FY19 revenues of €2.0m were weaker than management expected due to a small number of material contracts failing to materialise by year-end. However, those contracts did not disappear and investment in sales in FY19 led to a strong start to H120 (management estimates H120 revenues will exceed €1.5m) with momentum expected to continue in H220. Recent trading has highlighted the benefits of a flexible, diversified business, with the security segment (DACH-focused, government contracts) benefiting, while uncertainty is higher in the broadcast segment (international, private sector clients), despite market share gains following the exit of Verizon Volicon. However, COVID-19 uncertainties make forecasting difficult, particularly for Q420, typically the strongest quarter. With net cash of €0.5m, artec remains sufficiently capitalised and, if management can build on a strong H120, we believe there is significant upside to the shares.