TIDMMBT
RNS Number : 8979N
Mobile Tornado Group PLC
28 September 2023
28 September 2023
Mobile Tornado Group plc
("Mobile Tornado", the "Company" or the "Group")
Half Yearly Report
Mobile Tornado (AIM: MBT), a leading provider of resource
management mobile solutions to the enterprise market, announces its
unaudited results for the six-month period to 30 June 2023.
Financial highlights
Six months Six months
ended ended
30 June 30 June
2023 2022
Unaudited Unaudited
GBP'000 GBP'000
Recurring revenue 964 932
Non-recurring revenue* 293 172
------------------------- ----------- -----------
Total revenue 1,257 1,104
Gross profit 1,129 1,066
Administrative expenses (1,284) (1,275)
Adjusted EBITDA** (155) (209)
Group operating loss (144) (454)
Loss before tax (527) (775)
----------- -----------
-- Total revenue increased by 14% to GBP1.26m (H1 2022: GBP1.10m)
o Recurring revenues increased by 3% to GBP0.96m (H1 2022:
GBP0.93m)
o Non-recurring revenues* increased by 70% to GBP0.29m (H1 2022:
GBP0.17m)
-- Operating expenses increased by 1% to GBP1.28m (H1 2022: GBP1.28m)
-- Adjusted EBITDA** loss of GBP0.16m (H1 2022: GBP0.21m)
-- Group operating loss for the period decreased to GBP0.14m (H1
2022: GBP0.45m) - impacted by exchange differences of GBP0.10m gain
(H1 2022: GBP0.15m loss)
-- Loss before tax of GBP0.53m (H1 2022: GBP0.78m)
-- Basic loss per share of 0.14p (H1 2022: 0.20p)
-- Net cash outflow from operating activities of GBP0.28m (H1 2022: GBP0.02m inflow)
-- Net debt at 30 June 2023 of GBP10.43m (H1 2022: GBP10.03m)
-- Cash and cash equivalents of GBP0.05m (30 June 2022: GBP0.12m)
*Non-recurring revenues comprising installation fees, hardware,
professional services and capex license fees
**Earnings before interest, tax, depreciation, amortisation,
exceptional items and excluding exchange differences
Operating Highlights
-- Increased investment in business development activities to
capitalize on strength of our technical solution . Post 2022 year
end fundraise was completed to support this scale up
-- Landmark push-to-talk over cellular ("PoC") deal concluded
with Leeds Bradford Airport
-- Extension to agreement with our existing partner in South
Africa which will see us become an exclusive reseller of their
personnel management platform
Jeremy Fenn, Chairman and acting CEO of Mobile Tornado, said:
"The Company has for some time been a key player in the PTToC
market, with a presence in Africa, South America and Europe. Our
solution meets the mission-critical communication needs of our
customers, and is characterised by a number of key differentiators,
such as seamless transition, market-leading group sizes, a unique
dispatcher console, and highly efficient data utilization. These
features continue to set us apart from our competitors and allow us
to deliver market leading performance to our partners and
customers.
"The process of building a much deeper and wider business
development operation commenced during the first half of the year
and has made great progress. As a result, we have begun to open up
new markets in the USA, parts of Asia and the Middle East. Physical
attendance at trade shows and a more sophisticated PR strategy is
generating significant inbound interest across many international
markets. As previously mentioned, we have strengthened our sales
teams to handle this increased activity and are now in the process
of building much deeper and better quality sales pipelines.
"Despite a challenging economic environment, the Board are
confident that our solution offers quality and good value,
particularly when compared to the traditional radio platforms. We
are building a much wider partner network and are confident that
the developing sales pipeline will convert into new customers in
due course. At the same time, we are working with our partners to
develop bespoke solutions for key verticals which will provide
further opportunity as we look to push those solutions into the
wider partner network."
Enquiries:
Mobile Tornado Group plc +44 (0)7734 475 888
Jeremy Fenn, Chairman and acting CEO www.mobiletornado.com
Allenby Capital Limited (Nominated Adviser
& Broker) +44 (0)20 3328 5656
James Reeve / Piers Shimwell (Corporate
Finance)
David Johnson (Sales and Corporate Broking)
Financial results
Total turnover in the six-month period to 30 June 2023 increased
by 14% to GBP1.26m (H1 2022: GBP1.10m). Recurring revenues
increased by 3% to GBP0.96m (H1 2022: GBP0.93m).
Non-recurring revenues, comprising installation fees, hardware,
professional services and capex license fees increased by 70% to
GBP0.29m (H1 2022: GBP0.17m). Gross profit increased by 6% to
GBP1.13m (H1 2022: GBP1.07m).
Our underlying total operating cost-base remained largely
unchanged over the comparative period, increasing by 1% to GBP1.28m
(H1 2022: GBP1.28m). Due to the annual revaluation of certain
financial liabilities on the balance sheet, the Group reported a
currency translational gain of GBP0.10m (H1 2022: GBP0.15m loss)
arising principally from the appreciation of Sterling against the
US Dollar compared to the start of the period. As a result of the
above, the loss after tax for the period decreased to GBP0.56m (H1
2022: Loss of GBP0.76m).
The Group reported a net cash outflow from operating activities
during the period of GBP0.28m (H1 2022: GBP0.02m inflow). At 30
June 2023, the Group had GBP0.05m cash at bank (30 June 2022:
GBP0.12m) and net debt of GBP10.43m (30 June 2022: GBP10.03m).
Review of operations
The Board are pleased to report a robust set of financial
results for the first six months of the year. A small increase in
the recurring revenue stream illustrates the high-quality customer
base we have established, and the 70% uplift in non-recurring
revenues reflects the renewals on existing capex based license
deals. As highlighted earlier in the year, the Board is now focused
on delivering a significantly enhanced business development
operation to build out a much wider partner base, and ultimately
generate a material uplift in customers. We are confident that the
investment we have made in the technical platform over recent years
has delivered superior performance against competing solutions.
It's now essential that we capitalise on this and expose the
platform to many more partners across all international markets and
industry sectors.
To facilitate this, there has been an increase in business
development activity during the period. A sophisticated outreach
campaign has been developed, supported by our attendance at the
major critical communication trade shows. We have recruited into
the sales team to manage the increasing levels of new partner and
customer engagement. As a result of this activity, new partners
have been contracted in the UK, USA, Chile, Germany and UAE with
expansion into further new territories anticipated.
Our existing partners have continued to make progress during the
year. In South and Central America, we continued to focus on the
deployment of the solution to public safety organisations and
progress has been made here. We are now awaiting final confirmation
around the hardware that will be utilised alongside our platform,
and this should be the catalyst for a significant roll out. A
number of other public safety organisations are now using our
solution across the Caribbean, and we are in discussions with
others across multiple territories. The quality of our solution and
the relative cost compared to traditional radio platforms is
attracting a lot of interest across the public safety sector, and
we hope for a breakthrough before the end of the year.
In the UK we closed out a deal at Leeds Bradford airport
('LBA'), to provide their ground operations staff with our full
PTToC solution. We understand that LBA is one of the first airports
in Europe to upgrade its radio system to PTToC, and the publicity
that was generated from this deal has resulted in a significant
amount of interest from other airports.
A partnership agreement has also been reached with a UK security
services business to deploy our solution into water utility
businesses. This represents an interesting development, whereby our
solution is adapted to meet the specific requirement of a
particular industry sector. On a similar note, we are working with
another UK partner to develop the solution specifically for the
retail supermarket sector, to address opportunities both in the UK
and Ireland. If these bespoke applications meet with success, we
will look to roll them out to our global partner network and work
with them to address their own local markets.
In Africa, we recently extended our partnership with Instacom, a
leading provider of critical communication solutions to government
agencies and private companies. As part of the agreement, we will
also act as exclusive UK reseller for Instacom's PTX personnel
management platform. The platform enables the simple and effective
management of employees, helping to improve operational
efficiencies and productivity as well as reducing costs. We have
been working with Instacom since 2010 and the continued growth of
mobile network coverage across Africa is creating big opportunities
for government agencies and private enterprises to increase safety,
reduce costs, boost productivity and improve efficiency among their
remote workforces. Completing this deal, and integrating the PTX
platform into our own, will allow the Company to reduce R&D
operating costs, as we can reduce the resources currently allocated
to the development of our own workforce management platform.
In the Caribbean, our partner has built up strong sales momentum
with Digicel, one of the main mobile network operators in the
region. Deals have been closed within multiple sectors including
public safety, security, hotels and logistics.
Funding
As announced on 22 September 2023, we agreed a 12-month
extension of our revolving loan facility with our principal
shareholder, InTechnology plc. This facility has a term ending on
26 September 2024 with a maximum principal amount of GBP500,000.
The balance drawn down at 30 June 2023 was GBP150,000 and as at
today's date, the balance drawn down is GBP190,000.
In March 2023, we concluded a subscription for 25.0m new
ordinary shares of 2 pence each representing approximately 6.6 per
cent. of the existing issued ordinary share capital of the Company
at a price of 2 pence per share to raise GBP500,000. The Company
also announced the capitalisation of GBP259,490 of indebtedness
owed by the Company to InTechnology plc into 12,974,492 new
Ordinary Shares, also at 2 pence per share.
We remain confident that our available cash resources together
with our long-established recurring revenue customer base and
anticipated future contracts will provide us with adequate
financial resources for the foreseeable future.
Outlook
The Company has for some time been a key player in the PTToC
market, with a presence in Africa, South America and Europe. Our
solution meets the mission-critical communication needs of our
customers, and is characterised by a number of key differentiators,
such as seamless transition, market-leading group sizes, a unique
dispatcher console, and highly efficient data utilization. These
features continue to set us apart from our competitors and allow us
to deliver market leading performance to our partners and
customers.
The process of building a much deeper and wider business
development operation commenced during the first half of the year
and has made great progress. As a result, we have begun to open up
new markets in the USA, parts of Asia and the Middle East. Physical
attendance at trade shows and a more sophisticated PR strategy is
generating significant inbound interest across many international
markets. As previously mentioned, we have strengthened our sales
teams to handle this increased activity and are now in the process
of building much deeper and better quality sales pipelines.
Despite a challenging economic environment, the Board are
confident that our solution offers quality and good value,
particularly when compared to the traditional radio platforms. We
are building a much wider partner network and are confident that
the developing sales pipeline will convert into new customers in
due course. At the same time, we are working with our partners to
develop bespoke solutions for key verticals which will provide
further opportunity as we look to push those solutions into the
wider partner network.
Jeremy Fenn
Chairman
28 September 2023
Consolidated income statement
For the six months ended 30 June 2023
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2023 2022 2022
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
Continuing operations
Revenue 1,257 1,104 2,279
--------------------------------------- ----- --------------- ----------------- -----------------
Cost of sales (128) (38) (56)
--------------------------------------- ----- --------------- ----------------- -----------------
Gross profit 1,129 1,066 2,223
Operating expenses
Administrative expenses (1,284) (1,275) (2,507)
Exchange differences 101 (148) (227)
Depreciation and amortisation expense (90) (97) (212)
--------------------------------------- ----- --------------- ----------------- -----------------
Total operating expenses (1,273) (1,520) (2,946)
Group operating loss before exchange
differences,
depreciation and amortisation expense (155) (209) (284)
--------------------------------------- ----- --------------- ----------------- -----------------
Group operating loss (144) (454) (723)
Finance costs (383) (321) (696)
Loss before tax (527) (775) (1,419)
Income tax (expense)/credit (29) 12 37
Loss for the period (556) (763) (1,382)
--------------------------------------- ----- --------------- ----------------- -----------------
Loss per share (pence)
Basic and diluted 3 (0.14) (0.20) (0.36)
--------------------------------------- ----- --------------- ----------------- -----------------
Consolidated statement of comprehensive income
For the six months ended 30 June 2023
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2023 2022 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Loss for the period (556) (763) (1,382)
Other comprehensive income
Exchange differences on translation
of foreign operations 23 (58) (61)
Total comprehensive loss for
the period (533) (821) (1,443)
-------------------------------------- ----------- ----------- ------------
Consolidated statement of financial position
As at 30 June 2023
30 June 30 June 31 December
2023 2022 2022
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Property, plant and equipment 130 139 155
Right-of-use assets 300 - 350
430 139 505
-------------------------------------- ----- ---------- -------------------- ------------
Current assets
Trade and other receivables 1,472 1,701 1,414
Inventories 35 34 25
Cash and cash equivalents 45 122 145
-------------------------------------- ----- ---------- -------------------- ------------
1,552 1,857 1,584
-------------------------------------- ----- ---------- -------------------- ------------
Liabilities
Current liabilities
Trade and other payables (5,244) (5,139) (5,191)
Borrowings (4,748) (4,414) (10,558)
Lease liabilities (105) - (105)
Net current liabilities (8,545) (7,696) (14,270)
-------------------------------------- ----- ---------- -------------------- ------------
Non-current liabilities
Trade and other payables (861) (1,219) (1,076)
Borrowings (5,723) (5,734) (27)
Lease liabilities (209) - (258)
(6,793) (6,953) (1,361)
-------------------------------------- ----- ---------- -------------------- ------------
Net liabilities (14,908) (14,510) (15,126)
-------------------------------------- ----- ---------- -------------------- ------------
Equity attributable to the owners of
the parent
Share capital 4 8,354 7,595 7,595
Share premium 4 15,787 15,797 15,797
Reverse acquisition reserve (7,620) (7,620) (7,620)
Merger reserve 10,938 10,938 10,938
Foreign currency translation reserve (2,247) (2,267) (2,270)
Accumulated losses (40,120) (38,953) (39,566)
Total equity (14,908) (14,510) (15,126)
-------------------------------------- ----- ---------- -------------------- ------------
Consolidated statement of changes in equity
For the six months ended 30 June 2023
Foreign
Reverse currency
Share Share acquisition Merger translation Accumulated Total
capital premium reserve reserve reserve Losses equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
January
2022 7,595 15,797 (7,620) 10,938 (2,209) (38,196) (13,695)
Loss for the
period - - - - - (763) (763)
Exchange
differences
on translation
of foreign
operations - - - - (58) - (58)
Total
comprehensive
loss for the
year - - - - (58) (763) (821)
Equity settled
share-based
payments - - - - - 6 6
Balance at 30
June
2022 7,595 15,797 (7,620) 10,938 (2,267) (38,953) (14,510)
--------------- -------------- ---------------- ------------------ ---------------- ------------------- --------------------- -----------------
Foreign
Reverse currency
Share Share acquisition Merger translation Accumulated Total
capital premium reserve reserve reserve Losses equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
July
2022 7,595 15,797 (7,620) 10,938 (2,267) (38,953) (14,510)
Loss for the
period - - - - - (619) (619)
Exchange
differences
on translation
of foreign
operations - - - - (3) - (3)
Total
comprehensive
loss for the
year - - - - (3) (619) (622)
Equity settled
share-based
payments - - - - - 6 6
Balance at 31
December
2022 7,595 15,797 (7,620) 10,938 (2,270) (39,566) (15,126)
--------------- -------------- ---------------- ------------------ ---------------- ------------------- --------------------- -----------------
Foreign
Reverse currency
Share Share acquisition Merger translation Accumulated Total
capital premium reserve reserve reserve Losses equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
January
2023 7,595 15,797 (7,620) 10,938 (2,270) (39,566) (15,126)
Issue of share
capital 759 (11) - - - - 749
Transactions
with
owners 759 (11) - - - - 749
Loss for the
period - - - - - (556) (556)
Exchange
differences
on translation
of foreign
operations - - - - 23 - 23
Total
comprehensive
loss for the
year - - - - 23 (556) (532)
Equity settled
share-based
payments - - - - - 2 2
Balance at 30
June
2023 8,354 15,786 (7,620) 10,938 (2,247) (40,120) (14,908)
--------------- -------------- ---------------- ------------------ ---------------- ------------------- --------------------- -----------------
Consolidated statement of cash flows
For the six months ended 30 June 2023
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2023 2022 2022
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
Operating activities
Cash used in operations 5 (247) (265) (173)
Tax (paid)/received (29) 281 238
Interest paid - - 9
----------------------------------------- ----- --------------------
Net cash (outflow)/inflow from operating
activities (276) 16 74
------------------------------------------------ ----------------- ----------------- --------------------
Investing activities
Purchase of property, plant & equipment (1) (20) (60)
Net cash used in investing activities (1) (20) (60)
----------------------------------------- ----- ----------------- ----------------- --------------------
Financing
Issue of ordinary share capital 759 - -
Share issue costs (11) - -
(Repayment of)/Increase in borrowings (514) 145 240
IFRS 16 leases (55) (89) (180)
Net cash (outflow)/inflow from
financing 179 56 60
----------------- ----------------- --------------------
Effects of exchange rates on cash
and cash equivalents (2) 5 6
----------------------------------------- ----- ----------------- ----------------- --------------------
Net (decrease)/increase in cash
and
cash equivalents in the period (100) 57 80
Cash and cash equivalents at beginning
of period 145 65 65
Cash and cash equivalents at end
of period 45 122 145
----------------------------------------- ----- ----------------- ----------------- --------------------
Notes to the interim report
For the six months ended 30 June 2023
1 General information
The financial information in the interim report does not
constitute statutory accounts within the meaning of section 434 of
the Companies Act 2006 and has not been audited or reviewed. The
financial information relating to the year ended 31 December 2022
is an extract from the latest published financial statements on
which the auditor gave an unmodified report that did not contain
statements under section 498 (2) or (3) of the Companies Act 2006
and which have been filed with the Registrar of Companies.
2 Basis of preparation
These interim financial statements are for the six months ended
30 June 2023. They have been prepared using the recognition and
measurement principles of IFRS.
The interim financial statements have been prepared under the
historical cost convention.
The interim financial statements have been prepared in
accordance with the accounting policies adopted in the last annual
financial statements for the year ended 31 December 2022. The
accounting policies have been applied consistently throughout the
Group for the purpose of preparation of the interim financial
statements.
3 Loss per share
Basic loss per share is calculated by dividing the loss
attributable to ordinary shareholders of GBP556,000 (30 June 2022:
GBP763,000, 31 December 2022: GBP1,382,000) by the weighted average
number of ordinary shares in issue during the period of 406,390,009
(30 June 2022: 379,744,923, 31 December 2022: 379,744,923).
Six months
ended Six months ended Year ended
31 December
30 June 2023 30 June 2022 2022
Unaudited Unaudited Audited
Basic and diluted Basic and diluted Basic and diluted
Loss Loss Loss Loss Loss Loss
per
share per share per share
GBP'000 pence GBP'000 pence GBP'000 pence
Loss attributable
to
ordinary shareholders (556) (0.14) (763) (0.20) (1,382) (0.36)
----------------------- ----------- ----------- ----------- ------------- ------------ ------------
4 Share capital and share premium
Number of
issued and
fully paid Share Share
shares capital premium Total
'000 GBP'000 GBP'000 GBP'000
At 1 January 2022, 30 June
2022 & 31 December 2022 379,745 7,595 15,797 23,392
Issue of shares 37,974 759 (11) 749
As at 30 June 2023 417,719 8,354 15,786 24,141
---------------------------- ------------------ ------------ ------------- -------------
Non-voting preference shares
Number
of Nominal
shares Value
'000 GBP'000
As at 30 June 2022, 31 December 2022 and
30 June 2023 71,277 5,702
------------------------------------------- -------- ----------
Liabilities and preference shares totalling GBP5,702k were
converted into 71,277k 8p preference shares on 28 August 2013. The
preference shares are non-voting, non-convertible redeemable
preference shares currently redeemable at par value on 31 December
2023, or, at the Company's discretion, at any earlier date. T he
Preference Shares accrue interest at a fixed rate of 10% per
annum.
5 Cash used in operations
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2023 2022 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Loss before taxation (527) (775) (1,419)
Adjustments for:
Depreciation and amortisation 90 97 212
Share based payment charge 2 6 12
Interest expense 383 321 696
Changes in working capital:
(Increase)/decrease in inventories (17) 41 49
(Increase)/decrease in trade and
other receivables (59) (264) 41
(Decrease)/increase in trade and
other payables (119) 309 236
Net cash used in operations (247) (265) (173)
------------------------------------ ------------------- -------------------- ----------------------
6 Shareholder information
The interim announcement will be published on the company's
website www.mobiletornado.com on 28 September 2023.
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END
IR BLGDCUXDDGXR
(END) Dow Jones Newswires
September 28, 2023 02:00 ET (06:00 GMT)
Mobile Tornado (LSE:MBT)
過去 株価チャート
から 12 2024 まで 1 2025
Mobile Tornado (LSE:MBT)
過去 株価チャート
から 1 2024 まで 1 2025
