Mobile Tornado narrows losses in ‘favourable’ market
Communications provider Mobile Tornado has narrowed its losses after saying the market continues to move in a favourable direction as it looks to capitalise on “significant” opportunities in Israel.
The Harrogate-based company, which provides instant communication software that can be used on mobile phones, saw total revenue increase by 25% to £2.53m (2016: £2.02m) in the year to the end of December 2017, while pre-tax losses came in at £2.45m, down from £3.72m.
Gross profit increased by 26% to £2.42m (2016: £1.92m) but operating expenses also increased by 7% to £4.15m (2016: £3.89m) – which it attributed to the depreciation of the Sterling.
The group sealed contract wins with two major Mobile Network Operators (MNO) in Israel and says it is now well positioned to capitalise on significant opportunities in the Israeli market.
It also clinched a contract renewal with a network operator in Canada, currently its largest customer by license count and revenues, while it also launched with two MNO customers in South Africa.
Jeremy Fenn, chairman of Mobile Tornado, said: “The market continues to move in a favourable direction and supports the investment we have made in our technical platform. There is an increasing appetite for companies and public agencies to explore PTToC as an alternative to their traditional radio systems. The lower cost of ownership, and enhanced functionality, are providing very compelling reasons for switching.
“The board believes the company is very well positioned to take advantage of these market dynamics. We believe we now have the leading offering within the business-critical market and are uniquely placed to capture non-mission-critical enterprise customers seeking a lower cost solution with the superior functionality benefits that PTToC offers.
“Our focus for the coming year will firmly shift towards the development of our sales channels and the monetisation of the platform. We have some excellent customers already on the platform and we are working closely with them to ensure they reach their full potential.”
