14th Apr 2016 08:30
LONDON (Alliance News) - Online advertising software company Adgorithms Ltd Thursday warned that, whilst it has seen some stability return to the market, its volumes may not return to their historic levels, as it reported a swing to a pretax loss for 2015 on investment and flotation costs.
The company reported a pretax loss of USD6.2 million for 2015, swung from a pretax profit of USD4.7 million a year before, as a rise in revenue to USD22.1 million from USD20.2 million was offset by higher research and development costs, and expenses related to the company''s initial public offering.
Adgorithms listed on AIM last June, raising GBP22.0 million.
The company had warned in October that the online advertising market it operates in has "been experiencing severe disruption", which hit its financial performance. It said Thursday it has only recently seen that market begin to stabilise, although at a more competitive environment and lower level than before.
Adgorithms said it has invested in its indirect business, and put in place a new management structure, as well as its core software product 'Albert'.
It intends to invest further in 2016, and as such, warned it expects to remain loss making in the year. However, Adgorithms said it remains positive about its medium-term trading prospects.
"There is some evidence of stability returning to the market but we are conscious volumes may not return to historic levels and will continue to impact our financial performance in the near term. We have invested in underpinning our indirect business and have put in place a new management structure to provide focus and leadership in strengthening this operation and broadening our platform base. We have seen encouraging early signs from these efforts thus far," said Chief Executive Officer Or Shani in a statement.
Shares in Adgorithms were up 1.1% at 14.40 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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