2nd May 2018 12:36
LONDON (Alliance News) - Mobile Tornado Group PLC on Wednesday reported a narrowed loss on the back of increased revenue for 2017, though currency movements had a negative impact on operating costs.
Mobile Tornado posted a pretax loss of GBP2.5 million in 2017 compared to a loss of GBP3.7 million in the year before.
This comes on the back of a 25% increase in revenue to GBP2.5 million. Recurring revenue rose 13% to GBP2.1 million, and non-recurring revenue increased to GBP460,000 from GBP190,000 due to more installations being carried out.
Mobile Tornado is a provider of instant communication mobile apps to the enterprise market.
The company's costs are denominated in Israeli shekels, it said, and while underlying costs were largely flat year-on-year on a reported basis they rose 7% to GBP4.2 million due to a weaker sterling in the first half of 2017.
Mobile Tornado said it was a year of "significant progression". It secured contract wins with two major mobile network operators in Israel and renewed a contract in Canada, while also completing the development of a new instant communication platform.
Looking ahead, the company said the market is moving in a "favourable" direction, and it added it is "very well" positioned to take advantage of this.
Chairman Jeremy Fenn said: "The market continues to move in a favourable direction and supports the investment we have made in our technical platform. There is an increasing appetite for companies and public agencies to explore push-to-talk over cellular as an alternative to their traditional radio systems. The lower cost of ownership, and enhanced functionality, are providing very compelling reasons for switching."
Fenn continued: "The board believes the company is very well positioned to take advantage of these market dynamics. We believe we now have the leading offering within the business-critical market and are uniquely placed to capture non-mission-critical enterprise customers seeking a lower cost solution with the superior functionality benefits that PTToC offers."
Shares were down 4.2% on Wednesday at 5.75 pence each.
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