25th Jun 2019 14:40
(Alliance News) - Remote Monitored Systems PLC shares fell on Tuesday despite posting a narrowed annual loss, as the company warned Geocurve revenue is set to fall in 2019.
Shares in the survey, inspection, and monitoring firm were down 29% at 0.50 pence on Tuesday in London.
Revenue for 2018 rose to GBP857,970 versus GBP788,718 in 2017, while the company's pretax loss halved to GBP1.1 million from GBP2.2 million.
The narrowed loss came as administrative expenses fell to GBP1.1 million from GBP2.2 million the year before. Among the reduced costs were expenses related to audit & accountancy fees, PLC costs, and board costs.
The total revenue figure for 2018 was generated by survey and inspection services firm Geocurve, with GyroMetric, which provides digital monitoring and safeguarding systems for rotating shafts, not recording any revenue in the period. In 2017, Geocurve posted revenue of GBP638,203.
"Although GyroMetric did not generate any revenues in 2018, sales to new and existing customer have been achieved in 1H 2019 and the board remains excited by the opportunities at GyroMetric, both in the wind industry and in new sectors," the company said.
On outlook, the company said Geocurve has prioritised profitability over growth after experiencing a slower than expected start.
"Cost saving measures have been implemented with the intention of becoming self-financing in 2019, albeit with revenues expected to be lower than those in 2018," said Remote Monitored Systems.
GyroMetric, which will be conducting trials for two major wind turbine manufacturers in the second half of 2019, recently signed a contract for a technical cooperation with a major UK supplier to the energy and petrochemical industries. A number of "promising" opportunities in new sectors, where lead times are typically shorter, are being pursued, the company added.
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