- Revenue up 11.2% on the prior corresponding period
- Sales opportunity pipelines for industrial theft deterrent and authentication products have grown by more than 400% over the last 12 months
- Revenue expected to increase through the year as investment in growth gains traction and pipelines convert to revenue
The CEO’s Business update on the year to 31 October 2015 (4 months) will be provided at the Company’s AGM this morning.
The update includes the following key developments:
Revenue for the 4 months to 31 October 2015 is up 11.2% on the prior corresponding period to $2.38 million, with growth in both the DataDotDNA (9.1%) and DataTraceID (24.6%) product lines. Regionally the EU is our strongest performer with revenue 32.6% more than the same period last year.
The revenue results also show that the investment in the US is starting to bear fruit and that diversification is well underway with approximately 37% of the group’s revenue now unrelated to the auto sector.
The strategic agenda is progressing well. As a result of the investment in growth, the sales opportunity pipelines for the DataDotDNA industrial theft deterrent and DataTraceID authentication products have grown by more than 400% over the last 12 months. Conversion of pipelines into revenue, particularly in the USA, is the key to additional growth.
Opportunities for growth in the auto sector also exist, including the potential for expansion in Europe.
Group revenue is expected to increase through the year as investment in growth gains traction and pipelines are converted to revenue.
Seasonally, revenue has also been higher in the second half in prior years. The investment in growth (8 additional sales resources) has of course had an impact on EBITDA, which was approximately -$594,000 for the 4 months to 31 October.
As at 14 November 2015 working capital included $3.7 million cash and $1.3 million in debtors