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SimiGon Limited  -  SIM   

Trading Statement

Released 07:00 16-Feb-2017

RNS Number : 0182X
SimiGon Limited
16 February 2017
 

SimiGon Ltd

("SimiGon" or "the Company")

 

Trading and Business Update

 

SimiGon Limited ("SimiGon" or "the Company"), a global leader in providing simulation training solutions, announces an update on trading for the year ended 31 December 2016 (the "Period") ahead of announcing its final results for the Period in April 2017.

The Company has, in the process of preparing its final results and after consultation with its auditors, concluded that it must recognise in the Period certain costs of meeting additional client demands outside the original scope of its major $6.7 million contract (as announced in June 2013). The Company has not yet received the requisite client confirmations which would enable the Company to recognise all the programs revenue. The Company has also been disappointed that procedural delays in concluding the signatory processes underlying its contract with the Israeli Air Force (as announced on 20 June 2016) have not enabled it to recognise any related revenues in the Period.

The Company expects that the effect of these delays is that it will report results for the Period below market expectations. The Company expects to report revenues of approximately $6 million and adjusted net profit before tax will be at least $0.3 million.

The Company remains optimistic in its outlook and confident in its existing forecasts for the current financial year ending 31 December 2017. The revenue and profit which could not be recognized in the Period will be incremental to those existing expectations for the years ending 31 December 2017 and 2018.

The Company's balance sheet remains strong with more than $8.0 million of liquid cash as at 31 December 2016. Given this significant cash balance, the Company intends to propose a share buy-back program later in the financial year. Further details will be provided in due course.

SimiGon President & CEO, Ami Vizer, said: "It is disappointing that our financial performance for this year has been affected by circumstances that are outside of our control but we are confident that all of the outstanding issues will be resolved in the coming year. This will contribute to the Company's great revenue and profit visibility for 2017 and beyond.

SimiGon continues to cement its position as a prime contractor for major long term simulation programs and during the Period we secured a number of significant new contracts, continued to deliver project milestones for long term contracts and successfully executed on delivery and performance of our systems.  

Despite this setback, the Company's Board of Directors looks to the future with optimism".


Enquiries:

 

SimiGon Ltd

Ami Vizer, Chief Executive Officer

Efi Manea, Chief Financial Officer

www.simigon.com

 

 

Tel: +1 (407) 951 5548

finnCap (NOMAD & Broker)

Henrik Persson / Scott Mathieson (corporate finance)

 

Tel: +44 (0) 20 7220 0500

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Trading Statement - RNS