Datalex, which offers digital commerce and retail solutions for the travel industry, has issued a trading update saying that performance for the first four months of 2017 have been in line with the company's expectations.
In advance of its agm on Tuesday, the company said: “We are confident that we will deliver adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) growth of 15 to 20 per cent for full year 2017.”
The Dublin-headquartered company added that their relationship with German airline Lufthansa will begin generating revenue in 2018. "Our new business pipeline is strong and growing. We are pursuing a number of new opportunities and expect to announce further signings during 2017," the update said.
Double workforce
In response to demand for the company’s ecommerce platform it announced that it opened a new centre of excellence in Manchester. Datalex expects to double its current workforce of 30 at that centre over the next 18 months.
The company also updated investors on its relationship with JetBlue Technology Ventures. The partnership announced in March has the aim of helping early stage start-ups “that could ultimately be integrated into the Datalex digital commerce platform, for use by all our customers”.
In a note to investors, Davy Research said: “Datalex has made a solid start to what will likely be its eighth consecutive year of double-digit EBITDA growth and this morning’s statement is reassuringly straight forward.”
“Management expects further signings during 2017 and we believe that they will act as key catalysts for the stock – particularly given the scope for new signings to include Tier 1 airlines”, the stockbroker added.
Current Datalex customers include Aer Lingus, Air China and Lufthansa.
