Datalex predicts strong growth
Published 17/11/2012 | 05:00
HOWTH-based travel software firm Datalex said it expects to deliver strong earnings growth this year even as the travel and aviation sector in which it operates remains challenged.
Datalex said yesterday that it expected to post strong growth in earnings before interest, tax, depreciation and amortisation (EBITDA) in 2012.
It added that it is meeting its "operational and strategic objectives" despite the challenges being faced by its customers.
They use its software platform to drive retail revenue via their websites, selling everything from insurance to hotel rooms. Aer Lingus is also one of its clients.
Datalex said that in the four months ending October 31, it continued to grow the business in line with market expectations.
"Our new business pipeline is strong and growing, buoyed by the programme of 2012 'go lives' at new customers," it said.
Financier Dermot Desmond owns 29pc of Datalex. Pageant Holdings, the investment vehicle controlled by businessman Nicholas Furlong, has also amassed a sizeable chunk of the company.
There has been frequent speculation that the company could be acquired.
"Our expectation for 2012 is that we will deliver strong growth in EBITDA and cash generation year-on-year, while continuing to expand our customer base," Datalex said.
It also said a number of deals with airlines were expected to be announced by the end of this year.
In the first half of this year, Datalex's EBITDA rose 152pc to $2.6m (€2m) and revenue advanced 18pc to $15.7m.
The company narrowed its pre-tax losses to $181,000 from over $1.9m in the first six months of 2011.
The company has been eyeing expansion in Asia, already one of its biggest marketplaces.