Datalex is a public software developer headquartered in Dublin working mostly with airlines to develop travel software, such as booking websites. Their customers include easyJet, Virgin Australia, Air China and JetBlue and are publicly listed on Euronext Dublin. The company suffered heavy losses during the pandemic and these losses continued in 2022 when pre-tax losses more than doubled to $11.4 million (€10.4 million) due to the delayed rebound of the China market because of continued Covid lockdowns. Shares have fallen by almost 17% over the past 12 months.
Last month, Datalex said it saw a strong recovery in airline activity across all geographies in the first three months of 2023 however it seems that despite this recovery they will likely hold off on a share sale in the near term due to continued unease among existing investors about its low share price. In the meantime they are likely to seek to raise further debt finance for working capital however it is not yet known where any new debt financing would come from. One option for debt financing would come from its main shareholder and debt provider, Dermot Desmond however the current 15% interest rate is likely to rise to 18% from October.
After the Datalex AGM last Thursday Group Chairman David Hargaden and Chief Executive, Sean Corkery indicated that the company would issue a statement on plans within the next month. The company has recently renewed contracts with key existing customers JetBlue, Air China and Air Transat and signed a deal with LatAm Airlines. Chief Executive, Sean Corkery recently indicated that the company was beginning to move away from building bespoke systems for airlines and was focusing on more ancillary revenues. It is hoped this shift will see turnover doubling to almost $47 million by 2026.
