Member Article

Fitbug nearly halves its losses as B2B turnaround continues

London-based wellness firm, Fitbug, has revealed a heartening set of financials this morning as its turnaround plan has kicked into gear in the last 12 months, with losses down and an increase in its B2B contract wins.

The publicly listed business embarked on its plans to pivot from a consumer fitness company to a corporate wellness business last year, after it had struggled to adapt to the changing landscape of the competitive healthtech market.

Now, Fitbug has announced that it has nearly halved its losses in a year after it made a loss of £3.5m, representing a 42% drop on the £6.3m losses it revealed in 2015.

The company has also revealed that it managed to raise £2.61m in funding last summer, with £1.76m from its crowdfunding campaign, to support its turnaround plan while £8.4m of long term debt was also converted into equity.

Donald Stewart, who is Chairman at Fitbug Holdings, said that the company had witnessed the ‘economic acorn’ of its future success after sealing some recurring service revenues from its corporate clients.

He added: “We are currently experiencing healthy interest in the Group’s products with a continuous flow of enquiries and conversations with direct and indirect customers.

“Many of these customers are household names and the Board is in no doubt that corporate interest in health and wellness is growing. The Directors believe that this is an idea whose time has come.”

Chief Executive Officer, Anna Gudmundson, who was brought in back in August 2015, said: “We have started 2017 with a strong pipeline of quality prospects. We have also embarked on a direct-to-corporate sales programme.

“This will allow Fitbug to focus on creating a greater number of good quality business leads both in the short and longer term, and not rely only on our strategic partners.”