Member Article

Harrogate-based Mobile Tornado expects £3 million in pretax losses

Harrogate-based Mobile Tornado, an instant communications services provider for mobile devices, has announced that its total revenue is expected to be 30% below forecast and will report a loss before tax of around £3 million.

These final year predictions come despite increased number of users and recurring revenue, which is expected to have increased by over 40% for the current financial year when compared to the prior year.

By the end of the current financial year, the firm says that monthly subscribers are expected to have more than doubled over the prior year, reflecting increased adoption rates from key clients.

However, one-off capital expenditure-type revenues have been lower than previously expected as sales cycles have lengthened with many of our prospective customers.

Mobile Torndao says changes in the management team have already improved account management operations in recent months.

They said they expected to see the continued growth of recurring revenues during 2015 as a result of these efforts.

The board also continues to work on a number of large and interesting new client prospects and believes that these contracts will now materialise over the near to medium term.

The Company’s new management has also reportedly reduced operating costs by approximately £0.8 million, on an annualised basis, which is expected to become effective from the beginning of the next financial year.

Jeremy Fenn, CEO of Mobile Tornado, commented “Whilst it is obviously disappointing to report trading in the current financial year is not expected to meet market expectations, I am pleased to report the increasing levels of recurring revenue, which gives us confidence in the future of the Company.

“I am also encouraged by the positive actions taken by the board to reduce operating costs while simultaneously improving the operating controls within the business.

“The outlook remains positive for the Company as recurring revenue levels continue to increase and we remain focused on closing some significant license deals over the near term.

“We would also like to thank shareholders for their continued support and remain committed to delivering significant shareholder value.”

This was posted in Bdaily's Members' News section by Clare Burnett .