The Board of Touchstar plc ((AIM:TST) 'Touchstar', the 'Company' or 'the Group'), suppliers of mobile data computing solutions and managed services to a variety of industrial sectors, is pleased to announce its interim results for the six months ended 30 June 2021 ("H1 2021").
This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those obligations.
30 June 2021
30 June 2020
· Trading Profit/(loss) after tax*
· Adjusted EPS*
· Cash net of overdraft and CBILs**
· Order book
· Profit after tax
· Basic EPS
H1 2021 Financial Highlights
· Emerged from pandemic with solid finances, improved products and retention of all our talent
· Profitable outcome for H1 2021 driven by tight cost control and higher margins
· Order Book continues to build
· Recurring revenue grew at 13.2% and makes up 38.5% of total revenue
· H1 2021 Revenue 7% higher than H2 2020 as activity picks up
· Secure a major CCTV installation programme for a government department which will conclude during the second half of the year.
· Transportation sector wins include a new customer with a 100-vehicle fleet (which is now live), a pharmaceutical prescription distribution direct to the door business and a third-party logistics operating business.
· Developed "Podstar" a complete software suite for transportation businesses.
· Several large users presently running successful pilots with planned roll out in 2022.
· H2 2021 started well and expect strong result
· FY 2021 we now expect to be above market expectations despite continued uncertainty
· Current prospects give us confidence that 2022 will be an even better year
· Order book as of the 10 September 2021, stood at £836,000.
* Refer to note 3 for details and note 7 for reconciliation
** CBILs Coronavirus Business Interruption Loan
Commenting on the results, Ian Martin, Chairman of Touchstar, said:
"Touchstar has emerged from the pandemic a stronger, higher quality business with good operating leverage. The company has traded well in recent months, as a result we now expect full profits to be ahead of our previous expectations."
"These results once again demonstrate how well management has steered the company through Covid-19. The business has shown itself again to be resilient, trading profitably in what was another disrupted period."
"Our publicly stated ambition was to emerge from the period of enforced restriction with solid finances, improved products, all our talent and renewed energy. This has been achieved, and management is now firmly focused on unlocking the longer-term growth potential of the business."