Network and telecommunications firm slips back into a loss
Network and telecommunications firm Mobile Tornado has seen its total revenue drop by 13% according to its half year results, slipping the business back into a loss following profit making second half of 2019.
For the six months to 30 June, the Harrogate-based business recorded revenue £1.29m, down from £1.49m in 2019. The fall occurred as a result of a 45% drop in non-recurring revenue in the period. with Jeremy Fenn, chairman of Mobile Tornado stating the unprecedented times were impacting the closing of new deals.
However despite the fall in non recurring revenue the business did see growth in its recurring revenue streams which increased by 3% to £1.01m for the six months.
Fenn, added:”We [previously] highlighted the uncertain economic environment we faced with COVID 19 and the financial results for the first half reflect the challenges we have faced since then.
“We have been able to limit these losses through a robust recurring revenue stream and a continued focus on our operating cost base, which has been further reduced given the increasing efficiencies of our platform.
One success the business has reported during the challenging period has been the successful launch of a “track and Trace” mobile solution on behalf of the Government of The Bahamas. The system which can either be downloaded directly to mobile devices or pushed to high risk or vulnerable patients enables users to be geo-fenced in specific locations , with an alarm triggered should a user breach protocol or leave their isolation location. The firm states this system is currently “protecting and controlling” more than 3,000 people and that it expects a further roll out when the tourism industry begins to increase.
Fenn commented on the track and trace system saying: “Our technical team has continued to increase the functionality of our platform and develop innovative applications to meet the needs of our partners and customers. One of the most exciting developments, covered in a separate announcement today, is the track and trace application which has been deployed by the Government of The Bahamas in their efforts to manage the COVID19 virus.
Looking ahead to the future the business states it remains “engaged with all of the key opportunities” previously highlighted but that due to the economic backdrop deals are taking longer to complete.
Fenn added that: “I am hopeful we can make progress before the end of this year, and provide the catalyst for transformative growth in 2021.”
Alongside the results the Harrogate firm has also announced a 12 month extension of its £300,000 revolving loan facility with principal shareholder Intechnology, with the business yet to draw any funding down. It plans to utilise the additional capital provided by this deal to support the financing of “the Company’s sales pipeline under the Capex Model where the Company is required to fund the hardware prior to placement with the end customer.”