2ergo losses hit £16.2m
MOBILE app and contactless payment firm 2ergo has reported a pre-tax loss of £16.2m but predicts a return to profitability in 2013.
The Salford Quays-based company’s full year results show a turnover of £8.4m for continuing operations (2011: £10.1m), with a pre-tax loss of £16.2m, including a £12.3m impairment (2011: £3.8m loss) to the end of August 2012.
Over the past 18 months, the group has moved its focus away from providing mainstream mobile solutions, which it found increasingly difficult to scale, and also disposed of its development company in India and its US and Australian businesses to significantly reducing its cost base.
2ergo is now structured around one technology and three scalable routes to market in the UK. These are: podifi, the group’s contactless mobile technology aimed at large retailers and enterprises; TikTap, a local commerce contactless coupon redemption technology aimed at SMEs; and customer insight services.
Neale Graham, chief executive of 2ergo, said: “The new management team have transformed the group during the year. We are now well advanced in our move away from an increasingly commoditised, difficult to scale mobile solutions operation to a ground-breaking, contactless mobile technologies business.
“The contactless mobile market is expanding rapidly and we are confident that with podifi we have a unique and compelling market proposition that “closes the loop” on mobile couponing, loyalty and payments mechanisms – one that puts us ahead in the market.
“Although only recently launched, we are extremely encouraged with the progress made to date with both podifi and TikTap and the overwhelmingly positive reaction received from both businesses and industry experts. We are now entering an extremely exciting period in our development.”
The group said it is s operating in line with the board’s expectations and it anticipates revenue growth and a return to profitability in 2013.
It added that it seeing good demand for its podifi technology, with the level and nature of enquiries and opportunities from new and existing clients gaining momentum.
