8th Mar 2019 14:30
LONDON (Alliance News) - Video analytics firm Big Sofa Technologies Group PLC said Friday cost-cutting measures and rising revenue helped to reduce 2018 losses, with more progress expected in 2019.
Furthermore, the firm said it planned to raise GBP1.0 million via share subscriptions.
In 2018, pretax loss improved to GBP3.7 million from GBP4.1 million the year prior. This was after revenue rose to GBP1.7 million from GBP1.3 million the year before.
"My priority on becoming chief executive officer in November 2018 was to initiate a strategic review and identify areas for cost savings," Big Sofa Chief Executive Officer Kirsty Fuller said.
In 2018, operating expenses fell to GBP4.7 million from GBP4.9 million the year prior. The firm expects 2019 costs to be a further GBP1.0 million lower than those reported in 2018.
"With a significant R&D programme having completed at year-end, I was able to initiate a programme of material annualised cost savings with a restructuring of the entire team, a refocus on streamlined, efficient processes and a sharpening of the selling proposition," Fuller added. "As a result, we began 2019 as a stronger, leaner business."
Big Sofa does not pay a dividend.
The company will launch a GBP880,000 subscription by the issue of 22.0 million shares at 4.0 pence each. This includes GBP280,000 of conditional subscription by current board directors Nick Mustoe, Kirsty Fuller and Steven Metcalfe and former director Adam Reynolds.
Big Sofa shares were trading down 2.8% at 4.38p each.
Furthermore, a sum of GBP120,000 owed to Metcalfe Consultancy Ltd in relation to the provision of non-executive director and consultancy services will be settled by the issue of 3.0 million shares at the issue price.
After admission of the new shares, expected on April 5, the firm will have 163.8 million shares in issue.
Big Sofa will use the funds raised in the subscription toward achieving its aim of becoming a "a transformative resource within large, global organisations", it said.
Looking ahead, the company added as a result of a strategic review, if found GBP1.0 million of costs saving across the business.
"2019 is an important year for Big Sofa Technologies," Fuller continued. "It sees the company step forward confidently with a new vision, a new suite of client offerings, and a more robust and exciting technology capability."
"I believe that our three commercial pillars - Ipsos integration, direct-to-client Visual Insight System (from knowledge management to knowledge activation) and automated data extraction (machine learning) - represent a sound strategy for 2019," Fuller added. "Combined with a more agile, exciting product roadmap, a fresh visual identity, and a team and office restructuring, we have a strong recipe for success."
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