21 March 2014
Starcom PLC
("Starcom"or the "Company")
Update on Trading Statement
Following the announcement of its pre-Close Trading Update of 15 January, Starcom (AIM: STAR), which specialises in the development of wireless solutions for the remote tracking, monitoring and protection of a variety of assets and people, issues the following update.
A long standing distributor for Starcom in Ukraine which entered into purchase orders in December 2013 to purchase 4,000 WatchLock units for US$1million has advised the Company that due to the recent political and economic upheaval in the region there is now doubt over its ability to honour these orders with the Company.
Therefore, due to the uncertainty of the situation, and following consultation with its auditor, the Company has taken the prudent accounting measure of deferring recognition of these revenues from the 2013 accounts. The Company is finalising its accounts on this basis and the full accounting implications on this loss of revenue will be detailed in its audited results for the year ended 31 December 2013.
The WatchLock units are still residing in a warehouse in Israel, allowing the Company to hold them for the customer until a later date, or to sell them to another customer.
The Company still intends to announce its final results for the year ended 31 December 2013 by 31 March 2014 and will update shareholders further on this situation.
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For further information please contact: |
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Starcom plc |
Northland Capital (Nomad) |
Northland Capital (Broking) |
Leander (Financial PR) |
Michael Rosenberg Avi Hartmann Eitan Yanuv |
Luke Cairns Edward Hutton Lauren Kettle |
John Howes Alice Lane |
Christian Taylor-Wilkinson |
Tel: 07785 727595 +972 543070103 +972 36199901 |
Tel: 020 7382 1100 |
Tel: 020 7382 1100 |
Tel: 07795 168 157 |