Firm sees first profit in six years

Datalex has forecast “strong cash generation” and continued profit growth for 2013, following the generation of its first annual profit in six years in 2012.

The Dublin-based travel software solutions provider furnishes numerous international airlines and travel operators with e-commerce software.

The company said yesterday, via its latest trading update, that it has seen “continued strong growth” during the first four months of this year and remains “well positioned” to deliver on its already projected target of adjusted EBITDA growth of 25%-30%, to between $7.2m and $7.5m (€5.53m and €5.77m).

Datalex said its financial position was “robust” at the end of 2012, with net cash reserves of $14.6m, while as of the end of April, it is “in line with expectations”.

“We anticipate strong cash generation for 2013, as we continue to grow profitably,” it added.

In March, Datalex — which counts the likes of Aer Lingus, Delta Airlines, Trailfinders, Air China, KLM, and Best Western as clients — reported a net profit of $1.1m for 2012, marking the first time the company showed a surplus since 2006.

The company said, as part of yesterday’s update, that its new business pipeline continues to strengthen.

It added that it is in “advanced discussions” with a number of new customers and expects to close two new deals by the middle of this year.

Furthermore, a significant strategic re-seller partnership agreement — with an as yet unnamed airline industry-related IT services company — that has been at the negotiation stage for a number of months, is set to successfully conclude shortly, with first customer engagement from the new relationship due to begin early in the second half of the year.

In March, Canadian carrier Westjet signed up to Datalex’s product, with roll-out continuing across airlines such as Virgin Australia and Omanair.

“These airlines will go live during the second half of 2013, and help drive growth in our core transaction revenue stream in 2014 and beyond,” the company said.

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