Mobile Tornado warns on profits following Israel delays

Communication solutions provider Mobile Tornado warned on Friday that it was set to report a 2019 full-year underlying loss after a delay to the full deployment of its solutions in Israel.

Mobile Tornado expects revenues for the six months ended 31 December to come to around £1.8m, with an approximate EBITDA breakeven position for the period.

However, based on unaudited management accounts and subject to audit, full-year revenues were expected to be approximately £3.3m, with an EBITDA loss of about £300,000 - below current market expectations.

The AIM-listed group said the shortfall in revenue was largely due to a delay to the full deployment of its solution with an unnamed government agency and "a major public utility" in Israel.

Although the commercial terms for both deals were said to have been agreed upon, with "significant" development work already being completed for each customer during the period, full deployment of devices to the clients' field teams was delayed until the early part of 2020.

Chairman Jeremy Fenn said: "Whilst the expected outcome for the financial year is below what we had hoped, I am pleased to report that the business achieved a breakeven EBITDA position in the second half of the year for the first time.

"Furthermore, the investment made to enhance the company's solution suite should lead to a broader customer base, reduce future volatility in earnings and soften the impact of future timing issues."

As of 0900 GMT, Mobile Tornado shares were down 5.26% at 3.60p.