10th Sep 2013 10:45
LONDON (Alliance News) - Messaging International PLC Tuesday said it swung to a pretax loss for the first half as research and development costs increased, a situation it expects to continue for the rest of the year, but sales were lifted by sales of a messaging product for mobile operators and businesses.
The messaging services firm posted a pretax loss of GBP36,896 for the period ended 30 June, after a profit of GBPP79,160 last year. However, revenue jumped 16% to GBP2.0 million, from GBP1.7 million in 2012, as the company said sales of its Messaging Gateway product to mobile operators and enterprises continued to increase.
The product enables enterprises to deliver messages for customers and employees on a wide scale and uptake is gaining momentum particularly as more clients understand its convenience and cost-saving benefits, the company said.
The company's cash position at June 30 was GBP709,391 compared with GBP1.4 million in December, but an outstanding bank loan from Mizrahi Tefahot Bank declined to GBP425,056 from GBP503,089 at the end of 2012.
Messaging International said its focus remained on increasing its presence within the telecoms sector both geographically and technologically.
Messaging shares were trading at 0.900 pence Tuesday morning, down 0.100 pence, or 10%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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