28th Jun 2019 17:51
(Alliance News) - Marketing firm Veltyco Group PLC on Friday said 2018 was a very difficult year for the company, with current trading hurt by a dominance of low margin activity.
For 2018, Veltyco's revenue from continuing operations rose 18% to EUR4.7 million, with the company posting a pretax loss of EUR17.3 million.
This compares to a EUR7.6 million profit the previous year, mainly due to a EUR10.7 million impairment but also because of higher amortisation and depreciation charges. The impairment came due to a failure to recoup debts owed to the company, leading it to cease marketing activity in online financial trading and lotteries.
"This has been a very challenging period for Veltyco, with a number of operational issues to address and a changing dynamic in the markets in which we operate. We have worked hard to restructure our operating costs to match our current operations and believe we now have a more streamlined business," said Chair Paul Duffen.
"We have taken what we believe is a prudent view to provide for the full amount of monies still owed to the group which has led to the significant loss in 2018."
"Current trading has been impacted by a higher proportion of lower margin revenues activities but we remain confident we can continue to seek attractive opportunities in our chosen markets," he added.
Shares closed down 5.9% on Friday at a price of 3.06 pence each in London.
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VLTY.L