Enables IT Group PLC Trading Statement (0360H)

TIDMEIT

RNS Number : 0360H

Enables IT Group PLC

14 May 2014

 
 Date:        14 May 2014 
 On behalf    Enables IT Group plc ("Enables IT", 
  of:          the "Company" or the "Group") 
  Embargoed    0700hrs 
  until:

Enables IT Group plc

Trading Statement

Enables IT, a leading provider of cloud computing, managed and professional services, announces a trading update.

Following the period end, the Group conducted a detailed review of the sales pipeline in the UK and as a result has taken a more prudent view in relation to the conversion and deliverability of its pipeline and order book. A reorganisation was instigated as a consequence of this review which included several staff changes and ongoing the Company is benefiting from the related cost savings. Selected recruitment of sales personnel has been commenced.

Revenue for H1 was marginally ahead of expectations at approximately GBP3.6 million and H2 is expected to be broadly similar but will also benefit from a full period of contribution from KTL. However, as a result of the review, for the full year to 30 September 2014, the Board expects revenues to be below market forecasts and EBITDA to be marginally negative.

During H1 the Company completed the successful acquisition of KTL in the USA and is pleased with the progress made in the integration with our existing business there. The opportunities in the US have been particularly encouraging to the Board, and we are actively seeking ways to increase the Company's exposure in this strong market.

The Group continues to expand the customer base and the diversity of sectors served. Furthermore, the Company continues to see significant opportunities in the market place as corporates look to cloud-based solutions. Acceptance of hosted solutions and the shift of spend from capex to opex means the market trend continues to be positive. Enables IT remains well placed to capture the opportunity, and has continued to make significant investment in the Group's infrastructure including both the UK and US data centres.

The Group's financial position remains strong with sufficient cash funds for current business operation and immediate strategic plans.

Michael Walliss, Chief Executive Officer, said:

"After an encouraging H1 we are disappointed with the results of the pipeline review in the UK. This represents a short term issue and accordingly we have implemented a number of operational changes which we expect to deliver a marginally positive EBITDA for H2. We have demonstrated our ability to deliver another successful acquisition and further opportunities exist in this area. The business model remains sound with recurring revenue representing more than 50% of group revenue, and the significant long term market opportunity continues to grow."

-Ends-

Enquiries

 
 Enables IT Group plc                Via Redleaf Polhill 
 Michael Walliss, CEO                enablesit@redleafpr.com 
 
 Cenkos Securities plc (Nominated    +44 (0)20 7397 
  Adviser and Broker)                 8900 
 Max Hartley, Corporate Finance 
 Andy Roberts, Sales 
 
                                     +44 (0)20 7382 
 Redleaf Polhill (Financial PR)       4730 
 Dwight Burden                       enablesit@redleafpr.com 
  Rebecca Sanders-Hewett 
  David Ison

About EnablesIT

Enables IT Group plc is a leading provider of cloud computing, managed and professional services in the UK and North America. From on-premise private cloud networks, our IAAS/SAAS platform HAVEN within both our US and UK Data centres, to backend core network and wireless solutions, Enables IT specialises in the delivery and management of mission-critical services, enabling customers to reduce the costs, complexity and risks associated with their IT infrastructure.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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