13th Jan 2021 10:36
(Alliance News) - Touchstar PLC on Wednesday said it is expecting to report a profit for 2020, having posted a loss the year before.
Shares in Touchstar jumped 50% in response to 74.85 pence in morning trading.
The mobile data computing services provider is expecting a "profitable outcome for the year" both before and after tax, swinging from a GBP829,000 pretax loss in 2019.
Cash generation in the year was strong, with Touchstar ending 2020 with a GBP1.6 million net cash position and GBP1.9 million of cash in the bank on December 31 compared to GBP850,000 cash at 2019 end.
Touchstar in September reported a swing to profit in the first half of 2020, with a pretax profit of GBP130,000 compared to the GBP527,000 loss reported the prior year, as administrative costs were reduced to GBP1.5 million from GBP2.1 million year-on-year.
The Manchester-based company will post its 2020 annual results in late April.
In terms of outlook, Chair Ian Martin said: "At the moment any financial prediction is foolhardy amid such raised levels of apprehension throughout the country. The fact that social disruption continues is not a surprise to us. Looking ahead I suspect that as 2021 progresses it will become more straightforward which is the key assumption to why we are optimistic of an even better outcome this year.
"I will repeat the message of my prior communication that our motivation is not to just be a survivor of this crisis, but emerge with solid finances, improved products, all our talent retained and the energy to take the opportunity in front of us - we remain on track."
By Anna Farley; [email protected]
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