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Galasys wins £1.1mln of contracts in fourth quarter

Theme-park software provider Galasys won 25 new contracts at the tail end of 2015 worth a total of £1.1mln, it said, including for Asia's first animation park due to be complete this year.
Galasys wins £1.1mln of contracts in fourth quarter
Seven of the deals since September last year were with new customers, while 18 were with existing ones..

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Theme-park software provider Galasys (LON:GLS) won 25 new contracts at the tail end of 2015 worth a total of £1.1mln, it said, including for Asia's first animation park due to be complete this year.

"This latest batch of new contracts adds to the group's already impressive portfolio and I reiterate my confidence in the continuing success of Galasys," said chief executive Sean Seah.

Seven of the deals since September last year were with new customers, while 18 were with existing ones.

The deal with Asia's first animation theme park built at a cost of £70.5mln in Ipoh, Perak, Malaysia, which has over 40 attractions, is worth £215,000.

Also among the most significant wins is a deal with the Shanxi Dream Waterpark in Shanxi Province worth £141,000.

Meanwhile, a deal with the Midea Egret Lake Forest resort is worth £83,000. The site is part of a RMB20 billion forest resort rated national 5A by the Chinese government.

Seah added that Galasys continues to build on its position as the leading provider of amusement park solutions in China and South East Asia.

The business has been operating since 2005 and supplies services to more than 160 amusement parks. It employs and retains more than 140 people across Asia.

House broker WH Ireland notes that the 25 new contracts have a total value of £1.1mln, which is equivalent to 14.8% of its estimate for full year revenue in 2015 of around £7.4mln.

"Galasys has made it a habit of winning new contracts, which we believe is down to the company’s market leading position in the ticketing and access control systems in China and South East Asia, which make it the partner of choice in the theme park and amusement park industry in the region.

"However, today’s news that it has managed to secure 25 new contracts against a background of boardroom turbulence, is all the more impressive," said Brendan D'Souza.

Last month, two directors called for an extraordinary general meeting (EGM) set for December 29, 2015 proposing a host of measures, including a motion to remove chairman Teh Kim Seng and that three new independent non-execs be appointed.

Burt the EGM was adjourned until a later date after an English High Court order was received on December 24, last year..

D'Souza notes that since the start of the boardroom woes around three months ago, Galasys share price has halved to a mere 17p nand that it currently trades at a paltry 6.8 times 2015 earnings estimates.

This is a 70% discount to its peer group of London listed application software companies and an 82% discount to closest comparator, Accesso (LON:ACSO), which
"we believe is greatly overdone", notes the analyst.

Galasys shares nudged 2.94% higher on the day to 17.50p.

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Galasys PLC Timeline

September 19 2016
December 14 2015
September 08 2015

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