28th Sep 2015 07:21
LONDON (Alliance News) - Shares in PeerTV PLC were down 29% Monday morning after it reported a narrowed pretax loss for its first half, as it said it has remained loss-making since the half-year ended and continues to need to raise funds.
PeerTV has two subsidiaries, PeerTV Ltd, which develops and products hardware and software for over-the-internet television services, and Digitek Holdings Ltd, which makes electronic products and components.
For the half year to end-June the company reported a pretax loss of USD2.0 million, narrowed from a pretax loss of GBP2.7 million, as revenue rose to USD970,000 from USD793,000.
In PeerTV Ltd the company has appointed new management, and won two new European based customers who made low initial orders buy are expected to make more substantial orders in the future. During the half year it made no progress on a conditional USD1.2 million order from Kartina GmbH, it said, and as a result it has curtailed its research and development efforts in support of that customer.
In Digitek sales were at a similar level to the previous year, although there has been some improvement following the end of the half-year. Whilst the new assembly line it has deployed in this business has helped attract higher volume, higher margin customers, the company said its ability to exploit this opportunity is dependent on getting the funding to finance the purchase of components for full turnkey projects.
PeerTV has raised GBP2.2 million to provide working capital, buy its new assembly line and meet loan repayment and other commitments. IT said it will continue to need to raise funds for these same purposes.
The company said the global over-the-top video market in which it operates is growing strongly, particularly in its target sectors, but noted that its success is dependent on having "adequate financial and manpower resources to market effectively and to support an increasing customer base from a technical point of view."
Shares in PeerTV were down 29% at 0.0195 pence Monday morning, the worst performer in the AIM All-Share.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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