24th Sep 2015 10:01
LONDON (Alliance News) - Mobile communications services provider Mobile Tornado Group PLC Thursday reported a narrowed pretax loss for its first half, and said it "remains hopeful" that it will convert its pipeline of contracts in the second half.
For the half year to end-June, the company reported a pretax profit of GBP835,000, narrowed from a pretax loss of GBP1.3 million. Revenue rose to GBP1.2 million from GBP1.0 million as margins improved and operating expenses fell to GBP1.7 million from GBP1.9 million.
Operating costs were reduced after the company undertook restructuring during 2014, leading to lower staff levels.
Recurring revenue rose to GBP860,000 from GBP550,000 in the first half, and Mobile Tornado said it currently expects its level of recurring revenue in its second half to be similar to its first. Non-recurring revenues fell to GBP300,000 from GBP450,000 in the half year.
"With certain installation and professional services contracts successfully executed in the first half, the group continues to work hard to convert multiple additional non-recurring contracts in the second half. As ever, the precise timing of such contracts remains inherently difficult to predict, but the board remains hopeful that they will be converted by the year end," said Chief Executive Officer Jeremy Fenn in a statement.
"We have an excellent customer base of Tier 1 mobile operators, and are now being presented with numerous opportunities to work directly with major corporates and government bodies, where we can supply a dedicated communication platform," Fenn added.
Shares in Mobile Tornado were down 9.4% at 6.00 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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