Touchstar hails a profitable year amid pandemic
(TST ) said in a trading update that it has traded profitably for the year ended 31st December 2020 following a ‘cautious’ approach in response to COVID-19 pandemic.
The mobile data computing solutions supplier said it had traded profitably and was strongly cash generative during the period, supporting customers and looking after its staff following ‘a period of a global pandemic and the largest economic contraction in a generation.’
Cash generation remained strong and Touchstar ended 2020 with a net cash position of £1.6m with £1.9m of cash in the bank at the year-end (31 December 2019: £850,000).
Chairman, Ian Martin, said “enormous credit should go to the management team for having the foresight to realise early on the implications of COVID 19 on society and the economy.”
The company anticipates reporting its preliminary results for 2020 in late April 202. It said it expects these results to show ‘a profitable outcome on both a pre-tax and after- tax basis.’
“It is their timely actions that have enabled us to give a clear and consistent message throughout this crisis to all our employees, customers and shareholders, bringing a degree of calmness to an uncertain time. The cautious approach that has served us so well is retained.
Our focus remains on supporting customers, cash and the wellbeing of our employees. We continue to not only keep to but exceed the goals in the roadmap we put in place to navigate the business through 2022,” he added.
Shares in Touchstar have increased by over 40% in the past three months to open 35.00% higher this morning at 67.5p following the announcement.
"At the moment any financial prediction is foolhardy amid such raised levels of apprehension throughout the country. The fact that social disruption continues is not a surprise to us. I suspect that as 2021 progresses it will become more straightforward which is the key assumption to why we are optimistic of an even better outcome this year.”
He added, “I will repeat the message of my prior communication that our motivation is not to just be a survivor of this crisis, but emerge with solid finances, improved products, all our talent retained and the energy to take the opportunity in front of us - we remain on track.
To end I would like to thank all the key workers who are fighting on our behalf to save lives. It is through their heroics, combined with science that we will soon be in better times. Keep safe, follow the guidance - it is there to protect us all."
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