Losses increase at Mobile Tornado
Push-to-talk mobile communications group, Mobile Tornado, has published its results today, showing that losses have continued to rise at the Harrogate-based company.
The final results to 31st December show that revenue is down 34% to £1.75m, with loss after tax rising to £2.95m (2013: £2.34m). Net debt has more than doubled to £6.56m (2013: £3.19m).
However, recurring revenues at the firm have grown by 45% to £1.20m. This was due to the commercial launch of services in Canada.
"The outlook remains positive for the business as recurring revenue levels continue to increase. The macro picture is also positive and we have developed one of the leading technical platforms in this space. The current year has started in line with our expectations and I look forward to further updates as the year progresses,” said Jeremy Fenn, chief executive officer.
At the same time as releasing the results, the Group also announced that it was placing 22,500,000 new shares at 6p each, or 9.99% of the company. Through this latest issue, it is hoping to raise £1.35m. The cash would be used to help it break even and support growth.
Mobile Tornado currently has its sights set on South America, where it launched in Mexico and Brazil earlier this year. South America, it says, is the largest Push to Talk market in the world.