GLOBO Plc Delivers Better-Than-Expected Revenue Growth

GLOBO Plc (LON: GBO) continues to grow internationally and secured new customer wins in Australia.

Mark Stones

Mark Stones (TMFMumbojumbones) joined The Motley Fool in 2014 and initially worked as a writer for Fool.co.uk, before joining the Fool’s analyst programme. Mark earned a BA in English from Loughborough University. Although he spends more time reading annual reports than Russian literature these days, he still appreciates a novelist’s antipathy toward the accepted view, which is a useful attitude when trying to sniff out hidden gems on the stock market. His approach to investing has been largely influenced by the principles of Warren Buffett and Peter Lynch. He also takes a special interest in the work of healthcare companies. Outside of investing, Mark plays guitar, enjoys good writing and has a guilty passion for combat sports.

Published 28 July, 2014 1:06 pm BST

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Shares of Globo (LSE: GBO) gained almost 7% in early trade after the AIM-listed software company announced its half year results.

Revenue for the six months to 30 June grew by 45% to €46.5m (2013: €32m), driven by licence and services growth, including recent customer wins in Australia. Pretax profit is expected to be slightly ahead of market expectations.

Globo has expanded in the US following the acquisition of Notify Technology. Almost 25% of the group’s employees are now based in the US — including executives, sales and technical personnel. The chief executive and Globo founder Costis Papadimitrakopoulos is relocating to Palo Alto to help oversee this “significant market opportunity”.

“During the first half of 2014 we have seen continued growth and substantial progress in building our business across geographies and technologies in the enterprise mobility market,” Papadimitrakopoulos said.

“We remain confident about our future prospects. In particular, the successful acquisition of the services division of Sourcebits Inc., allows us to increase our exposure to the Mobile Application Development Platform market for enterprise customers.”

The group’s net cash position at 30 June 2014 was €46m.