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Software & services

Pelatro lands contract with Asian telecoms group, says 2020 results will be in line with expectations

The company said its re-positioning phase has now passed, and management is looking forward to healthy revenue growth in 2021

Pelatro PLC (LON:PTRO) said it has landed a new contract, with the company selected by an Asian telecoms company for campaign management operations.

The marketing software firm described it as a recurring contract and over a three-year term said it is expected to generate US$1.0mln-US$1.2mln of revenue. The company is to provide a variety of services as well as its software product.

Additionally, the company noted that it has also won additional business from an existing company. Pelatro is to provide advanced analytics to the client under the contract which is set to be a highly collaborative engagement with the client.

The company noted that it has received various purchase orders for change requests - for software upgrades and additional tools - so far in January. These orders have a total value of US$600,000.

In an update on trading, meanwhile, the company highlighted that its re-positioning phase is now behind it, and management is now looking forward to healthy revenue growth in 2021.

“The progress achieved on the Annual Recurring Revenue (ARR) front is particularly encouraging as it has prepared a strong foundation for the Group to build on,” the company said in the statement.

“On the back of this progress in ARR and the various contracts mentioned above, we currently already have contracts in hand representing 2021 revenue of around $5.6m, giving us every confidence of further growth and a successful roll-out of revenues, thereby resulting in a profitable year.”

Pelatro said its financial results for 2020, due for release by late March or early April, are expected to be in line with expectations. The company added that it anticipates modestly positive underlying earnings (adjusted EBITDA), although the figure may be impacted by disruptions caused by the coronavirus pandemic and local lockdowns.

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