28th May 2020 12:11
(Alliance News) - Touchstar PLC on Thursday reported an improved performance for 2019, as it highlighted its strong order book going into the period of disruption caused by the Covid-19 pandemic.
Shares in the mobile data software firm were trading 28% higher at 44.80 pence each in London.
For 2019, Touchstar posted revenue of GBP7.1 million, up 3.2% from GBP6.9 million reported for 2018. Pretax loss was GBP829,000, narrowed from GBP1.3 million the year prior.
Annual margins increased to 54% from 51%, reflecting the continued move to a more software and solution-orientated sale.
The improvement in 2019 outcome was attributed to the company's new products and services, which resulted in a higher level of shipments to customers by the year-end than had been anticipated. Cost cutting measures and the sale of its loss-making airline business Onboard also contributed positively.
Turning to 2020, the Manchester-based company said that the first-quarter of 2020 was profitable. It stated that the profitable trend continued into April, adding that it expects the momentum it had in place pre-pandemic to result in a favourable outcome at the half year.
Touchstar highlighted that it serves sectors which are classified by the UK government as essential services with revenue from those organisations accounting for 70% of revenue.
"The balance sheet remains robust, we have no net debt and cash in the bank of a similar level to just before the Covid-19 crisis impacted the UK economy. To date we have outperformed the roadmap we put in place as this crisis unfolded, the short-term effect on Touchstar has been less severe than we had planned to expect," said Executive Chair Ian Martin.
As at the end of 2019, Touchstar had net cash of GBP850,000. Its order book stood at GBP1.2 million.
By Ife Taiwo; [email protected]
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