Full Year Trading Update

RNS Number : 2270A

Mobile Tornado Group PLC

01 February 2022

 

This announcement contains Inside Information for the purposes of Article 7 of EU Regulation 596/2014 (which forms part of domestic UK law pursuant to the European Union (Withdrawal) Act 2018). Upon the publication of this announcement this Inside Information is now considered to be within the public domain.

1 February 2022

Mobile Tornado Group plc

("Mobile Tornado", the "Company" or the "Group")

Full Year Trading Update

Mobile Tornado (AIM: MBT), a leading provider of resource management mobile solutions to the enterprise market, announces a trading update ahead of the publication of its audited results for the year ended 31 December 2021, which are expected to be announced during the week commencing 28 March 2022.

The Directors currently expect unaudited revenues for the six months to 31 December 2021 to be approximately £1.29m with an approximate EBITDA loss of £30k. As a result, based on unaudited management accounts and subject to audit, full year revenues for 2021 are expected to be approximately £2.52m with an EBITDA* loss of approximately £20k.

Despite the continuing impact of COVID-19 across all of the Group's main markets during 2021, the Directors are pleased to report that the Group's recurring revenues remained stable at approximately £2.07m (2020: £2.04m). Non-recurring revenues were approximately £0.45m compared to £0.49m in 2020. The Company has delivered further efficiencies in operations, driven by the continuing performance improvements of its technical platform, which has resulted in total operating expenses falling to approximately £2.47m in the year 2021 from £2.72m in 2020.

As detailed in the interim results announced in September 2021, the Company has developed a comprehensive resource management solution, combining the current Push to Talk ('PTT') application with workforce management functionality ('WFM') and mobile device management ('MDM'). The target market will continue to be businesses with remote workforces, but initially the focus will be on the security, hospitality and public utility verticals. The Board is pleased to report that the resource management solution has been launched to a number of customers and the feedback received to date has been very positive. The Company's website has been relaunched to better capture the broader service offering and the Board look forward to making further advances with new partners and customers during the 2022 financial year.

The Board were disappointed to lose the customer in Canada, as announced on 1 December 2021. The loss of this customer has created a shortfall as the Company moves into the new financial year and the Directors and employees are working hard to bridge this gap, through further operational efficiencies, and renewed efforts to close out deals that have stalled as a result of the disruption caused by COVID-19 related restrictions in the Group's key markets. The Company is also exploring new routes to market, to ensure that its enhanced proposition is given the opportunity to deliver its full potential. The Board will update further on these initiatives when the Company reports its full year results at the end of March 2022.

*EBITDA refers to earnings before interest, tax, depreciation, amortisation and exchange rate gains or losses

Enquiries:

Mobile Tornado Group plc	[phone]
Jeremy Fenn, Chairman	www.mobiletornado.com
Allenby Capital Limited  (Nominated Adviser & Broker)	[phone]
James Reeve / Piers Shimwell (Corporate Finance) David Johnson (Sales and Corporate Broking)
Walbrook PR Ltd	[phone]
Paul Vann/Nick Rome	[e-mail]

About Mobile Tornado

Mobile Tornado is a leading provider of Resource Management solutions combined with critical communications for Tier 1 mobile operators and solution providers. The Company's range of solutions include Instant Talk, Instant Locate, Instant Alert and Instant Message as well as an advanced Dispatch Console. These services have been supplemented by a sophisticated suite of tools to manage employees and other assets, while reducing manual tasks and lowering cost of ownership.

 

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