Pelatro profits double as acquisition boosts recurring revenues
Pelatro on Tuesday reported that annual profits more than doubled as revenue soared as the acquisition of Danateq's assets resulted in a jump in repeat sales.
The marketing software group said its revenue for 2018 came in at $6.1m, an increase of 95% compared to the year before, with profit before tax leaping by 129% to $2.5m.
The AIM traded company's customer base expanded from 7 to 16 and it broadened its geographic reach by breaking into the European market with an October contract win from Primetel in Cyprus.
Repeat revenues increased from $0.6m to $3.1m and now account for 51% of sales, up from 20%, after the outfit acquired assets from Danateq.
Richard Day, non-executive chairman of Pelatro, said: "In July 2018 we announced our acquisition of certain assets from Danateq, with its customers and real-time self-learning analytics platform and complementary campaign management solutions. The acquisition was funded with a further equity placing which was strongly supported by our shareholders, raising approximately £6m. We are grateful for their support. I am pleased to say that the Danateq business is living up to our expectations and the staff joining our enlarged group have been a tremendous fit."
Cash and cash equivalents stood at $2.2m at the end of the year, down from $4.1m at the same point the year before.
A statement from Pelatro said the current year had started positively, with significant customer wins, notably Vinaphone of Vietnam and Ooredoo in the Maldives.
"With our growing customer base, we have an increasing ability to cross-sell our products deeper across our network. We are winning new business with the telcos and have announced two new customers already in the current year, in addition to the launch of our Data Monetization Platform. Visibility over some $5.2m of revenue and a $15m pipeline, gives us every confidence as we look forward to the rest of the year," said Day.
Pelatro's shares were up 3.16% at 92.84p at 1222 GMT.