Starcom : Business update

11 January 2019

Starcom Plc

("Starcom" or "the Company")

North African Business and Trading Update, and Update re Nomad Status

Starcom (AIM: STAR), which specialises in the development of wireless solu ons for the remote tracking, monitoring and protec on of a variety of assets, announces an update on its North African business, a trading update and an update on the appointment of a replacement Nominated Adviser.

North African business update

On 7 November 2018, the Company announced details of an agreement with a distributor in a North African country which included an ini al order of Helios Advanced units plus related so ware valued at approximately US$1.1 million. Delivery of the order was expected to be made by the end of December 2018 subject to payment for the majority of the order value prior to delivery.

The distributor was subsequently informed that, although the minister of the relevant government department, that is the end user for the units, had approved release of the funds for payment of the order, there could be a delay in processing the payment by the year end. The Company nevertheless expected that payment would be made and the order delivered in early January, a er the year end but in me for the order value to be recognised in the 2018 financial statements.

Since then, however, local condi ons appear to have exacerbated the delay. Payment has now been commi ed to be made by the end of January. As a result, and assuming that payment is received as promised, the hardware component of the order value will be recognised in 2019 H1 results rather than in the 2018 financial statements. However, the related so ware component of the order value amoun ng to approximately US$0.2 million is expected to be recognised in the 2018 financial statements.

Trading update

Despite the delay in delivery of the North African order, revenues for 2018 are s ll expected to slightly exceed market expecta ons of $5.9 million but EBITDA is now expected to be approximately breakeven (subject to final audit). This is below market expecta ons of EBITDA in the region of US$485,000 but s ll represents a significant improvement over the previous year.

Notwithstanding the issues concerning the North African order, the Company's other business is progressing well, and the Company expects con nued growth in 2019. A further update will be given towards the end of January.

Nominated Adviser status update

Further to the announcement of 5 December 2018, the Company confirms that the due diligence process with the replacement Nominated Adviser is progressing and the directors believe that the Company will be in a posi on to announce the appointment of the replacement Nominated Adviser in advance of 1 February 2019.

This announcement contains inside informa on.

Enquiries

Starcom Plc

Michael Rosenberg, Chairman	07785 727 595
Avi Hartmann, CEO	[phone]
Northland Capital Partners Limited (Nominated Adviser and Broker)	020 3861 6625

Ma hew Johnson / Edward Hu on (Corporate Finance)

Rob Rees (Sales and Broking)

Peterhouse Capital Limited (Joint Broker)

Lucy Williams / Charles Goodfellow / Eran Zucker

Leander PR (Financial PR)

Chris an Taylor-Wilkinson

020 7469 0930

07795 168 157