Pre-Close Trading Update
28 July 2021
VR Education Holdings plc (AIM: VRE; Euronext Growth: 6VR), a virtual reality ('VR') technology company, is pleased to provide an update on trading for the six months ended 30 June 2021. The Group's interim results for the six months ended 30 June 2021 are expected to be published on Tuesday, 14 September 2021.
The Board is pleased to announce that VRE continues to trade in line with market expectations. During the six months to 30 June 2021, the Group has been contracted by new and existing clients for significant events to be held inside its proprietary software platform ENGAGE.
Recent highlights include:
- ENGAGE revenue continuing to accelerate, with unaudited H1 2021 revenue expected to be c.€1.25 million, an increase of 84% on the prior year (H1 2020: €0.68 million).
- ENGAGE revenue comprises 72% of H1 2021 total revenue, an increase of 39% on the prior year (H1 2020: 33%).
- Unaudited gross margin 80% in H1 2021, an increase of 10% on the prior year (H1 2020: 70%).
- ENGAGE reached the milestone of 100 commercial customers as announced in May 2021, including Abbott Laboratories, KPMG, MongoDB, and the US State Department as recent additions.
- Expansion of ENGAGE to the Middle East for the first time through two commercial agreements in the United Arab Emirates: one for a global event for 12 international police forces and one for a commercial license with custom development work.
- BMW i Motorsport event on 1 July 2021 was hosted on the ENGAGE platform. The event was the world's first fully immersive Formula E experience, showcasing the technology, engineering and drivers of Formula E.
- A major US multinational client (with a market cap of more than US$100 billion) has signed a six-figure deal for an event to showcase its product innovation, history and sustainability initiatives.
- Strategic partner HTC Corporation ('HTC') has commenced selling its ENGAGE product, VIVE Sessions, in China, as part of a software bundle with HTC's new headset, the VIVE Focus 3, and with new HP ProBook laptops being sold in the region as announced on 12 May 2021.
- In June 2021, VRE announced the planned development of a new fully featured corporate metaverse called "ENGAGE Oasis" with the launch expected in the first half of 2022
- Oversubscribed placing announced on 18 June 2021 raising €9.0m (£7.7m) before expenses at a price of £0.16p per share. Net cash position of €9.2m as at 30 June 2021.
David Whelan, CEO, VRE, said: "Our performance in the first half of 2021 is testament to the significant progress the Group has made. ENGAGE has become a leader in the world of virtual communications shown through our growing customer base of blue-chip enterprise clients. The recent six-figure deal with an existing US multinational client demonstrates the success of our strategy of building long-term partnerships with our customers. We look forward to updating the market with more details on our performance, and the development of our corporate metaverse, ENGAGE Oasis, at the time of our interim results."
This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.
F or further information, please contact:
VR Education Holdings plc
David Whelan, CEO
Séamus Larrissey, CFO
Sandra Whelan, COO
Tel: +353 87 665 6708
Cairn Financial Advisers LLP (Nominated Adviser)
James Caithie / Liam Murray / Ludovico Lazzaretti
Tel: +44 (0) 20 7213 0880
Shard Capital Partners LLP (Joint Broker)
Damon Heath / Erik Woolgar
Tel: +44 (0) 20 7186 9952
Davy (Joint Broker & Euronext Growth Advisor)
Barry Murphy / Lauren O'Sullivan / Oisin Morgan
Tel: +353 1 679 6363
SEC Newgate (Financial PR)
Elisabeth Cowell / Robin Tozer / Isabelle Smurfit
Tel: +44 (0)7540 106 366
Notes to Editors:
VR Education (AIM: VRE; Euronext Growth: 6VR) is a virtual reality ('VR') technology company focused on becoming a leading global provider of virtual communications solutions through its proprietary software platform, ENGAGE, ENGAGE provides users with a platform for creating, sharing, and delivering VR content for education, training, and online events through its three solutions: Virtual Campus, Virtual Office, and Virtual Events.
VRE is listed on AIM in London and on the Enterprise Securities Market, a market regulated by Euronext Dublin. For further information, please visit: www.vreducationholdings.com
Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Group's current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Group's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements.
The Group cautions security holders and prospective security holders not to place undue reliance on these forward-looking statements, which reflect the view of the Group only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Group will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.