SimiGon Limited (LSE: SIM), a global leader in providing simulation training solutions, provides the following trading update on an unaudited basis in relation to the year ended 31 December 2020 and ahead of announcing its audited final results in late April 2021.
The Company is pleased to report that the second half of the financial year is expected to be stronger than the first and the Company expects this improving trend to continue as the global economy opens up and the vaccine roll-out continues. Revenues for the second half were 39% higher as compared to the first, and the Company's net adjusted loss for the second half was 29% lower than the first.
The Company expects to report revenue of approximately $3.22 million (2019: $4.88 million) and net adjusted loss of approximately $1.83 million (2019: net adjusted loss of $1.14 million) for the financial year as a whole. Whilst performance has predictably been lower as compared to the previous financial year as project delivery and expected new business wins have slowed in the face of the pandemic and associated restrictions, the Company is pleased with the financial resilience during the second half of year 2020.
The Company has continued to invest in R&D and marketing to ensure that the Company is able to capitalize on the market opportunities during the expected economic rebound.
The Company's balance sheet remains strong with approximately $5 million of cash and approximately $0.9 million of account receivables as at 31 December 2020 (of which approximately $0.5 million have subsequently been received).
The Company has no update to provide with regard to the ongoing litigation situation as described on 25 September 2020 announcement.
* net adjusted loss is calculated based on the expected net loss excluding other income, financial income or expenses, depreciation and amortization and share based compensation.
Ami Vizer, SimiGon's Chief Executive Officer and Executive Chairman, commented: "Despite the fact that SimiGon's core business supporting military aircrew training through direct Government contract and subcontracts in 2020 has been adversely affected by the COVID-19 pandemic, delaying numerous expected contracts, we have continued to work through the challenges, meeting programme deliveries, receiving awards for additional programs while improving revenue during the second half of the year.
We are currently encouraged by the changes in the simulation and training environment, where ongoing programs that were put on hold due COVID-19 affect are regenerated and new programs that have been postponed are back on the agenda. Given that the ongoing R&D efforts in XR, maintenance training and data analytics are creating significant future growth potential together with SimiGon's strategic programs and existing strong long-term relationships, we are confident in the longer-term prospects for the business".