10 December 2019 – trading update and placing
The information systems and transport technical services group, formerly known as 21st Century Technology, has announced a trading update and details of a placing of new ordinary shares to raise £1.2m. Trading in the second half has been ‘satisfactory’ and results for the year ending 31 December 2019 are expected to be in line with market expectations. Approximately £9m of new business has been confirmed in Q4 for delivery in 2020 and beyond. In Passenger Information Systems the order book was 50% higher at the half year end versus the same time a year earlier. Fleet Services replacement of older vehicles has been lower than the norm and this has hampered performance. However, a number of operators have chosen to carry out higher-margin mid-life refresh of older vehicles and their on-board systems. In the placing, 2,400,00o new shares were issued at a price of 50p each. It is intended that the net proceeds will be used to strengthen the balance sheet to help secure pipeline prospects, to fund growth, R&D and marketing and to provide additional working capital. The shares are a SPECULATIVE BUY.