3rd Aug 2015 08:20
LONDON (Alliance News) - Adgorithms Ltd expects to meet market expectations for its full year as it posted a swing to a loss due to costs related to its admission to AIM in June, and it continued to invest significantly in its core software, Albert.
For the half year to end-June, the company posted a pretax loss of USD4.8 million, swung from a pretax profit of USD391,000, as a rise in revenue to USD12.3 million from USD6.8 million was offset by a jump in research and development costs and expenses related to its initial public offering.
The company said its revenue growth was driven by growth in video advertising and also by a number of new customers moving from testing towards a full deployment of Albert.
Albert is the company's artificial intelligence-based algorithmic technology for the advertising market. The company said that since the beginning of the year, positive momentum has continued, and it has seen strong year-on-year growth that it expects to continue into its second half.
Adgorithms listed in June, raising GBP27.0 million, of which it said around GBP22 million will be used to accelerate development of its platform, expand its geographic reach and fund some acquisitions.
"The IPO has been an extremely positive catalyst for the business and has generated increased inbound enquiries about the capability of our technology and has resulted in a number of new customers who are currently operating trials, which we expect to convert into retained clients in the near future," said Chief Executive Officer Or Shani in a statement.
"We also remain focused on exploring potential acquisition targets, particularly traditional online marketing businesses which lack technological exposure. Such acquisitions will enable Adgorithms to accelerate our growth through enlarging our client base," Shani added.
Shares were Adgorithms are untraded Monday morning. It last closed at 118.00 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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