Results of AGM

Thursday, 29 December 2016

SimiGon, a global leader in providing simulation solutions, announces that at the Company's Annual General Meeting held earlier today all resolutions were duly passed.

View complete announcement on London Stock Exchange Website

Notice of AGM

Thursday, 24 November 2016

SimiGon today announces that the Annual General Meeting of the Company is to be held at 9:00 a.m. Eastern Standard Time (2:00 p.m. GMT) on Thursday 29 December 2016 at 111 S. Maitland Avenue, Suite 210, Maitland, Florida 32751, USA (the "Meeting").

The Notice of Annual General Meeting (the "Notice") will be mailed to shareholders at the close of business on Thursday, 1 December 2016 and an electronic copy of the Notice of Annual General Meeting is available at the Company's website.

A shareholder, who would like to attend the meeting in person or join via conference call using the dial-in details below, should follow the instructions as specified in the Notice of Annual General Meeting.

International dial-in number: +1 712 432 1620

Access code: 888780#


Holdings in Company

Wednesday, 5 October 2016

View complete announcement on London Stock Exchange Website

Exercise of Options and Issue of Equity

Tuesday, 27 September 2016

Further to the approval granted at the Annual General Meeting on 30 December 2015 in relation to the 2014 annual share based bonus to Non-executive directors and further to the exercise of options by Mr. Ami Vizer (Chief Executive Officer of the Company), application has been made for 401,035 new ordinary shares of 0.01 NIS each in the Company ("Ordinary Shares") to be admitted to trading on AIM ("Admission").

The application includes: (i) the allotment of 25,000 Ordinary Shares to each of the outgoing external directors, Dr. Vered Shany and Mr. Nevat Simon; (ii) the allotment of 25,000 Ordinary Shares to Mr. Eitan Cohen (Non-executive director); (iii) the allotment of 25,000 Ordinary Shares to Mr. Alistair Rae (Non-executive Chairman); and (iv) the allotment of 301,035 Ordinary Shares following the exercise of options by Mr. Ami Vizer (Chief Executive Officer of the Company).

Pursuant to the issue of the new Ordinary Shares: (i) Mr. Ami Vizer has a beneficial interest in 11,365,489 Ordinary Shares, representing 22.11 per cent. of the total issued share capital of the Company; (ii) Mr. Eitan Cohen has a beneficial interest in 97,000 Ordinary Shares, representing 0.18 per cent. of the total issued share capital of the Company; and (iii) Mr Alistair Rae has a beneficial interest in 227,249 Ordinary Shares, representing 0.44 per cent. of the total issued share capital of the Company.

The new Ordinary Shares will rank pari passu with the Company's existing Ordinary Shares and Admission is expected to become effective on 3 October 2016.  Following this issue of new Ordinary Shares, the Company has 51,394,189 Ordinary Shares in issue and holds none in treasury. Accordingly, the total number of voting rights in the Company is 51,394,189 and this figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company.

Enquiries:

SimiGon Ltd
Ami Vizer, Chief Executive Officer
Efi Manea, Chief Financial Officer

Tel: +1 (407) 951 5548

finnCap (NOMAD & Broker)
Stuart Andrews / Scott Mathieson (corporate finance)

Tel: +44 (0) 207 220 0500

View complete announcement on London Stock Exchange Website


Interim Results for the six months ended 30 June 2016

Monday, 19 September 2016

Growth in net profit by 5% YoY to $0.83 million and EPS of $0.02

SimiGon Ltd, a global leader in providing simulation solutions, announces its interim results for the six months ended 30 June 2016.

Financial Highlights

Operational Highlights

New major awards:

Delivering on long term contracts:

Post period-end event

Ami Vizer, Chief Executive Officer of SimiGon, said: "Continuing to execute our growth strategy, I am pleased to report another period of increased profitability. SimiGon recorded net profit of $0.83 million as compared to $0.79 million in H1 2015 and revenues of $3.29 million in the first half of 2016 (H1 2015: $3.46 million). During the course of this first half of 2016, we have been awarded with new high value contracts and further established our position as a prime contractor providing a highly valued solution to our customers".

"Looking ahead, SimiGon will continue to leverage its position in the market and its global footprint to build new partnerships, expand its customer base, and target large contracts. The Company is continuing its transition into high value, long term license contracts in order to meet market requirements. Though it may lead to lower revenue from these contracts in the early years, it is expected to give SimiGon much better revenue and profits visibility in the long term. Having unique distributed training systems and proven technology applicable for multiple domains and devices together with a business model that allows creating partnerships and relationships with Blue Chip corporations, the Board enters the second half of 2016 with expectations to deliver growth over the long term".

Enquiries:

SimiGon Ltd
Ami Vizer, Chief Executive Officer
Efi Manea, Chief Financial Officer

Tel: +1 (407) 951 5548

finnCap (NOMAD & Broker)
Stuart Andrews/Scott Mathieson (corporate finance)

Tel: +44 (0) 207 220 0500

Overview

SimiGon is pleased to report another period of increased profitability as a result of recurring revenues from existing strategic partners and new business being won. SimiGon recorded net profit of $0.83 million as compared to $0.79 million in H1 2015 and revenues of $3.29 million in the first half of 2016 as compared to $3.46 million in the first half of 2015.

SimiGon had received two major awards in the first half of 2016; these awards have improved SimiGon's position as a technology and services provider for large simulation training programs. A long term supplier of training and simulation technologies for the world's largest military aviation training programmes, the Company is simultaneously focused on achieving growth into vertical markets such as civil aviation training, industrial skills training and soft skills training.

SimiGon's capture of a growing share of the global market for simulation and training projects is allowing the Company to expand project scope and increase potential revenues. Competing as a Prime Contractor, Supplier or Strategic Partner, the Company is focused on participating in more business opportunities to achieve growth and advance its technological capabilities.

SimiGon is working to be consistently positioned as a strategic player in programs that will assist its long term growth. SimiGon's revenue mix of new contracts and support contracts provides the Company with the confidence that it will succeed in achieving growth over the years.

Operational Review

SimiGon has continued to consolidate its position as the technology provider of choice for large simulation training programs and as a strategic supplier of training and simulation technologies for the worlds' largest military flight training programmes. SimiGon is dedicated to developing strategic, simulation-based training programs. This development is allowing expansion into vertical markets, including civil aviation training and industrial training, as well as boosting long term growth.

SimiGon has been delivering on all of its major contracts during the first half of 2016 and continued to increase its visibility of the market and of new opportunities available to it as a prime contractor and strategic partner. The Company continues to benefit from direct relationships with the end users and, as the business and our reputation grows, SimiGon will be in a stronger position to compete for and secure far larger contracts.

Delivery of major contract as prime contractor

SimiGon announced in June 2013 that it had signed a contract valued at $6.7 million for a major training program. This was a milestone contract for the Company in terms of the geographic region, the contract value and the programme scope.

As noted on SimiGon's 2015 full year financial results, delivery under this contract has continued on a slower timetable than expected as a result of the client requesting SimiGon to provide a number of deliverables outside of the original contract scope. As part of SimiGon's drive to support all of its clients, SimiGon has been prepared to agree to these new demands and has been meeting the delivery milestones during the first half of 2016. The Company looks forward to meeting all remaining delivery milestones during the course of H2 2016.

The Company expects that its technology and performance will put it in a good position to be selected for potential subsequent phases of the programme.

Expansion into civil aviation market

In May 2016, SimiGon signed an exclusive five-and-a-half-year contract (the "Contract Period") to deliver SIMbox based training solutions to a leading provider of training solutions for the civilian aviation industries in the Far East (the "Contract"). Under the terms of the Contract, SimiGon will be paid $7.9 million to license its SIMbox software over the Contract Period, with a minimum of $1.4 million per year starting this year.

As indicated, this is another major contract outside of the defence industry and it will further expand the Company's growth strategy to diversify its product offering and increase its addressable market. The Contract underlines SimiGon's ability to penetrate a much larger market and can be a stepping stone to securing additional business in civilian aviation industry through similar opportunities.

New contract wins

SimiGon announced in June 2016 that it has received a Contract Winning Notice for a $2 million contract from the Israeli Air Force ("IAF") to provide new F-16 maintenance trainers ("the Contract Winning Notice") to be delivered within a period of 18 months once the expected contract is signed.

By adding a new solution for virtual maintenance training to its product offering, SimiGon will be able to build upon its past performance to succeed in a growing market for aircraft technician virtual training. The same technology, training aids and methodology delivering advanced training for aircrew is now leveraged for maintenance staff training, saving organizations considerable time and money with a single training technology backbone. This comprehensive solution is already being marketed worldwide and will contribute to the Company's market share.

The expected contract with the IAF includes SimiGon's SIMbox software technology customized to train F-16 maintenance technicians in a virtual environment. Up to 60 trainees across two classes will be provided with personal training stations, allowing them to learn avionics and front line maintenance with a Virtual Instructor and a self-paced syllabus using high fidelity simulation. SIMbox is already used by several air forces to train their pilots in the most advanced programs and platforms and the same technology and concept will now also be used to train the aircrafts' maintenance teams.

The Contract Winning Notice underscores SimiGon's successful entry into the military fixed wing training market and further strengthens the Company's strategic market position which should lead to similar opportunities in the future.

Long term contracts

The Company's long term partnerships have blossomed into additional business opportunities and offer good revenue visibility. Many partnerships are expected to continue with additional purchases through 2016 and beyond.

SimiGon is now in its eighth year of providing support to Lockheed Martin's JSF training program and additional licenses and ongoing maintenance support agreements are part of the ongoing, long term partnership.

The Company is now in its seventh year of providing support to the UK Military Flying Training System. The Company continues to deliver under this long term contract, exceeding partner and customer expectations of SimiGon's technologies and their performance.

The long term recurring revenues from SimiGon's partnership with Check-6 Inc., one of the leading providers of training solutions to the energy and mining industries, have continued during 2016. Throughout this contract, SimiGon has successfully delivered SIMbox software and the Company is bullish on extending this partnership with Check 6 in the future.

The maintenance and support contract from the USAF for the SIMbox-based T-6A Modular Training Devices SimiGon delivered as part of a June 2011 contract demonstrates the long term nature of the relationship with this strategic customer. This relationship is also expected to grow and positively impact future earnings.

SimiGon maintains its close relationship with a major existing European customer that it has been working with since 2009. SimiGon's technology is now being operated on a daily basis in 3 different training centers and is receiving high customer satisfaction reviews. SimiGon is confident that this relationship will continue and lead to additional orders in the future.

SimiGon has been providing successful solutions for Unmanned Aerial Systems (UAS) training for a leading provider in the small tactical unmanned aircraft systems. SimiGon's technology is used to support initial operator training in classrooms as well as advanced operational training. SimiGon will continue to work with this partner to increase its footprint in the growing UAS arena.

Financial Performance

For the reasons set out above revenues for the six months ended 30 June 2016 were $3.29 million as compared to $3.46 million for the six months ended 30 June 2015. Gross profit for the six months ended 30 June 2016 was $2.58 million, as compared to $2.59 million for the six months ended 30 June 2015. Accordingly, gross margin increased to 78% for the six months ended 30 June 2016 as compared to 75% for the six months ended 30 June 2015. Net profit before tax for the six months ended 30 June 2016 improved by 2% to $0.81 million as compared to $0.79 million for the six months ended 30 June 2015 and net profit for the six months ended 30 June 2016 increased by 5% to $0.83 million as compared to $0.79 million for the six months ended 30 June 2015.

Total operating expenses for the six months ended 30 June 2016 decreased by 1% to $1.79 million as compared to $1.8 million for the six months ended 30 June 2015. Research and development expenses for the six months ended 30 June 2016 increased by 9% to $0.8 million as compared to $0.74 million for the six months ended 30 June 2015, mainly due to an increase in salary expenses. Marketing expenses for the six months ended 30 June 2016 decreased by 13% to $0.5 million as compared to $0.57 million for the six months ended 30 June 2015 and general and administration expenses for the six months ended 30 June 2016 decrease by 2% to $0.48 million as compared to $0.49 million the six months ended 30 June 2015.

The Company has recorded net income tax of $0.02 million for the six months ended 30 June 2016 mainly as a result of updating its deferred tax asset created in 2015 in relation to the expected utilization of carry forward losses against expected income in future years.

As a consequence of the factors above operating profit for the six months ended 30 June 2016 amounted to $0.79 (H1 2015: 0.79 million) and net basic and diluted earnings per share of $0.02 (H1 2015: Basic and diluted earnings per share $0.02).

As at 30 June 2016 the Company had liquid cash of $8.4 million as compared to $7.4 million for the year ended 31 December 2015 and trade receivables of $3.12 million as compared to $3.72 million for the year ended 31 December 2015. $0.78 million of the year end trade receivables balance has been collected since 30 June 2016.

In light of the strong cash position and further to the Company's declared intention to pay an annual dividend announced in the full year financial results for 2015, a dividend of 0.6 cents per share, equating to approximately 15% of the Company's earnings per share and to approximately 17.2% of the Company's net profit as of December 31, 2015 was paid to shareholders on 27 May 2016.

Outlook

Achieving its strategic milestones, SimiGon continues to deliver strong profitability. The Company's goal of being a prime contractor and technology provider for major, long term simulation training programmes is being executed and SimiGon continues to secure sizable new contracts while expanding its customer base.

To meet market requirements, SimiGon will continue its transition into high value, long term license contracts during 2016. Though it may lead to lower revenue from these contracts in the early years, in the long term, it is expected to provide the Company with much better visibility of revenue and profits.

The Board of Directors enters the second half with expectations to successfully deliver long term growth.

View complete announcement on London Stock Exchange Website


Holdings in Company

Tuesday, 13 September 2016

View complete announcement on London Stock Exchange Website

Notice of Results

Tuesday, 23 August 2016

SimiGon, a global leader in providing simulation solutions, will announce the Company's interim results for the six months ended 30 June 2016 on Monday, 19 September 2016.

View complete announcement on London Stock Exchange Website


Posting of Annual Report and Accounts

Tuesday, 28 June 2016

SimiGon announces that its Annual Report and Accounts for the year ended 31 December 2015 has been posted to shareholders. An electronic copy of the Annual Report and Accounts is also available on the Company's website at:
SimiGon 2015 Annual Report

View complete announcement on London Stock Exchange Website


SimiGon received a Winning Notice for a $2 million contract with the Israeli Air Force for F16 Maintenance Trainers

SIMbox technology expanded into new areas

Monday, 20 June 2016

SimiGon, Ltd. (LSE: SIM), a global leader in modelling, simulation & training solutions, is pleased to announce that it has received a Contract Winning Notice for a $2 million contract from the Israeli Air Force ("IAF") to provide new F16 maintenance trainers to its technician school in Haifa ("the Contract Winning Notice"). By adding a new solution for virtual maintenance training to its product offering, SimiGon can now provide training solutions for both aircrew and technicians. The same training aids and methodology can be utilized by both sets of end users, saving time and money. This comprehensive solution will be marketed worldwide and will contribute to growing SimiGon's market share.

The expected contract with the IAF includes the procurement of SimiGon's SIMbox software technology that will be implemented to train F16 maintenance technicians in a virtual environment. Up to 60 trainees across two classes will have personal stations that will allow them to learn avionic and front line maintenance with a virtual instructor and a self-paced syllabus using hi fidelity simulation. SIMbox is already used by several air forces to train its pilots in the most advanced programs and platforms and the proven technology and concept will now also be used to train the aircrafts' maintenance teams.

Once the expected contract has been signed it is due to be delivered within 18 months and its expected revenue contribution has already been factored into management's expectations for the year ended 31 December 2016. The expected contract should also contribute to improved revenue visibility for FY 2017 and beyond.

The Contract Winning Notice underscores SimiGon's successful entry into the military fixed wing training market and strengthens the Company's market leading offering and positioning which should lead to similar opportunities in the future.

SimiGon President & CEO, Ami Vizer, said: "We are excited to receive this Contract Winning Notice which will lead to new business opportunities and will support our existing revenue channels. This Contract Winning Notice opens a new market for SimiGon in the provision of maintenance simulation training solutions in addition to its advanced training solutions for pilots. The award also indicates the IAF's strong belief in our SIMbox technology capabilities, not only for its pilot training but also for supporting its new vision for technician and maintenance staff training".

View complete announcement on London Stock Exchange Website


SimiGon awarded 5.5 year contract worth $7.9 million for civilian aviation training solutions in the Far East

Tuesday, 3 May 2016

SimiGon (LSE: SIM), a global leader in providing simulation solutions, is pleased to announce that it has signed an exclusive five-and-a-half-year contract (the "Contract Period") to deliver SIMbox based training solutions to a leading provider of training solutions for the civilian aviation industries in the Far East (the "Contract").

Under the terms of the Contract, SimiGon will be paid $7.9 million to license its SIMbox software over the Contract Period, with a minimum of $1.4 million per year starting this year. The revenue contribution from this contract was already factored into management's expectations for the year ended 31 December 2016. It also will contribute to improved revenue visibility for FY 2017 and beyond.

This is another major contract outside of the defense industry and it will further expand the Company's growth strategy to diversify its product offering and increase its addressable market. The Contract underlines SimiGon's potential to access a much larger addressable market and has the potential to enable SimiGon to expand further into other civilian aviation industries with similar opportunities.

SimiGon President & CEO, Ami Vizer, said: "This Contract is part of SimiGon's strategy to focus on long-term, high value, stable license contracts which provide better revenue and profit visibility rather than on single lump sum license sales. We are excited to be awarded this Contract which strengthens our position in the civilian aviation sector; a sector which we strongly believe has significant growth potential. We are delighted to be working alongside a leading regional provider of training solutions to the civilian aviation industries and who have a clear vision of how our technology can leverage their current and future businesses".

View complete announcement on London Stock Exchange Website


Audited full year results and annual dividend declaration

Monday, 18 April 2016

SimiGon Ltd (LSE: SIM), a global leader in providing simulation and training solutions, is pleased to announce its audited full year results for the year ended 31 December 2015.

Financial Highlights

Operational Highlights

New major contract awards:

Delivering on all long term contracts: 

Ami Vizer, Chief Executive Officer of SimiGon, stated: "SimiGon is pleased to report another year of strong operational performance and growth in profitability while continuing to execute our growth strategy. During the course of the year we have secured several new, high value contracts. We have also further established our position as a prime contractor providing a highly valued solution to our customers. Despite seeing a reduction in revenue as a result of delays in delivery under the $6.7 million contract signed in June 2013 we are encouraged to see that our net profit and profit margins have improved.  

"Looking ahead, we will continue to leverage our position in the market and our global footprint to build new partnerships, expand our customer base, and target large contracts. In line with market requirements the Company is focusing more and more on high value, long term license contracts. The transition to these long term contracts may lead to lower revenue from these contracts in the early years but is expected to give much better long term revenue and profit visibility to the Company. The Board's confidence in its ability to deliver growth over the long term is demonstrated by the Company's continued annual dividend distribution".

Enquiries:

SimiGon Ltd
Ami Vizer, Chief Executive Officer
Efi Manea, Chief Financial Officer

Tel: +1 (407) 951 5548

finnCap (NOMAD & Broker)
Stuart Andrews/Scott Mathieson (corporate finance)
Stephen Norcross (corporate broking)

Tel: +44 (0) 207 220 0500

Overview

SimiGon is pleased to report another year of increased profitability which has been achieved due to both new business being won in the period and an increase in recurring revenues from existing strategic partners. SimiGon recorded a net profit of $1.78 million in 2015 compared to $1.36 million in 2014 and revenues of $6.94 million compared to $8.32 million in 2014. The strong profit performance, despite the decrease in revenue in 2015, is mainly as a result of a change in the Company's sales mix, primarily due to its long term $6.7 million dollar contract signed in June 2013. Research and development expenses decreased from $2.38 in 2014 to $1.47 million in 2015 which is reflective of the Company's focus on cost control while still investing sufficient funds in developing its products to ensure future success.

SimiGon continued to improve its position as a technology and services provider for large simulation training programs in 2015. The Company operates as a key supplier of training and simulation technologies for the world's largest military flight training programmes and has seen further growth into vertical markets such as civil aviation training and industrial training solutions.

SimiGon's ability to capture more market share due to its participation in the largest global simulation and training projects enables the Company to increase its strategic business scope and potential revenue streams. The Company's goals are to compete as a prime contractor and strategic technology provider. Aside from being advantageous in acquiring a larger share of contracts, this enables the Company to establish a long term relationship with the end user organization.

Our market position as a preferred supplier for simulation and training technologies and solutions has been strengthened by our work in the past year. Our foundation of new contracts and support contracts, in tandem with our growth strategy, positions the Company to enjoy what the Directors believe will be a period of long term growth.

SimiGon is focused on developing strategic programs that will enhance the Company's long term growth. Our ability to grow the business and improve our financial performance is evident in our robust pipeline of new opportunities for 2016 and beyond and the greater transparency in revenue streams.

Operational Review

SimiGon is a fast-growing company, dedicated to developing strategic, simulation-based training programs. This development is allowing expansion into vertical markets, including civil aviation training and industrial training, as well as boosting long term growth. SimiGon has consolidated its position as technology provider of choice for large simulation training programs, as well as a strategic supplier of training and simulation technologies for the worlds' largest military flight training programmes. As such, our industry-leading position remains well established.

SimiGon continues to increase its visibility of the market and of new opportunities available to it as a prime contractor and strategic partner. The Company continues to benefit from direct relationships with the end user and, as the business and our reputation grows, SimiGon will be in a stronger position to compete for and win far larger contracts.

Delivery of a major contract as prime contractor

SimiGon announced in June 2013 that it had signed a contract valued at $6.7 million for a major training program. This was a milestone contract for the Company in terms of the geographic region, the contract value and the programme scope.

Delivery under this contract has continued during 2015 although on a slower timetable than expected as a result of the client requesting SimiGon to provide a number of deliverables outside of the original contract scope. As part of SimiGon's drive to support all its clients, the Company has been prepared to agree to these new demands and it looks forward to meeting the delivery milestones during the course of 2016. 

The Company expects that its strong performance will put it in a good position to win similar programmes in other countries and regions in the future.

Expansion into the civil aviation market

In June 2015, SimiGon entered the Latin American civil aviation market by establishing a subsidiary incorporated in Colombia (the "Subsidiary").

SimiGon's move into the civil aviation market has been a long term strategic goal for the Company. Taking into account the potential of the fast growing Latin American aviation market, the Subsidiary provides an ideal platform for SimiGon to enter an attractive growth sector and region.

New contract wins

In May 2015, SimiGon was awarded a five year Contractor Logistics Support ("CLS") contract by the U.S. Air Force Air Education Training Command ("AETC") to support and maintain all of the T-6A training simulators used in the training of all Remote Piloted Aircraft ("RPA") students. The first year base value of the contract is $0.33 million with a total contract value of $1.66 million over an expected period of five years.

This contract builds on the successful delivery and performance of systems provided by SimiGon as a prime contractor for the U.S. Air Force since September 2011. It strengthens the Company's position as a supplier of choice in the provision of simulation training solutions while, at the same time, demonstrating that SimiGon has the capability to develop and support the unmanned aircraft training sector which is a rapidly growing segment worldwide.

As announced in June 2015, SimiGon signed a new technical support agreement to provide Corporacion de Alta Tecnologia para la Defensa ("Codaltec"), a leading Colombian high technology corporation. Subsequent to the successful delivery and performance of SimiGon's systems and additional SimiGon software licenses purchases announced during September 2014, SimiGon will deliver under this contract, additional technical support services, as part of an industrial offset agreement.

Codaltec was formed in August 2012 by the Colombian government to meet the defense sector's needs, including training and simulation. Being one of the largest and most successful groups utilizing SimiGon's SIMbox training and simulation software platform, Codaltec is considered a highly valued strategic partner for SimiGon.

In  August 2015 SimiGon was awarded an additional $0.8 million contract from a leading provider in the small tactical Unmanned Aircraft Systems ("UAS") market in which SimiGon have supplied the underlying training system technology for the UAS program. The contract demonstrates SimiGon's ability to provide successful training solutions and highlights the Company's growing footprint in the UAS market.

In December 2015 SimiGon was awarded a $4 million contract with Booz Allen Hamilton Engineering Services, LLC ("Booz Allen ES") to provide the U.S. Air Force with support and software for the addition of multiple T-6 simulators for the RPA training simulators ("the Contract"). The initial phase of the Contract is worth $0.92 million and includes the procurement of the SIMbox software technology, T-6 model content and integration for six newly fabricated RPA training simulators.

Long term contracts

The Company has a growing portfolio of long term partnerships that continue to develop into further business and provide good revenue visibility. Many of these partnerships are expected to continue with additional purchases through 2016 and beyond.

The Company is now in its seventh year of supporting Lockheed Martin's JSF training program. Additional licenses and ongoing maintenance support agreements are part of the ongoing, long term partnership.

SimiGon is now in its sixth year supporting the UK Military Flying Training System. The Company continues to deliver under this long term contract, exceeding partner and customer expectations of SimiGon's technologies and performance.

SimiGon's partnership with Check-6 Inc., one of the leading providers of training solutions to the energy and mining industries, is also blossoming into long term, recurring revenue. Throughout this contract, SimiGon has successfully executed against its agreed deliverables. As a result, the Company is expecting this partnership to be extended with additional agreements.  

The maintenance and support contract from the USAF for the SIMbox based T-6A Modular Training Devices SimiGon delivered as part of a June 2011 contract demonstrates the long term nature of the relationship with this strategic customer. SimiGon expects this relationship to continue to evolve.

SimiGon maintains its close relationship with a major existing European customer that it has been working with since 2009. SimiGon's technology is now being operated on a daily basis in 3 different training centers and is receiving high customer satisfaction reviews. SimiGon is confident that this relationship will continue and should lead to additional orders in the future. 

SimiGon continues to provide successful solutions for Unmanned Aerial Vehicle ("UAV") training for a leading provider in the small tactical unmanned aircraft systems. Through SimiGon's ecosystem of partners worldwide, the Company's technology is used to support initial operator training in classrooms as well as advanced operational training. SimiGon continues to increase its footprint in the fast growing UAV market.

Annual dividend declaration

In light of the strong cash position and further to the Company's declared intention to pay an annual dividend, the Board intends to pay a dividend of 0.6 cents per share, equating to approximately 15% of the Company's earnings per share and to approximately 17.2% of the Company's net profit. The dividend will be payable on Friday 27 May 2016. The record date for payment of the dividend will be Friday 6 May 2016.  The ex-dividend date will be Thursday 5 May 2016.

In line with the Israeli tax ordinance and regulations, the dividend payment will be subject to 25% withholding at source unless reduced by a relevant tax treaty.

In this regard, shareholders, who have a tax withholding exemption or reduced withholding tax rate from dividend payments obtained from by Israeli Tax Authorities, should present and deliver it to the Company, together with the contact details of their stock broker, no later than the end of the business day on Wednesday 4 May 2016.

Financial Performance

Revenue for the year ended 31 December 2015 was $6.94 million, compared to $8.32 million in 2014. In terms of regional breakdown, 56% of SimiGon's revenues came from North America (2014: 50%), 27% from Europe, Middle East, South America and Australia (2014: 14%) and 17% from the Far East (2014: 36%).

Gross profit for the year ended 31 December 2015 was $5.4 million, as compared to $6.33 million for the year ended 31 December 2014. Accordingly, gross margins increased to 78% for the year ended 31 December 2015 as compared to 76% for the year ended 31 December 2014.

Net profit for the fiscal year increased by 31% to $1.78 million (2014: profit of $1.36 million).

Total operating expenses for the year ended 31 December 2015 decreased by 25% to $3.77 million as compared to $5.02 million for the year ended 31 December 2014. Research and development expenses for year ended 31 December 2015 decreased by 38% to $1.47 million as compared to $2.38 million for the year ended 31 December 2014, mainly due to lower salary expenses. Marketing expenses for the year ended 31 December 2015 decreased by 15% to $1.25 million as compared to $1.46 million for the year ended 31 December 2014 mainly due consultant's fees.

General and administration expenses for the year ended 31 December 2015 decreased by 11% to $1.05 million as compared to $1.18 million the year ended 31 December 2014 mainly due to the collection of debts for which provisions for doubtful debts were recorded in the prior period.

The Company has recorded a net income tax credit of $0.15 million for the year ended 31 December 2015 mainly as a result of creating a deferred tax asset of $0.16 million in relation to the expected utilization of carry forward losses against expected income in future years.

As a consequence of the factors above, operating profit for the year ended 31 December 2015 amounted to $1.64 million, improving upon the performance for the year ended 31 December 2014. Net basic and diluted earnings per share increased to $0.04 for the year ended 31 December 2015 as compared to $0.03 for the year ended 31 December 2014.

As at 31 December 2015 the Company had liquid cash of $7.41 million (2014: $9.44 million) and trade receivables of $3.72 million compared to $0.51 million for the year ended 31 December 2014. $1.82 million of the year end trade receivables balance has been collected since the year end.

Outlook

As a result of achieving strategic milestones, SimiGon continues to deliver strong growth in profitability. The Company's goal of being a prime contractor and technology provider for major, long term simulation training programmes is being achieved and it continues to secure significant new contracts while diversifying its markets.

The transitioning into high value long term license contracts in order to meet market requirements may lead to lower revenue from these contracts in the early years, but in the long term, is expected to give SimiGon much better revenue and profits visibility.

The Board of Directors looks to the future with expectations to successfully deliver long term growth.

View complete announcement on London Stock Exchange Website


Trading and Business Update

Thursday, 24 March 2016

The Company is pleased to report that it has continued to trade well during the year ended 31 December 2015 (the "period") and has maintained its focus on profitability. The Company has continued to deliver on its long term contracts as a prime contractor as well as securing further contracts with new and existing clients. As a result the Company expects to report profits in line with expectations. The Company expects to report revenue for the year of approximately $6.8m which is lower than the prior year mainly as a result of timetable delays with the completion of a specific contract (as described below), while still having higher margin sales channels. The Company's balance sheet remains strong with more than $7.0m of liquid cash as at 31 December 2015.

During the period, the Company successfully continued to leverage its position as a leading supplier of training and simulation technologies. This included cementing its position as a prime contractor for major, long term simulation training programmes, securing significant new contracts and diversifying its product capabilities. Furthermore, the Company has continued to meet project milestones for long term contracts, executing delivery and performance of its systems. Delivery under the $6.7 million contract signed in June 2013 has continued although on a slower timetable than expected as a result of the client requesting SimiGon to provide a number of deliverables outside of the original contract scope. As part of SimiGon's drive to support all its clients, the Company has been prepared to agree to these new demands and expect to meet the delivery milestones during the course of 2016.

SimiGon President & CEO, Ami Vizer, said: "I am pleased to report that our strong operational performance continued during 2015. SimiGon continues to cement its position as a prime contractor for major, long term simulation training programmes. During the period we have continued to strengthen our position working with valuable global partners as a supplier of choice in the provision of simulation training solutions. This base provides SimiGon with the opportunity to maintain and grow its strong financial position whilst achieving a robust pipeline of new opportunities which gives us great confidence for 2016 and beyond."

 

SimiGon will announce its preliminary results for the year ended 31 December 2015 on Monday, 18 April 2016.

View complete announcement on London Stock Exchange Website


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