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 2020.
Group operating loss
Loss before tax
· Total revenue decreased by 27% to £2.53m (2019: £3.45m)
o Recurring revenues remained largely unchanged at £2.04m (2019: £2.06m)
o Non-recurring revenues* decreased by 65% to £0.49m (2019: £1.39m)
· Gross profit decreased by 26% to £2.35m (2019: £3.17m)
· Operating expenses before depreciation, amortisation, exceptional items and exchange differences decreased by 14% to £2.72m (2019: £3.16m)
· Adjusted EBITDA** loss of £0.37m (2019: profit of £0.01m)
· Group operating loss for the year increased to £0.78m (2019: £0.32m)
· Loss after tax of £1.14m (2019: £0.82m)
· Basic loss per share of 0.30p (2019: 0.23p)
· Cash at bank of £0.19m (2019: £0.26m) with net debt of £9.10m (2019: £8.62m)
* Non-recurring revenues comprise installation fees, hardware, professional services and capex license fees
**Earnings before interest, tax, depreciation, amortisation, exceptional items and excluding exchange rate differences
· Recurring revenue stream remained stable despite the highly uncertain global economic environment, demonstrating strength of business model
· Deployment of a "track and trace" application with the Government of Bahamas to assist management of quarantine in the fight against COVID-19
· Partnership Agreement with global LTE telecoms solutions provider, Telrad Networks to offer an integrated, end-to-end solution for Push-to-Talk communication over broadband
· Partner network expanded with new agreements established covering Peru, Spain, Portugal, Andorra and the UK
· Renewal of Agreement with a major Mobile Network Operator ("MNO") in North America for a further 12 months
Jeremy Fenn, Chairman of Mobile Tornado, said: "Notwithstanding the unique challenges that 2020 presented, I am pleased with the resilience the business has exhibited, and the financial results that were delivered. More importantly, we retained and expanded our global network of partners, and have entered 2021 with a strong pipeline of potential new customers.
"We will continue to innovate around the platform, but our core focus now is to scale the recurring revenue base, to drive the business to sustained profitability. There are clear signs that activity levels within our key markets are picking up and we look forward to the business getting back on track and delivering a positive outcome for the current year."