28th Jun 2016 10:51
LONDON (Alliance News) - CloudTag Inc on Tuesday reported a widened pretax loss in the first half of its financial year, as it raised funds and ramped up for a full commercial release of its product in the UK and Europe.
For the half year to end-March CloudTag reported a pretax loss of GBP2.2 million, widened from a pretax loss of GBP494,000 the year before. This was primarily as a result of higher administrative costs and research and development expenses.
It did not produce revenue in either period.
The company, which makes technology products for the health and fitness markets, launched its first product set at the Consumer Electronics Show in Las Vegas in January.
During the period, CloudTag raised GBP1.1 million in equity, and a further GBP751,430 following the half year end, as it continued to reduce its indebtedness and invest in research and development.
"I am delighted by the progress our CEO Amit Ben-Haim has achieved in such a short period of time. The company has exceeded the targets set out in the strategy devised by Amit and is now able to accelerate growth as we come to launch the product and focus on driving sales and distribution globally," said Chairman Tony Reeves in a statement.
"This growth shall be further supported with the expansion plans for the executive management team as new business development and sales directors are set to join as well as additional members for our R&D team," Reeves added.
Shares in CloudTag were down 5.5% at 5.05 pence Tuesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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