A technology innovator delivering mobile, telecom and e-business software products and services. I have a holding in my growth portfolio (epic code: GBO).
Globo issued a trading update for the six months to 30 June. They have maintained strong revenue growth momentum and reported that sales for the period increased by 51% per cent year-on-year in the first half of 2013 to approximately €32m, ahead of market expectations. They also expect that EBITDA and PBT will be slightly ahead of market expectations
They are seeing on-going demand for their GO!Enterprise platform, which recorded revenue growth of 133% year-on-year to €10.2m and their consumer mobility products (CitronGO! and GO!Social) which recorded revenue growth of 22% to €17.9m.
In line with normal seasonality favouring the second half, the Group anticipates revenues and margins will continue to increase over the remainder of the year.
Unfortunately this business is still burning cash; they have net cash of €9.2m after consuming €4.5m over the six month period. Until this reverses any substantial share price re-rating will be constrained.
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