9th Apr 2020 19:02
(Alliance News) - Mobile Tornado Group PLC on Thursday reported improved earnings for 2019 as revenues rose and costs reduced.
The stock closed 19% higher at 3.50 pence each on Thursday in London.
The communication services provider posted 2019 revenue of GBP3.5 million, rising 16% from GBP3.0 million in 2018. Pretax loss narrowed to GBP1.0 million from GBP1.9 million the year prior.
The rise in revenue was attributed to non-recurring revenues increasing by 50% to GBP1.4 million from GBP930,000. Operating expenses reduced to GBP3.5 million from GBP3.9 million.
No dividend was declared, unchanged from the year prior.
Looking ahead, Mobile Tornado said it expects the Covid-19 outbreak to only have a "limited impact" on its engagement with partners and costumers. It also noted that emergencies typically result in countries needing a reliable communication system to assist coordination.
"We are in specific discussions with our partners in all territories to understand how our systems can assist their customers. We are in public safety tenders for emergency services end users in three continents for the first time and through the work we have done with our reseller partners in Africa and South America, I am confident we will see increases in recurring revenues over the coming months, said Chair Jeremy Fenn.
"However, whilst the board remains extremely optimistic about the prospects of the group, it cannot be known with any certainty at this stage what impact the Covid-19 pandemic and resultant restrictions being imposed by governments will have on Mobile Tornado's trading for the current financial year," he added.
As at the end of 2019, Mobile Tornado had cash of GBP260,000 and net debt of GBP8.62 million.
By Ife Taiwo; [email protected]
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