16th Apr 2015 07:58
LONDON (Alliance News) - Mobile Tornado Group PLC shares were higher Thursday morning as it said it would raise funds via a conditional share placing at a premium, even as it posted a wider loss on the back of lower revenue for 2014.
Mobile Tornado, which provides instant communication mobile services to businesses, said it will raise GBP1.35 million via the placing of 22.5 million shares at 6 pence per share, a 41% premium to its closing price of 4.25 pence on Wednesday. Its shares in the company were up 36% to 5.793 pence on Thursday morning, one of the best performers in the London Main Market.
It will use the proceeds from the placing to fund its working capital requirements, it said.
In a separate statement, Mobile Tornado said its pretax loss widened in 2014 due to lower total revenue as it shifted towards a recurring revenue model. The pretax loss increased to GBP3.2 million, from a GBP2.5 million loss in 2013, as revenue fell by 34% to GBP1.8 million from GBP2.7 million a year earlier.
Recurring revenue rose 45% to GBP1.2 million from GBP0.8 million, but hardware and third party software sales plunged to GBP0.2 million from GBP1.4 million. Professional services sales also fell to GBP0.3 million from GBP0.4 million.
"The outlook remains positive for the business as recurring revenue levels continue to increase. The macro picture is also positive and we have developed one of the leading technical platforms in this space. The current year has started in line with our expectations and I look forward to further updates as the year progresses," said Mobile Tornado Chief Executive Jeremy Fenn.
By Sam Unsted; [email protected]; @SamUAtAlliance
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