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Touchstar PLC (TST)

Touchstar PLC

Trading Statement
RNS Number : 2250X
Touchstar PLC
18 December 2019
 

 

 

Touchstar plc

(the "Company", "Touchstar" or the "Group")

 

Trading Update

 

 

The Board of Touchstar plc provides the following update on trading and outlook:

 

FULL YEAR OUTLOOK

 

Total group revenue is expected to be around £7million, which is below where we had hoped but represents growth from continuing businesses, excluding the recently disposed On-Board division, of approximately 10% year on year.

 

Two factors have negatively impacted our performance. Firstly, there has been a general trend during this final quarter of the year of customers not committing to placing orders due to the political uncertainty in the UK. Secondly there was a negative factor specific to our business.  Whilst we received several large orders, including one which was highly significant, the race for delivery prior to the year-end has been impacted by extended lead times for obtaining stock.  Thus, delivery of these items will now be completed in the first quarter 2020.

 

These factors will have a knock-on effect to profitability in the current financial year. At both an after tax and pre-tax level performance is expected to be below prior expectations.

 

Set against this, cash generation in the second half of 2019 has been positive, with the group moving into a net cash position.

 

As a result of these stock delivery issues, the order bank for 2020 is exceedingly healthy at around £800k (compared to £254k at 31st December 2018).

 

As regards our underlying operational performance, the newly developed products continued to grow and are expected to show strong revenue growth on 2018 - Podstar Haulage around 86% , Podstar Fuel around 13% , and Access Control around 10% - we expect these trends to continue. With the level of political distraction now reduced, it is probable that the  trading in our most economically sensitive part of the business, namely Logistics, will stabilise and recover, rather than record a 20% decline as is expected this year (as customers deferred their investment decisions).

 

The recent disposal of our On-Board division, consequential cost savings, a strong order book and positive reactions to our new products auger well for 2020.

 

Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) ("MAR") prior to its release as part of this announcement and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

 

For further information, please contact:

 

Touchstar plc

Ian Martin

Mark Hardy

0161 874 5050

0161 874 5050

WH Ireland - Nominated Adviser

Mike Coe/ Chris Savidge

  0117 945 3472

 

 

 

 

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
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Data provided by FE fundinfo. Care has been taken to ensure that the information is correct, but FE fundinfo neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.

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