Datalex Plc — Management Reports 2020

Jul 8, 2020

National Storage Mechanism | Additional information

RNS Number : 4319S

Datalex PLC

08 July 2020

Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. With the publication of this announcement, this information is now considered to be in the public domain.

DATALEX PLC

2020 Guidance

Dublin, Ireland - 8 July 2020: Datalex plc (the "Company" or the "Group") (Euronext Dublin: DLE), a market leader in transformative airline retail products and solutions, today issues the following statement regarding 2020 guidance.

The Company confirms that it expects to report adjusted EBITDA growth in 2020. Based on current assumptions adjusted EBITDA on a constant currency basis (see notes below regarding basis of preparation) of $0.75 million to $1.5 million is expected during 2020, compared to adjusted EBITDA of $0.5 million in 2019.

Commenting today, Chief Executive Officer, Sean Corkery said:

"I am pleased with this positive guidance. Contributory factors include strong customer relationships and contracts, as well as actions taken during the past number of months to achieve the necessary stabilisation and right sizing of the business. Whilst we acknowledge the impact of COVID-19, and aviation's industry-wide uncertainty, Datalex occupies a key space with transformative software and products which can help airlines recover quickly.  We are confident Datalex products can support our customer base as they manage the Covid crisis while rebuilding our revenues and profitability."

The financial information in this announcement is not audited and does not constitute statutory financial statements of Datalex plc. The statutory financial statements for FY 2020 will be prepared in accordance with International Financial Reporting Standard 15 "Revenue from contracts with customers" (IFRS 15) which came into effect on 1 January 2018. The guidance outlined above for FY 2020 is in accordance with IFRS 15.

IRSF15 recognition rules specify that timing of revenue recognition may be affected by factors outside our control, for example, including the credit rating of our customers. This may impact on the timing of recognition of forecast revenues and costs, as included in this guidance statement.

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.

This announcement contains inside information.

This announcement contains certain forward-looking statements. Actual results may differ materially from those projected or implied in such forward-looking statements. Such forward-looking information involves risks and uncertainties that could significantly affect expected results. Those forward-looking and other statements speak only as at the date of this announcement. Datalex undertakes no obligation to update any forward-looking statements. No statement in this document, except for the statement of expected adjusted EBITDA, is intended as a profit forecast or a profit estimate and no statement in this document (including the statement as to expected adjusted EBITDA) should be interpreted to mean that earnings per share for the current or future financial years would necessarily match or exceed the historical published earnings per share. The statement of expected adjusted EBITDA has been prepared based on assumptions and forecasts, including those set out in this announcement, some of which are outside of the Company's influence and/or control, and is therefore inherently uncertain and there can be no guarantee or assurance that it will be correct. The statement of expected adjusted EBITDA has not been audited, reviewed, verified or subject to any procedures by our auditors and you should not place undue reliance on it and there can be no guarantee or assurance that it will be correct.

Statements contained in this announcement are based on the knowledge and information available to the Board at the date it was prepared and therefore facts stated, and views expressed may change after that date. Nothing in this announcement is intended to constitute an invitation or inducement to engage in investment activity. This announcement does not constitute or form part of any offer for sale or subscription of, or any solicitation of any offer to purchase or subscribe for, any securities nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract, commitment or investment decision in relation thereto. This announcement does not constitute a recommendation regarding any securities.

This announcement has been issued through the Companies Announcement Service of Euronext Dublin.

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