Coms back in good health, says CEO
Core Redstone business performing ahead of expectations, Mark Braund claims
In his first trading update in charge, the new CEO of Coms said the VAR has returned to "good health".
The AIM-listed firm's share price sank from over £10.13 to 45 pence between February 2014 and August last year as its buy-and-build strategy unravelled.
But in January, Coms said it had resolved the "vast majority" of its legacy issues and this morning followed that with a bullish trading update for its financial year ending 31 January 2016.
EBITDA for the year "is positive and will be ahead of management expectations", Coms said.
This has primarily been driven by "continued robust trading" at its one remaining core operating division Redstone, where both revenue and operating profit have been significantly ahead of the prior year, Coms said.
Mark Braund, who recently joined the firm as CEO, said: "I am delighted to report in my first trading update as CEO that the operating business of the group is in good health following a difficult time earlier last year.
"Since the disposal of the heavily loss-making telecoms business in May 2015, we have successfully strengthened the balance sheet and reduced overheads. We have also continued to develop our core Redstone business through the investment of further capability in smart building technology, including in-building wireless, cellular and workspace management solutions, all of which is beginning to bear fruit."
In January, Coms announced it had sold the business and assets of its loss-making Media division to its management for a nominal consideration.
A dispute with former CEO David Breith, who left abruptly in March 2014, has also now been concluded, it said at the time.