21st Century Technology plc (AIM: C21), the specialist provider of integrated IoT systems and software to the passenger transport markets, announces its interim results for the six months ended 30 June 2019.
· Revenue £5.7m (2018: £6.4m):
o Passenger revenue increased 11%
o Fleet revenue decreased 22%
· Gross profit of £2.2m (2018: £2.4m), with gross margin improved to 39% overall
o Passenger £1.3m (2018: £1.2m)
o Fleet £0.9m (2018: £1.2m)
· Underlying loss before depreciation and amortisation £0.02m (2018: profit of £0.2m)
· Cash £0.4m increased from £0.2m last year
· Order intake in passenger systems is up 50% and 3% Fleet systems
· Invested over £0.5m in R&D during the period
· The value, scale and complexity of opportunities in the sales pipeline already identified for later this year and into 2020, when the Transforming Cities Funding (TCF) developments start to commence provides valuable growth opportunities for the group.
· New solutions developed for regulation-driven opportunities based on our own technologies
· Entry to new market segments, airports and hazardous goods distribution; diversifying the Group's customer base and offering.
· First sale of passenger information systems into new bus station project in Toronto, Canada
· Three-year framework contract renewal signed with Arriva
· First sale newly developed colour LED street displays technology for West Midlands Combined Authority
Russ Singleton, CEO of 21st Century Technology plc, said:
"The reduction in UK new vehicle registrations cannot continue at this level for much longer and whilst this has impacted the Company's financial performance in H1, this masks the full picture. Order intake is up, particularly in our Passenger Business and we continue to invest significant resources into R&D, delivering new products and capabilities that are beginning to bear fruit.
The SaaS-based solutions that we have developed are putting the Company in a much stronger position for the longer term as these now proven technologies begin to generate customer demand in domestic and international markets. The current and ongoing trials have the potential to shift our business model away from reliance on capital expenditure and revolutionise the transport service industry to a service-on-demand model.
Investments in marketing are bolstering the awareness of our systems in Airport and Hazardous Goods transport market sectors, providing us with opportunities in sales channels that were previously not accessible to 21st Century.
With our largest ever pipeline and a number of negotiations in advanced stages giving us confidence, my dedicated team and I are looking forward to an improved second half to the year and 2020 and moving towards completion of the transformation of the business."