PEERTV PLC : PTV Year End Trading Statement

PeerTV PLC ("PeerTV" or "the Company") Year End Trading Statement

10th December 2013
PeerTV (AIM:PTV), a provider of technology solutions for the OTT (TV over the internet) market and PCB (printed circuit board) production solutions, wishes to provide the market with a year end statement of the Company's businesses.
As previously reported Digitek is showing solid acceptance by new customers and steadily increasing sales volumes. During the final quarter of the year sales have been running at approximately NIS 1 million (about £180,000) per month, 150% higher than in the same period in 2012.
At least three major new customers have come on stream in the final quarter. As previously reported these include Strauss Water whose products are marketed in the UK under the "Virgin Pure improving life with Strauss Water" brand.
In addition, the Digitek facilities have undergone an audit by one of Israel's
leading military contractors. This is expected to result in first orders in Q1 2014.
Digitek management is forecasting rising sales in 2014 and believes that the company has the capacity to serve its existing customers at a level of 1.5 million NIS per month, with a modest level of capital investment.
The company can see a fairly clear path with its existing customers to achieve a significant growth in monthly sales later in 2014. A more substantial capital investment will be required to achieve this and the company will be seeking debt / equity and supplier financing.
The activities of Digitek's new power engineering and design department have been an important factor in attracting additional customers. The department has developed an innovative solution whereby the power source is now an integral part of the SMT board. This feature provides customers with significant cost savings and is not otherwise available in the market, giving Digitek an important competitive advantage.
The Peer TV business has received encouraging feedback from its major customer as customer testing of its Android based Set Top Box progresses. However, confirmation of further orders is not expected before January / February 2014.
The marketing of the PTV product is being refined with the focus being on sales prospects which can take the product substantially as designed. This is allowing a significant reduction in overhead costs. Many of the leads generated earlier in the year demanded considerable customisation, creating excessive pressure on PeerTV's technical R&D resources.
The group balance sheet has been strengthened by the conversion of about

£420,000 of current liabilities and other debt into equity. The board believes that this reduction of debt will make it easier to raise the investment required to facilitate the growth of both businesses.

Digitek is expected to be cash positive from operations in Q4 2013 and the Company overall is projecting to be cash positive from operations by Q2 2014. However interest payments, the repayment of legacy debts and new capital expenditure for expansion will continue to require the Company to seek external financing in 2014.
Further enquiries: PeerTV Plc
Eitan Yanuv, Chairman [phone]
Libertas Capital Corporate Finance Ltd
Thilo Hoffmann/Sandy Jamieson [phone]