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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Mobile Tornado Group Plc | LSE:MBT | London | Ordinary Share | GB00B01RQV23 | ORD 2P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 1.00 | 0.75 | 1.15 | 0.00 | 07:30:21 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Investors, Nec | 2.28M | -1.38M | -0.0033 | -3.03 | 4.18M |
From Apr 2019 to Apr 2024
TIDMMBT
RNS Number : 0310S
Mobile Tornado Group PLC
28 September 2017
Mobile Tornado Group plc
("Mobile Tornado", the "Company" or the "Group")
Half Yearly Report
Mobile Tornado (AIM: MBT), the instant communications services provider for mobile devices, announces its unaudited results for the 6 month period to 30 June 2017.
Financial Highlights
-- Total revenue increased by 21% to GBP1.11m (H1 2016: GBP0.92m)
o Recurring revenue increased by 24% to GBP1.04m (H1 2016: GBP0.84m)
-- Operating expenses increased by 14% to GBP2.09m (H1 2016: GBP1.83m)
o adversely impacted by the depreciation of sterling
-- Adjusted EBITDA* loss of GBP1.04m (H1 2016: GBP0.96m) -- Group operating loss of GBP1.12m (H1 2016: GBP1.53m) -- Loss after tax of GBP1.06m (H1 2016: GBP1.56m) -- Basic loss per share of 0.42p (H1 2016: 0.63p) -- Cash and cash equivalents of GBP0.25m (H1 2016: GBP0.17m)
o Completed a placing to raise a total of GBP1.19m before expenses in April 2017
*excluding exchange differences and exceptional items
Operating highlights
-- Full commercial launches with two Mobile Network Operator ("MNO") customers in South Africa
-- Established trading relationships with two independent Push to Talk ("PTT") operators in South America
-- Completed the development of new Instant Communication platform, with significantly higher capacity and additional user features
Hot Features
Premium
-- Software Development Kit ("SDK") upgraded and released to market
-- Development of the new Dispatch Console (MDC200) completed and released to market
Jeremy Fenn, Chairman of Mobile Tornado, commented: "The improvements we have made to our platform over the last 12 months have been borne out by the recent wins in the Middle East and the increasing number of tenders we have been asked to participate in. Further evidence that adoption of PoC is accelerating was provided by the recent acquisition of Kodiak Networks, one of our principle competitors, by Motorola Solutions.
"I am confident that our experienced management team led by Avi Tooba, our recently appointed CEO, place the Company in a strong position as the market develops. We look forward to the balance of this year and the Company's prospects in 2018 and beyond. "
Enquiries:
Mobile Tornado Group plc www.mobiletornado.com
Jeremy Fenn, Chairman +44 (0)7734 475 888
Investec Bank plc (Nominated
Adviser & Broker) +44 (0)20 7597 5970
Andrew Pinder / Carlton Nelson/
Sebastian Lawrence
Walbrook PR Ltd +44 (0)20 7933 8780
or
Paul Cornelius / Helen Cresswell mobiletornado@walbrookpr.com
Chairman's report
Financial results
Total reported turnover in the six-month period to 30 June 2017 increased by 21% to GBP1.11m (H1 2016: GBP0.92m). This increase was aided by the depreciation of Sterling during the period and at a constant currency level was an increase of 11% on the comparative period. Recurring revenues, a key performance indicator for the business, continued its upwards trajectory and increased 24% to GBP1.04m (H1 2016: GBP0.84m) as reported, and by 13% at a constant currency level. Non-recurring revenues, comprising installation fees and professional services, decreased slightly to GBP0.07m (H1 2016: GBP0.08m). As a result, gross profit increased 20% to GBP1.05m (H1 2016: GBP0.87m).
The majority of our operating expenses are denominated in New Israeli Shekels and whilst our underlying operating cost-base remained largely unchanged over the comparative period on a like-for-like basis, our reported operating expenses increased by 14% to GBP2.09m (H1 2016: GBP1.83m) due primarily to the depreciation of Sterling during the period.
The Group reported an unrealised foreign exchange gain of GBP0.07m (H1 2016: GBP0.42m loss) and recorded a net income tax credit in respect of our qualifying investment in R&D activities during the period of GBP0.38m (H1 2016: GBP0.28m).
As a result of all the above, the loss after tax for the period decreased to GBP1.06m (H1 2016: Loss GBP1.56m).
The net cash outflow from operating activities during the period increased to GBP1.42m (H1 2016: GBP0.82m) resulting in cash and cash equivalents as at 30 June 2017 of GBP0.25m (H1 2016: GBP0.17m). As at 30 June 2017, the Group had net debt of GBP9.71m (30 June 2016: GBP7.75m). Of this net debt figure, GBP7.87m is in respect of preference shares and associated unpaid accrued interest, held by Intechnology plc, our majority shareholder. The preference shares are redeemable at par value on 31 December 2018, or, at the Company's discretion, at any earlier date.
Review of operations
I'm pleased to report a period of solid operational progress across the business.
We have seen full commercial launches from our two Mobile Network Operator ('MNO') customers in South Africa having successfully commissioned and deployed dedicated server platforms for both customers. Discussions have also commenced with one of the MNOs to explore the roll out of services across other African countries.
In South America we continue to work with one of the major MNOs operating in that territory and have now established trading relationships with two other independent Push to Talk ("PTT") operators. There is a huge market for PTT in LATAM and we are continuing to strengthen our position to ensure we can take full advantage of the opportunity as it develops.
In the Middle East we have concluded a deal with an MNO that had previously deployed the iDEN platform. As reported previously, this technology is being closed down over the next couple of years, and we hope to work with this MNO to enable them to replace their legacy MNO systems with our own platform. We are in discussions with several other MNOs in LATAM, Middle East and Europe.
We continued to invest heavily in our research and development activities. A significant proportion of our cost-base is devoted to our engineering teams based at our development centres in Israel, Ukraine and India. Our new leadership team has been focused on recruiting the engineers needed to move the business forward across a number of areas and we are delighted with the advances that have been made.
During the period we also completed the development of our new Instant Communication platform, with significantly higher capacity and additional user features. We intend during the second half of the year to release a new line of lower cost server platforms for small and medium organisations. These systems will facilitate the replacement of legacy radio systems, saving initial installation costs and significantly reduce annual operating costs.
Our Software Development Kit ('SDK') was upgraded and released to the market during the first half. The SDK is currently being used by several partners, who are working to integrate our PTT solution with existing workforce management applications. The partners operate across a number of sectors including security, logistics and transportation. I am hopeful that we will see positive results soon, and begin to access significant deployed customer bases quickly and effectively.
The development of the new Dispatch Console (MDC200) was completed and released to the market. It is being tested by a number of customers around the world and the initial feedback has been excellent.
With regard to hardware, we introduced several new low cost ruggedised devices, manufactured by our partners, and sold through our customers in developing countries, primarily South America and Africa. As cost is a primary issue in these territories, it is encouraging to see the price levels falling significantly, making our proposition even more compelling to prospective customers. Later this year, we plan to introduce screen-less 3G and 4G devices to compete with low cost radio devices. The initial response from our partners to the early prototypes has been very encouraging.
Funding & going concern
The Company completed a placing on 27 April 2017 of 23.8 million shares at 5p per share to raise a total of GBP1.19m before expenses. The Directors subscribed for 12,000,000 shares comprising 50.4% of the issue. The Directors believe that the Group has sufficient working capital for the foreseeable future, which also takes into consideration its currently contracted revenues, anticipated contracts and the continued support of Intechnology plc, our majority shareholder.
Outlook
The macro outlook for our business continues to strengthen. With the global roll out of 3G/4G networks worldwide, users now have the option to use PoC for their instant communication requirements, instead of traditional radio platforms such as LMR, DMR and iDEN. The transition will intensify as the last iDEN systems shut down around the world and MNOs extend their LTE coverage.
At the same time, an increasing number of device manufacturers are adding PoC devices to their portfolio, which is bringing the prices down and allowing for greater penetration in developing countries. We are well placed, with customers and partners in each of the key territories, to take advantage of this emerging trend.
The improvements we have made to our platform over the last 12 months have been borne out by the recent wins in the Middle East and the increasing number of tenders we have been asked to participate in. Further evidence that adoption of PoC is accelerating was provided by the recent acquisition of Kodiak Networks, one of our principle competitors, by Motorola Solutions.
I am confident that our experienced management team led by Avi Tooba, our recently appointed CEO, place the Company in a strong position as the market develops. We look forward to the balance of this year and the Company's prospects in 2018 and beyond.
Jeremy Fenn
Chairman
28 September 2017
Consolidated income statement
For the six months ended 30 June 2017
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2017 2016 2016
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Continuing Operations
Revenue 1,106 915 2,024
--------------------------------- ------------- --------------- ---------------
Cost of sales (57) (41) (103)
--------------------------------- ------------- --------------- ---------------
Gross profit 1,049 874 1,921
Other operating expenses (2,085) (1,833) (3,885)
Group operating loss before
exchange differences,
exceptional items, depreciation
and amortisation expense (1,036) (959) (1,964)
--------------------------------- ------------- --------------- ---------------
Exchange differences 66 (421) (642)
Exceptional items (88) (86) (276)
Depreciation and amortisation
expense (65) (66) (203)
Total operating expenses (2,172) (2,406) (5,006)
Group operating loss (1,123) (1,532) (3,085)
Finance costs (315) (307) (640)
Loss before tax (1,438) (1,839) (3,725)
Income tax credit 375 277 277
Loss for the period (1,063) (1,562) (3,448)
--------------------------------- ------------- --------------- ---------------
Loss per share (pence)
Basic and diluted (0.42) (0.63) (1.39)
--------------------------------- ------------- --------------- ---------------
Consolidated statement of comprehensive income
For the six months ended 30 June 2017
Year
Six months Six months ended
ended ended ended
30 June 30 June 31 December
2017 2016 2016
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Loss for the period (1,063) (1,562) (3,448)
Other comprehensive
income
Exchange differences
on translation
of foreign operations 25 (37) (71)
Total comprehensive
loss for the period (1,038) (1,599) (3,519)
------------------------ ----------- ----------- ------------
Consolidated statement of changes in equity
For the six months ended 30 June 2017
Reverse
Share Share acquisition Merger Translation Retained Total
capital premium reserve reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
January
2016 4,951 12,012 (7,620) 10,938 (2,183) (29,239) (11,141)
Equity settled
share-based
payments - - - - - 16 16
Transactions
with
owners - - - - - 16 16
Loss for the
period - - - - - (1,562) (1,562)
Exchange
differences
on translation
of foreign
operations - - - - (37) - (37)
Total
comprehensive
loss
for the period - - - - (37) (1,562) (1,599)
Balance at 30
June
2016 4,951 12,012 (7,620) 10,938 (2,220) (30,785) (12,724)
--------------- ------------- --------------- ----------------- --------------- ------------------ ----------------- -----------------
Reverse
Share Share acquisition Merger Translation Retained Total
capital premium reserve reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
July
2016 4,951 12,012 (7,620) 10,938 (2,220) (30,785) (12,724)
Equity settled
share-based
payments - - - - - 7 7
Transactions
with
owners - - - - - 7 7
Loss for the
period - - - - - (1,886) (1,886)
Exchange
differences
on translation
of foreign
operations - - - - (34) - (34)
Total
comprehensive
loss
for the period - - - - (34) (1,886) (1,920)
Balance at 31
December
2016 4,951 12,012 (7,620) 10,938 (2,254) (32,664) (14,637)
--------------- ------------- --------------- ----------------- --------------- ------------------ ----------------- -----------------
Reverse
Share Share acquisition Merger Translation Retained Total
capital premium reserve reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
January
2017 4,951 12,012 (7,620) 10,938 (2,254) (32,664) (14,637)
Equity settled
share-based
payments - - - - - 18 18
Issue of share
capital 476 660 - - - - 1,136
Transactions
with
owners 476 660 - - - 18 1,154
Loss for the
period - - - - - (1,063) (1,063)
Exchange
differences
on translation
of foreign
operations - - - - 25 - 25
Total
comprehensive
loss
for the period - - - - 25 (1,063) (1,038)
Balance at 30
June
2017 5,427 12,672 (7,620) 10,938 (2,229) (33,709) (14,521)
--------------- ------------- --------------- ----------------- --------------- ------------------ ----------------- -----------------
Consolidated balance sheet
As at 30 June 2017
30 June 30 June 31 December
2017 2016 2016
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Property, plant
& equipment 281 297 294
Intangible assets 144 187 162
425 484 456
--------------------------- ---------- ------------------- -------------------
Current assets
Trade and other
receivables 1,338 1,266 1,313
Inventories 1 32 -
Tax debtor 431 - -
Cash and cash equivalents 248 168 165
--------------------------- ---------- ------------------- -------------------
2,018 1,466 1,478
--------------------------- ---------- ------------------- -------------------
Liabilities
Current liabilities
Trade and other
payables (4,526) (4,248) (4,719)
Borrowings (4,402) (2,377) (3,667)
Net current liabilities (6,910) (5,159) (6,908)
--------------------------- ---------- ------------------- -------------------
Non-current liabilities
Trade and other
payables (2,476) (2,512) (2,625)
Borrowings (5,560) (5,537) (5,560)
(8,036) (8,049) (8,185)
--------------------------- ---------- ------------------- -------------------
Net liabilities (14,521) (12,724) (14,637)
--------------------------- ---------- ------------------- -------------------
Shareholders' equity
Share capital 5,427 4,951 4,951
Share premium 12,672 12,012 12,012
Reverse acquisition
reserve (7,620) (7,620) (7,620)
Merger reserve 10,938 10,938 10,938
Foreign currency
translation reserve (2,229) (2,220) (2,254)
Retained earnings (33,709) (30,785) (32,664)
Total equity (14,521) (12,724) (14,637)
--------------------------- ---------- ------------------- -------------------
Consolidated cash flow statement
For the six months ended 30 June 2017
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2017 2016 2016
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Operating activities
Cash used in operations (1,419) (815) (1,721)
Tax credit received - 277 277
Net cash used in operating
activities (1,419) (538) (1,444)
---------------------------- ---------------- ---------------- -----------------
Investing activities
Purchase of property,
plant & equipment (48) (20) (108)
Purchase of intangible
assets - (80) (81)
Net cash used in investing
activities (48) (100) (189)
---------------------------- ---------------- ---------------- -----------------
Financing
Issue of ordinary share
capital 1,190 - -
Share issue costs (54) - -
Proceeds from borrowings 420 690 1,670
Net cash inflow from
financing 1,556 690 1,670
---------------- ---------------- -----------------
Effects of exchange rates
on cash
and cash equivalents (6) 9 21
---------------------------- ---------------- ---------------- -----------------
Net increase in cash
and
cash equivalents in the
period 83 61 58
Cash and cash equivalents
at beginning of period 165 107 107
Cash and cash equivalents
at end of period 248 168 165
---------------------------- ---------------- ---------------- -----------------
Notes to the interim report
For the six months ended 30 June 2017
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 2016 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 2017. 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 2016. 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 GBP1,063,000 (30 June 2016: GBP1,562,000, 31 December 2016: GBP3,448,000) by the weighted average number of ordinary shares in issue during the period of 255,311,200 (30 June 2016: 247,553,189, 31 December 2016: 247,553,189).
Six months Six months
ended ended Year ended
30 June 31 December
30 June 2017 2016 2016
Unaudited Unaudited Audited
Basic and Basic and Basic and
diluted diluted diluted
Loss Loss Loss Loss Loss Loss
per per per
share share share
GBP'000 pence GBP'000 pence GBP'000 pence
Loss attributable
to
ordinary shareholders (1,063) (0.42) (1,562) (0.63) (3,448) (1.39)
----------------------- --------- ---------- --------- ------------ ----------- -----------
4 Share capital and share premium
Number
of Share Share Total
shares capital premium
'000 GBP'000 GBP'000 GBP'000
At 1 January 2016, 30 June
2016
& 31 December 2016 247,553 4,951 12,012 16,963
Issue of shares 23,800 476 660 1,136
---------------------------- ------------- ----------- ------------ -----------
At 30 June 2017 271,353 5,427 12,672 18,099
---------------------------- ------------- ----------- ------------ -----------
Non-voting preference shares
Number
of Nominal
shares Value
'000 GBP'000
At 30 June 2016, 31 December
2016 and 30 June 2017 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 redeemable at par value on 31 December 2018, or, at the Company's discretion, at any earlier date. The 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
2017 2016 2016
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Loss before taxation (1,438) (1,839) (3,725)
Adjustments for:
Depreciation 65 66 203
Share based payment charge 18 16 23
Interest expense 315 307 640
Changes in working capital:
(Increase)/Decrease in
inventories (1) (1) 31
(Increase)/Decrease in
trade and other receivables (108) 18 38
(Decrease)/Increase in
trade and other payables (270) 618 1,069
Net cash used in operations (1,419) (815) (1,721)
------------------------------ ----------------- ------------------- --------------------
6 Shareholder information
The interim announcement will be published on the company's website www.mobiletornado.com on 28 September 2017.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BCGDCUSDBGRR
(END) Dow Jones Newswires
September 28, 2017 02:01 ET (06:01 GMT)
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