Datalex reports strong growth in line with expectations

Travel software firm will seek permission to issue dividend at AGM

Aidan Brogan chief executive of Datalex pictured at their office at East Point Dublin. Photograph: Cyril Byrne / THE IRISH TIMES

Aidan Brogan chief executive of Datalex pictured at their office at East Point Dublin. Photograph: Cyril Byrne / THE IRISH TIMES

 

Dublin-based travel software firm Datalex has said it expects growth of between 20 and 25 per cent this year in line with expectations.

In an interim management statement to the end of April, issued before its AGM on Tuesday, the company said its performance was on track to deliver a seventh consecutive year of double digit growth.

“Our financial position at today’s date is in line with expectations and we remain on track to deliver strong growth in year-end cash reserves,” it said.

On Tuesday it will ask shareholders to approve a dividend of four US cents per share, a rise of 33 per cent on last year’s rate.

Last month, Datalex brought its fifth customer live in China and is confident of further progress in the region during 2016, having continued investing in scaling its presence there.

“In addition, we are in the process of scaling our delivery capacity and localisation capability through a partnership with a leading Chinese IT services provider, details of which will be announced in the coming months,” it said in the statement.

The company also expects to fully deliver its digital commerce platform to Swiss International Airlines in the second half of the year.

“We continue to see major airlines around the world embark on digital transformation programmes, prompted by the recognition that digital commerce systems are now the primary means of customer engagement.”

Also in the statement, Datalex referred to its recently announced deal with IBM to collaborate on the provision of new travel retail systems while in the area of innovation, the company noted the launch of new pricing and payment features and the advancement of its API delivery platform to allow airlines improve on digital performance for customers.

“In our 2015 results announcement issued in March 2016, we provided guidance to the market indicating Adjusted EBITDA growth of 20 - 25 per cent in FY2016, which would represent our seventh consecutive year of double digit growth. Our performance to date this year is in line with these expectations,” it said.

In a note, Davy said: “Commentary around its pipeline in general is encouraging - Datalex anticipates a number of new signings in the coming months.

“Meanwhile, SWISS will go live in early H2 and the company has continued to improve the scalability of its product with investment in its functionality.”

Market expectations are not expected to change materially, it said.