30th Sep 2014 10:42
LONDON (Alliance News) - Fitbug Holdings PLC said Tuesday that the launch of its KiQplan digital coaching product in November leaves it well placed to continue developing its products and pursue legal action against Fitbit Inc, as it posted a widened loss in its first-half.
The company posted a pretax loss of GBP1.6 million, widened from a loss of GBP1.0 million a year before, as revenue improved to GBP914,000 from GBP461,000, but this was offset by higher cost of sales, operating and administrative expenses, said Fitbug.
These higher costs are a result of increased investment in developing KiQplan ahead of launch, as well as legal and professional fees to support its legal action against Fitbit.
Fitbug is pursuing legal action against Fitbit over allegations of trademark infringement, unfair competition and unfair business practices. It has asked the court to order Fitbit to permanently cease its use of the Fitbit trademark. A trial has been set for February 9, 2015.
Revenue growth was driven by increased interest in wearable technology. Ahead of the launch of KiQplan in the US in November the company has agreed to a further loan of GBP600,000, repayable by end-July 2015. The loan comes from The Kirsh Group via NW1 Investments Ltd.
Shares in Fitbug were trading up 5.9% at 0.450 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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