Published on: April 2, 2020

Per ardua, ad astra

Thruvision’s trading update to March 2020 reflects a good year which experienced a ‘material slowdown’ in order-flow in March due to COVID-19. Revenue is expected to be £8.0 million – 6% shy of our forecast, but still a very-creditable 33% up on the prior year. H2 saw continued strategic progress in key markets of aviation and “profit protection” (employers checking employees for items smuggled out of distribution centres). These sectors may exhibit some level of resilience despite COVID-19, if the Company can work via its existing in-country representatives. The impact of the pandemic on orders and product trials – and hence revenue visibility – is clearly significant and management has decided against giving guidance for the new financial year. We adjust our FY 2020E estimates to reflect the revenue and cash described in the update (Thruvision retains a healthy balance sheet) and leave numbers for FY 2021E and FY 2022E unchanged until such time that the position becomes clearer. Those latter two estimate years are obviously now subject to a very high degree of uncertainty.