12th May 2016 07:55
LONDON (Alliance News) - Mobile Tornado Group PLC Thursday said it has appointed Avi Tooba as chief operating officer as it reported a narrowed pretax loss for 2015, but guided for "at least" flat revenue for the year ahead.
The mobile applications provider said that as it has moved into 2016, recurring revenues from its tier 1 mobile virtual network operator customers have continued to grow more slowly, and as such this part of its business remains below market expectations. Additionally, whilst it sees opportunities in the homeland security markets, contracts in these markets are difficult to predict with any certainty.
As such, Mobile Tornado now expects its 2016 revenue will be "at least in line" with 2015.
The company reported a pretax loss of GBP2.0 million for 2015, narrowed from GBP3.2 million in 2014, on revenue of GBP2.3 million, up from GBP1.7 million. In particular, recurring revenue rose 33% in the year, and as this revenue is higher margin, this helped to boost gross profit.
"We were satisfied with the performance of the business in 2015 with the financial results showing a marked improvement over the prior year," said Chief Executive Officer Jeremy Fenn in a statement.
"The business has made good progress and whilst we are frustrated that the momentum is not quite at the levels we would have liked, there are grounds for optimism given the customers we are working with and the opportunities currently presented. We look forward to the rest of the year with cautious optimism," Fenn added.
Tooba has been appointed as chief operating officer with immediate effect. He was previously senior director of engineering at Motorola Solutions Inc.
Shares in Mobile Tornado were down 14% at 1.85 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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