Telit Communications PLC (AIM: TCM), a global enabler of the Internet of Things (IoT), has published an update regarding trading for the year ended 31 December 2018 and the proposed sale of its automotive division.
The Group's revenue is expected to be at the top end of previous guidance at approximately $427 million, representing revenue growth of 14% (2017: $374.5 million), with Cloud and connectivity revenues notably up by more than 20% to $33.5 million (2017: $27.7 million).
The Group delivered a positive 'profit in cash' for the second half with adjusted EBITDA for the full year expected to be in line with previous guidance at between $30-$35 million (2017: $18.1 million).
Net debt at 31 December 2018 was approximately $34.5 million (2017: $30.2 million).
The Group expects to publish its results in March 2019.
Telit notes that TUS International Limited ("TUS"), the purchaser of Telit's automotive division, has on 14 January 2019 published details regarding a placing and subscription for the purposes of financing the transaction. Further, TUS today sent to its shareholders a circular in relation to the subscription by a connected investor. Conditions for the completion of the transaction remain unchanged from Telit's update of 11 December 2018. The timetable for the transaction therefore remains that TUS shareholder approval is expected to be obtained on 29 January 2019 and the transaction to complete by 31 January 2019.
The circular can be found in the following link http://www3.hkexnews.hk/listedco/listconews/SEHK/2019/0115/LTN20190115053.pdf
Paolo Dal Pino, Executive Chairman of Telit, commented:
"Over the last few months, we have significantly strengthened the Group's infrastructure and delivered double-digit revenue growth and improved profitability for the year just finished.
"The Board has changed significantly during the course of the year and I believe that the strategic and governance leadership of the Group is now in place to deliver upon our true potential.
"We are seeing promise of growth across markets and expect to improve further our financial performance in 2019; based on continued revenue growth, gross margin control and, where possible, improving upon the $10 million of additional cost savings previously announced."