27th Sep 2018 12:48
LONDON (Alliance News) - Mobile Tornado Group PLC said on Thursday it saw a slightly narrowed loss for the first half of 2018, due to lower costs and double digit revenue growth.
In addition, the mobile communications services company entered a revolving loan facility agreement with technology holding company InTechnology PLC.
A loan facility for up to a maximum of GBP300,000 has been agreed, and any new amounts drawn down will be subject to a 2.0% facility fee and bear interest at a rate of 10% per annum.
The additional capital will support the financing of Mobile Tornado's sales pipeline under its Capex Model, specifically where the company will need to fund the hardware before placement with the customer.
Mobile Tornado reported a pretax loss of GBP1.1 million for the six months to the end of June, narrowed slightly from GBP1.4 million the year before, on revenue that rose to GBP1.2 million from GBP1.1 million.
Operating expenses fell to GBP1.8 million from GBP2.1 million the prior year, due to the appreciation of Sterling compared to the previous period.
Revenue was helped by increased non-recurring revenues, comprised of installation fees charged by the company and professional services, increased to GBP210,000 from GBP70,000.
During the period in April, Mobile Tornado won a contract with Israeli mobile network operator Partner Group to provide push to talk over cellular solutions to Partner Group's customers.
"The directors consider that the outlook is positive and these are exciting times for the group, as the efforts of the past 12 months begin to deliver real sales growth that should be demonstrated in the second half of the year," said Chairman Jeremy Fenn.
Shares in Mobile Tornado were down 5.2% at 4.03 pence on Thursday.
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