REG - Datalex PLC Datalex PLC - DLE - 2023 Annual Report & Notice of AGM

DatalexAnnouncement

20/06/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240620:nRST1264Ta&default-theme=true

RNS Number : 1264T  Datalex PLC  20 June 2024

Datalex plc

 

Publication of 2023 Annual Report and Notice of Annual General Meeting

 

Return to revenue growth in 2023 as Datalex starts to rebuild market share in
the airline technology market.

 

Dublin, Ireland, 20 June 2024: Datalex plc ("Datalex", the "Company" or the
"Group") (Euronext Growth Dublin: DLE), a market leader in airline e-commerce
solutions, announces that it has today published its Annual Report and
Financial Statements for the year ended 31 December 2023 (FY 2023) and Notice
of Annual General Meeting ("AGM").

 

 Metric                2023        2022        YoY Growth (US$’M)     YoY Growth

                       (US$’M)     (US$’M)                            (%)
 Revenue               28.9        23.5        5.4                    23%
 Platform Revenue      12.9        11.1        1.8                    17%
 All Other Revenue     16.0        12.4        3.6                    29%
 Gross Profit          9.7         6.4         3.3                    52%
 Gross Margin          34%         27%         -                      +7%
 Adjusted EBITDA((1))  (2.9)       (5.3)       2.4                    45%

 

(1)   Adjusted EBITDA is defined as earnings from operations before (i)
interest income and interest expense, (ii) tax expense, (iii) depreciation and
amortisation expense, (iv) share-based payments cost and (v) exceptional items

 

 

Commenting on today's announcement, Jonathan Rockett, Datalex CEO, said:

 

"In 2023, Datalex signed a number of long-term renewals with its existing
customers that have set a solid foundation for future growth.

 

We are particularly pleased that as part of the renewal process, Aer Lingus,
Edelweiss and Air China will be migrating to Datalex's newest platform
products. These renewals, along with the related investment by these airlines
to migrate to Datalex's latest product suite, are not only a testament to the
value of our long-standing partnerships with customers, but also a vote of
confidence in where Datalex is bringing its products over the next 3 - 5
years.

 

Additionally, Air Transat signed a new deal which includes a continuation of
their existing product solutions combined with Datalex continuing to provide
further capability to them over the partnership to enable them to achieve
their growth strategy and retailing ambitions. JetBlue also extended its
partnership with Datalex for the maintenance of existing services.

 

It is hugely positive that the Group has continued to sign new customers over
the past 18 months. It is a validation of the solution that Datalex provides
to the airline market and also proof of Datalex's ability to win in its
market.

 

The renewals of key customer accounts in 2023 not only increased Datalex's
recurring revenue base for the medium term, but also enabled the Group to move
its customers to the Group's streamlined revenue model.

 

I have been really encouraged by the level of passion and commitment I have
seen across the business since I joined in November 2023. The Datalex team is
focused on delivering value to its customers. This is a significant strength,
as 2024 will be another year where we remain focused on delivering activation
and transformation projects for our customers. These projects will be another
stepping stone for our turnaround leading to sustainable and long-term growth.

 

 

I am more excited than ever about Datalex's products and opportunities and
look forward to working alongside my committed colleagues to maximise our
potential into the future."

 

Key Financial & Performance Highlights

 

·      Revenue for FY 2023 increased year-on-year by 23% to US$28.9
million (2022: US$23.5 million).

·      Platform revenue of US$12.9 million increased year-on-year by
US$1.8 million or 17%16 (2022: US$11.1 million). The increase is attributable
to materially increased transaction volumes, most notably in Asia but also
globally during the year.

·      Overall services revenue of US$14.1 million increased by 25% in
2023 (2022: US$11.2 million as a result of a strong year for new customer
activation projects.

·      Other revenue of US$1.0m reflects revenue attributable to
termination fees that will not carry forward into the next fiscal period.

·      Gross profit of US$9.7 million, reflecting a 52% year-on-year
increase (2022: US$6.4 million), due to a combination of revenue growth and
gross margin expansion. Gross margin of 34%, representing a 7-percentage point
improvement year on year (2022: 27%). Gross margin expansion was due to higher
margin activation work taking place in 2023, an increase in transaction
revenues, and one-off termination fees.

·      Total operating costs before exceptional items in 2023 marginally
increased to US$35.3 million (2022: US$35.0 million), primarily as a result
of increased headcount costs to facilitate additional implementations and
increased service revenue, offset by reduced amortisation of deferred
fulfilment costs.

·      Adjusted EBITDA loss of US$2.9 million for 2023, an improvement
of US$2.4 million compared to the prior year (2022: US$5.3 million).

·      Loss after tax for the Group for 2023 was US$9.0
million (2022: US$11.5 million), an improvement of US$2.5million.

·      Cash as at 31 December 2023 totalled US$5.8
million (2022: US$6.5 million). A net cash outflow from operations (US$6.9
million) and outflows to fund product development (US$1.4 million) were offset
in part by proceeds of borrowings (US$8.6 million), contributing to a decrease
in cash of US$0.8 million during the year.

 

Significant Corporate Developments

 

·      In 2023, partnership renewals were announced with Air China, Air
Transat, JetBlue, Edelweiss and Aer Lingus, setting a solid foundation for
future growth. Aer Lingus, Edelweiss and Air China will be migrating to
Datalex's newest platform products.

·      In September 2023, Virgin Australia changed priorities with
respect to its internal Next Generation Retail programme, impacting Datalex
and several other vendors. Also during the year, SAS filed for chapter 11
bankruptcy in the US, resulting in them not proceeding with the Datalex NDC
product. In 2023, we recognised revenue of US$3.5 million from these customers
that will not be recurring revenue in 2024.

·      In 2023, we signed an agreement with LATAM Airlines. Although the
project achieved its primary endpoints in June 2024, we have agreed that this
solution will not be part of LATAM Airlines' or Datalex's short term
priorities and will not proceed. We derived significant value and insight from
this project and will continue to invest in co-innovation projects with
airlines, where we see strategic areas of opportunity and a joint return on
investment.

·      The activation project with easyJet continues to progress well,
with easyJet going live with Datalex Merchandiser in December 2023, with
further activations planned in 2024.

·      In December 2023, the Company announced a new partnership
agreement with Air Macau to go-live with Datalex's new Shopping and Pricing
product, evidencing its ability to remain innovative in a competitive
landscape.

 

Balance Sheet Developments

 

·      During 2023, the Group secured an additional loan facility of
€5 million from Tireragh Limited increasing the total loan facility to €15
million with a repayment date of 31 December 2024. At 31 December 2023, the
Group had drawn down €13m from the Tireragh Limited loan facility.

·      The Board has continued its focus on positioning the business to
repay the Tireragh Limited loan facility and is actively working with its
financial advisors to advise on and commence an equity fundraising. If
successful, it is intended that this funding will enable the Group to repay
its existing loan facility with Tireragh Limited and provide sufficient
working capital to invest further in the Group's product roadmap and
activation projects, while continuing to compete for new revenue
opportunities.

·      The Board has the support of Mr. Dermot Desmond, the Group's
largest ultimate beneficial shareholder, who has confirmed to the Group that
he will procure support for the planned equity fundraising. IIU Nominees
Limited has also indicated its intention to apply for its pro rata entitlement
of any fundraising.

·      Pending the above, the Company's lender Tireragh Limited, has
informed the Group that, in the event that Datalex does not complete its
planned equity fundraising, and subject to terms and conditions to be agreed,
it will extend the termination date of the existing Tireragh Limited loan
facility from 31 December 2024 to 1 July 2025, and provide a new loan facility
in the amount of €10 million, if required, increasing the total facility to
€25m.

 

2023 Results Presentation

 

Management will review the 2023 results on a webcast at 9am Dublin time on
Thursday, 20 June 2024. The webcast will be available on our website at
https://investors.datalex.com/reports-information/results-presentations
(https://investors.datalex.com/reports-information/results-presentations) .

 

Annual Report

 

Datalex's 2023 Annual Report and Financial Statements are available to view on
www.datalex.com/investors and will shortly be available for inspection at
http://www.rns-pdf.londonstockexchange.com/rns/1264T_1-2024-6-19.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1264T_1-2024-6-19.pdf)

 

AGM

 

The Company's AGM will be held on Thursday 18 July 2024 at 11.00 a.m. Dublin
time at Block V, Eastpoint Business Park, Dublin 3 D03 H704, Ireland.

 

The Notice of AGM contains details of all resolutions to be proposed at the
AGM. Any relevant updates regarding the AGM, including any changes to the
arrangements outlined in the Notice will be announced via a Regulatory
Information Service.

 

The Notice of AGM and a Form of Proxy will shortly be available on the
Company's website and may be viewed and downloaded online at
https://investors.datalex.com/shareholder-centre/shareholder-meetings
(https://investors.datalex.com/shareholder-centre/shareholder-meetings) . Hard
copies of the Notice of AGM will be posted to shareholders who have elected to
receive them.

 

ENDS

 

Contact information

 

Investor Enquiries

Neil McLoughlin, Datalex plc

+353 1 806 3500

investor.relations@datalex.com (about%3Ablank)

 

Media Enquiries

Eavan Gannon, Powerscourt

+353 87 236 5973

Datalex@powerscourt-group.com (about%3Ablank)

 

About Datalex

 

Datalex's purpose is to transform airline retail. Datalex is a market leader
in airline retail technology, offering unique products that enable airlines to
drive revenue and profit as digital retailers. Datalex has a strong track
record of delivering digital retail transformation for progressive airline
brands worldwide. The Group is headquartered in Dublin, Ireland, and maintains
offices across Europe, the USA and China. In 2023, Datalex was awarded the
'Great Place to Work®' and 'Best Workplaces in Tech™' certifications.
Datalex plc is a publicly listed company, on Euronext Growth, Dublin.

Learn more at www.datalex.com (about%3Ablank)

 

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
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ISEQKLFFZQLEBBL