Mobile Tornado Group plc, the leading provider of instant communication mobile applications to the enterprise market, announces its results for the year ended 31 December 2017.
Financial Highlights
- Total revenue increased by 25% to £2.53m (2016: £2.02m)
- Recurring revenues increased by 13% to £2.07m (2016: £1.84m)
- Non-recurring revenues, comprising installation fees, hardware and professional services and perpetual license fees increased to £0.46m (2016: £0.19m)
- Gross profit increased by 26% to £2.42m (2016: £1.92m)
- Operating expenses increased by 7% to £4.15m (2016: £3.89m) – adversely impacted by the depreciation of sterling comparative to the previous period
- Adjusted EBITDA* loss of £1.72m (2016: £1.96m)
- Group operating loss for the year decreased to £1.76m (2016: £3.09m) – impacted by further exchange differences of £0.14m gain (2016: £0.64m loss)
- Loss after tax of £1.60m (2016: £3.45m)
- Basic loss per share of 0.61p (2016: 1.39p)
- Cash at bank of £0.73m (2016: £0.17m) with net debt of £9.81m (2016: £9.06m)
*Earnings before interest, tax, depreciation, amortization, exceptional items and excluding exchange differences
Operating highlight
- Contract wins with two major Mobile Network Operators (“MNO”) in Israel – now well positioned to capitalise on significant opportunities in the Israeli market
- Contract renewal with our Tier 1 network operator in Canada, currently our largest customer by license count and revenues
- Full commercial launches with two MNO customers in South Africa
- Completed the development of new Instant Communication platform, with significantly higher capacity and additional user features
- Software Development Kit (“SDK”) upgraded and released to market
- Development of the new Dispatch Console (MDC200) completed and released to market
Jeremy Fenn, Chairman of Mobile Tornado, said: “The market continues to move in a favourable direction and supports the investment we have made in our technical platform. There is an increasing appetite for companies and public agencies to explore PTToC as an alternative to their traditional radio systems. The lower cost of ownership, and enhanced functionality, are providing very compelling reasons for switching.
“The Board believes the Company is very well positioned to take advantage of these market dynamics. We believe we now have the leading offering within the business-critical market and are uniquely placed to capture non-mission-critical enterprise customers seeking a lower cost solution with the superior functionality benefits that PTToC offers.
“Our focus for the coming year will firmly shift towards the development of our sales channels and the monetisation of the platform. We have some excellent customers already on the platform and we are working closely with them to ensure they reach their full potential.”
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