2ergo reins in full-year losses

SALFORD mobile app developer 2ergo is still “striving for profitability” as it reported another loss and a sharp decline in full-year revenue.

In the 12 months to the end of August sales fell from £8.3m to £3.5m while pre-tax losses reduced from £16.1m to £5m.

The company said its loss on the earnings before interest, tax, depreciation and amortisation (EBITDA) measure increased to £3.2m from £2.4m.

2ergo’s main product is the Podifi offers service which allows customers on any mobile network to redeem local discounts and promotional offers using their phones. Once the app is downloaded users can redeem offers by tapping the phone over a specially installed ‘podifi pod’, connected to a till.

The company said there is significant interest in the technology but “customer uptake is taking longer than previously expected”.

Chairman Ian Smith said: “During the year the group raised £5.7m to provide additional working capital and the capital resources necessary to develop the podifi technology and associated sales strategies. The technology is now scalable and robust, as proven in several live client installations, and the pipeline is healthy.

“2ergo’s patented technology is at an early stage of commercialisation but through several client pilots the business demonstrates significant potential whilst striving for a breakthrough to profitability. It is anticipated that full commercialisation of any one of these existing pilots would achieve this.”