logo-loader
RNS
viewStarcom PLC

Starcom PLC - Trading Update

RNS Number : 5191K
Starcom PLC
22 April 2020
 

Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information for the purposes of Article 7 under the Market Abuse Regulation (EU) No. 596/2014 ("MAR"). With the publication of this announcement, this information is now considered to be in the public domain.

 

22 April 2020

 

Starcom PLC

("Starcom" or the "Company")

 

Trading update

 

Starcom (AIM: STAR), which specialises in the development of wireless , Internet-Of-Things (IoT) based solutions for the remote tracking, monitoring and protection of a variety of assets, provides a trading update on the impact of the Covid-19 pandemic.

 

Further to the announcement on 25 March 2020 regarding the impact of the Covid-19 pandemic on the Company's trading, over the last two weeks the situation in many of the territories relevant to Starcom has worsened and several of the Company's key clients are now running partial operations or have temporarily shut down all operations.   For example, in the USA all of the Company's clients have ceased manufacturing for the time being and in Russia the Company's distributor has also frozen its operations. Consequently, client orders are now being delayed. The Company is also experiencing delays in supply and delivery to and from its factory, due to local transport difficulties and airport restrictions. 

 

It is not possible at this stage to predict with any reliability what financial impact the pandemic will have to the Company's trading this year and the Company will provide an update when the uncertainty starts to decrease. Should the restrictions on trade in the jurisdictions in which the Company and its clients operate continue for a sustained period, it is not expected that the Company would achieve the levels of growth previously anticipated. Meanwhile, the Company is taking all the necessary prudent steps to contain costs and preserve cash, including furloughing certain employees and reducing wages for non-furloughed staff and management. The Company has also applied for the government backed loan that is part of the support package the Israeli government offers to businesses affected by the Covid-19 pandemic.  The board feels confident that these measures will enable the Company to survive and come out of this tough period ready to leverage the strong position it had built before the Coronavirus impacted world trade and its economies. 

 

Enquiries: 

 

Starcom Plc


Michael Rosenberg, Chairman

07785 727 595

Avi Hartmann, CEO

 

+972 5447 5663



Allenby Capital Limited (Nominated Adviser and Broker)

020 3328 5656

James Reeve / Jeremy Porter / Asha Chotai

 


Peterhouse Capital Limited (Joint Broker)

020 7469 0930

Lucy Williams / Charles Goodfellow / Eran Zucker

 


Leander PR (Financial PR)

07795 168 157

Christian Taylor-Wilkinson


 


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 [email protected] or visit www.rns.com.
 
END
 
 
TSTBBGDSRGDDGGD

Quick facts: Starcom PLC

Price: 0.8899

Market: AIM
Market Cap: £3.13 m
Follow

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE