Mobile Tornado expects to report interim loss
Instant communication solutions provider Mobile Tornado said on Wednesday that revenues for the six months ended 31 December were expected to be approximately £1.23m.
Mobile Tornado, which expects to report an interim underlying loss of approximately £10,000, said that based on unaudited management accounts and subject to audit, full-year revenues for 2020 were now projected to be roughly £2.52m, with an LBITDA of approximately £400,000.
Despite "the huge impact" of Covid-19 across all of its main markets, the AIM-listed group said recurring revenues remained stable at around £2.03m but also cautioned that it had been "much more challenging" to close out new business during the period, particularly as two of its most important markets, South America and South Africa, had been severely impacted by the coronavirus.
Total operating expenses fell to approximately £2.73m from £3.16m in 2019.
With the firm's expectations that activity levels will begin to pick up again in its other key markets, Mobile Tornado said it was focused on driving the business into an EBITDA positive position during 2021.
Chairman Jeremy Fenn said: "Despite the unprecedented challenges that were presented during 2020, where it was very difficult to generate new business, I am pleased that the robustness of our business model and recurring revenue streams has allowed us to trade through the period with only modest losses.
"There is still a huge amount of uncertainty in the marketplace, so it is difficult to make forecasts for the year. However, we have started the year brightly and the board is totally focused on moving the business into sustainable profit during the current financial year."
As of 1005 GMT, Mobile Tornado shares were flat at 4.80p.