6 Mar 2020 14:35
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
Telit Communications PLC
Statement Regarding COVID-19 and Proposed Shareholder Return
London, 6 March 2020- Telit Communications PLC ("Telit", "the Group", AIM: TCM), a global enabler of the Internet of Things (IoT), provides the following update on the impact of COVID-19.
The Group continues to see minimal impact on production due to the ongoing COVID-19 situation and reiterates confidence in meeting the Board's expectations for the financial year ended 31 December 2020.
Telit's global supply chain is comprised of multiple contract manufacturers with a wide geographic footprint that effectively support the Group's production requirements. The Group's main supplier is located in China and resumed operations in mid-February 2020 and the remainder of Telit's suppliers are fully operational.
Under the leadership of Paolo Dal Pino, Chief Executive Officer, the Group is working closely with all partners and customers to avoid any supply chain disruption, should the availability of raw materials become a factor, and will continue to monitor the situation closely.
The Group will report its audited financial results for the year ended 31 December 2019 in the week of 16 March 2020, which will be in line with the Group's trading statement of 14 January 2020.
As at 31 December 2019, the Group had net cash of $48.2 million following the sale of the automotive division and repayment of bank borrowings. The annual results will outline the Board's intention to seek approval of a return of cash to shareholders by way of a share repurchase programme for up to 10% of the outstanding shares or up to $20 million.
Paolo Dal Pino, Chief Executive Officer Telit, commented:
" We are fully focused on ensuring that the impact of the global COIVD-19 situation continues to have minimal effect on our production, customers and of course our employees around the world. Telit expect to continue improving its financial performance, with a central focus on profitability and cash generation, and we enter 2020 with strong momentum to capitalise on growth opportunities in the IoT market."
Enquiries:
Telit Communications PLCPaolo Dal Pino, Chief Executive Officer Yariv Dafna, Finance Director & President | Tel: +44 203 289 3831 |
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finnCap (Nomad and Broker) Henrik Persson/Giles Rolls (corporate finance) Tim Redfern / Richard Chambers (ECM) | Tel: +44 20 7220 0500 |
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FinElk | Tel: +44 20 7631 8618 |
Robin Haddrill/ Cornelia Schnepf |
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About Telit
Telit (AIM: TCM), is a global leader in Internet of Things (IoT) enablement. The company offers the industry's broadest portfolio of integrated products and services for end-to-end IoT deployments - including cellular communication modules in all technologies, GNSS, Wi-Fi, short-to-long range wireless modules, IoT connectivity plans and IoT platform services. Through the IoT Portal, Telit makes IoT onboarding easy, reduces risk, time to market, complexity and costs for asset tracking, remote monitoring and control, telematics, industrial automation and others, across many industries and vertical markets worldwide.
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