Pelatro Shares Plummet as Payments from Customers Delayed

By Elena Vardon

Shares in Pelatro took a nosedive on Tuesday, plummeting by 47%, following the company’s announcement that payments totaling around $1.1 million have been delayed. As a result, the company is now exploring financing options as it requires additional funding in the final quarter of the year.

At 0713 GMT, Pelatro’s stock was down 3.75 pence at 4.25 pence.

The marketing software specialist revealed that it is currently facing unusual delays in the collection of receivables from four specific customers based in Nepal, Myanmar, and Bangladesh. However, the company remains optimistic as it engages in constructive talks and anticipates a positive resolution.

The London-listed firm attributed these delays to pending approval from governments to make contractual payments to a foreign entity. Moreover, disputes with two customers who are refusing to pay for products and services received have also contributed to the payment setbacks, affecting a total amount of $375,000.

While the board maintains confidence in its ability to collect the pending amounts awaiting government approval, there is no certainty regarding the timing of the funds transfer. The company is also mindful of the impact these continued delays will have on its working capital.

As of June 30, Pelatro had $700,000 in cash reserves. Additionally, the company expects to collect $2.6 million from other customers between July and September.