Mobile Tornado Group PLC – Final results & Notice of AGM

Mobile Tornado Group plc, the leading provider of instant communication mobile applications to the enterprise market, announces its audited results for the year ended 31 December 2018.

Financial Highlights 

• Total revenue increased by 18% to £2.97m (2017: £2.53m)
  –  Recurring revenues remained largely unchanged at £2.05m (2017: £2.07m)
  –  Non-recurring revenues* increased by 101% to £0.93m (2017: £0.46m)
• Gross profit increased by 10% to £2.66m (2017: £2.42m)
• Operating expenses before depreciation, amortisation, exceptional items and exchange differences decreased by 14% to £3.55m (2017: £4.15m)
• Adjusted EBITDA** loss of £0.89m (2017: £1.72m)
• Group operating loss for the year decreased to £1.28m (2017: £1.76m)
• Loss after tax of £1.54m (2017: £1.60m)
• Basic loss per share of 0.47p (2017: 0.61p)
• Cash at bank of £0.35m (2017: £0.73m) with net debt of £8.07m (2017: £9.81m)

 *Non-recurring fees comprising installation fees, hardware, professional services and capex license fees
**Earnings before interest, tax, depreciation, amortisation, exceptional items and excluding exchange differences

Operating highlights 

• Development of Bundled push-to-talk (“PTT”) Sales solution successfully deployed in volume resulting in significant licence and handset sales improvement
• Sustained R&D investment in platform now delivering material operational cost benefit
• Technical improvements have widened addressable market, with numerous engagements for the first time with high value Public Safety and Government Agency customers
• Total Cost of Ownership reductions increase accessibility for workforce efficiency enterprise customers
• Expanding pipeline of reseller and Independent Solution Vendors (“ISV”) engagement following improvement to third party integration solutions

 Jeremy Fenn, Chairman of Mobile Tornado, said: “This year has been a landmark year and one of substantial development for the Group. Our improved operating efficiency following a long period of sustained investment is clearly paying off and the successful launch of our Bundled PTT offering which delivers a complete solution to end users has driven significantly improved financial performance.

 “We are seeing increasing interest in the Group’s products and solutions, and where we encounter inevitable competition, we are demonstrating that we can succeed against established providers based on the superior quality, flexibility, robustness and features of our technical platform. The improved functionality and flexibility we now have has also driven down the total cost of ownership of our solutions widening our addressable market.

“Under Avi Tooba’s leadership, we have a strong team focused on consistent execution. We expect that the rapidly improving operating performance of the business will now deliver durable long-term cash flows and we are confident this will start to drive meaningful returns to our shareholders.”