London based communications company Spiritel plc has issues an update on current trading for the year to 30 April 2008 in which they report full year revenues expected to be not less than £15.8m (2007: £13.6m) and second half underlying operating profitability more than double first half performance
The Company is pleased to report that revenue for the second half of the current year to 30 April 2008 is expected to be over 30% ahead of the first half, and not less than £15.8m (2007:£13.6m) for the full year. Second half underlying operating profitability is forecast to be substantially ahead of previous management expectations and at least double the level of earnings recently reported in the interim results to 31 October 2007.
The recent improvement in financial performance build further upon the return to underlying operating profitability reported in the interim statement and is the result of a strong third quarter performance which is expected to continue to the end of the financial year and beyond. The increased revenue reflects the fact that over the past nine months Spiritel has won a number of new contracts and recorded several successes in cross selling its expanded range of products and services to the enlarged customer base.
The Company is also pleased to report that tdotcom, acquired in October 2007, is outperforming initial expectations. Its rapid integration into Spiritel Business has led to the delivery of significant synergies, including cost savings and substantial revenue and margin increases. Forecast revenue and profitability from tdotcom, which has now been fully rebranded as Spiritel Business, is substantially ahead of pre-acquisition performance.
Alastair Mills Spiritel CEO commented: “Our successful and proven business model is now delivering tangible improvements to the Company which will ensure long term shareholder value. We expect trading in the fourth quarter to build on our strong first nine months and bring the financial year to a very encouraging conclusion.”