2ergo losses fall as it hangs on for funding
SALFORD mobile app developer 2ergo has reported a half year loss of £2.4m as fundraising negotiations continue.
Turnover fell to £2.3m for the half year to the end of February 2013 (2012: £4.8m) while pre tax losses were down on the previous half year (2012: £3.7m loss).
The group’s model is to charge up-front, monthly and transactional fees for its podifi technology, which it said taken together will contribute increased revenue in the second half of the year, given the group’s strong pipeline and increase in demand.
However, it added that “whilst the board believes the podifi pipeline is stronger than ever, uncertainty surrounding the timing of the uptake of the technology renders any forecasting of sales performance in the short and medium term very difficult.”
Earlier in the month the business told investors that, “no further assurance could be given on the future of the group until it was able to ascertain the quantum and terms of funding available”.
Today it said this fundraising negotiations are ongoing, but added that the group hopes to be able to announce a positive outcome over the coming weeks.
Neale Graham, chief executive of 2ergo, said: “The progress we have made in commercialising podifi has been very encouraging so far, with a number of contract wins with high profile customers. We believe that our technology platform has great potential in the rapidly growing mobile couponing, loyalty and payments space and the results of recent pilots have reinforced this.”
