Software group tells shareholders it remains on course for revenues and earnings
Kape, the Isle of Man-based software group, is on course to achieve its revenue and earnings targets, it will tell shareholders today.
The AIM-listed business is holding its annual general meeting at 12pm today (May 21).
Due to COVID-19 restrictions, the meeting is being convened with the minimum quorum of only one director and one other shareholder in attendance.
At the meeting, chief executive Ido Erlichman will update shareholders on progress.
In a statement, he will say: “The company remains on track to deliver revenues of $120-123m and adjusted EBITDA of $35-38m in 2020.
“The integration of PIA continues to progress to plan and management are confident in delivering at least the $3.5-4.5m in cost synergies, as outlined at the time of the acquisition, in the current financial year.”
Kape’s server infrastructure is now fully integrated into PIA, and a technology revamp has been completed enabling a faster and broader service to PIA’s customers with the number of PIA’s server locations increased from 29 to 46.
Mr Erlichman will also say that the business has made a strong start to 2020, despite the global macroeconomic disruption caused by the COVID-19 pandemic.
“As announced on 31 March 2020, Kape has experienced increased demand for its products as working remotely has become commonplace across the globe in response to COVID-19.
“Within the digital privacy segment, new monthly sign-ups in April 2020 increased by 19% to the comparable period in 2019 on a proforma basis.
“In addition, we are already seeing an uplift in the growth of new users from the implementation of Kape’s user acquisition knowhow and technology.”
From an operational perspective, as social distancing measures begin to ease in certain locations, Mr Erlichman revealed that Kape has reopened a number of regional offices in accordance with local guidance, with the remainder of the company continuing to successfully work remotely.
He said in his statement: “Management continues to monitor COVID-19 closely and, despite its impact on the global economy, remains confident in the future growth prospects of the company.”
In March this year Kape entered into an agreement with Bank of Ireland, Barclays Bank and Citi Commercial Bank, to provide senior secured term and revolving credit facilities of up to $70m.
