28th Jun 2022 10:59
(Alliance News) - Mode Global Holdings PLC said on Tuesday its loss widened its in 2021 despite significant growth in revenue and its user base, as administrative costs put a damper on otherwise "pleasing" results.
Shares in the bitcoin banking app were down 13% at 7.16 pence on Tuesday morning in London.
Mode Global reported annual revenue has jumped to GBP1.3 million in 2021 from GBP450,000 the previous year as its user base more than tripled over the 12-month period. This, the company said, was driven by significant year-on-year growth in bitcoin trading.
However, this figure was dampened by a significant surge in administrative costs. The costs rocketed to GBP9.4 million from GBP3.5 million the previous year as a result of higher people costs and share option expenses.
Advertising spend also increased, rising to GBP1.4 million in the year from just GBP188,000 the year prior. Mode Global said the increased spend was done to drive growth in revenue.
Mode Global's pretax loss widened to GBP9.2 million from GBP3.9 million.
Chair Jonathan Rowland said: "These results are very pleasing. The focus in 2021 was on product development and growth. The delivery of these ambitious growth plans did see operating costs increase in 2021
"However, the revenue increases we are reporting are a clear indicator that our proposition is a compelling one. In addition, our successful oversubscribed convertible loan also shows that despite recent market volatility in crypto and tech, Mode continues to attract strong interest from the investor community."
By Heather Rydings; [email protected]
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