REG - Mobile Tornado Group - Final Results
20/06/2024 07:00
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RNS Number : 1348T Mobile Tornado Group PLC 20 June 2024
20 June 2024
Mobile Tornado Group plc
("Mobile Tornado", the "Company" or the "Group")
2023 Final results
Mobile Tornado Group plc, a leading provider of resource management mobile
solutions to the enterprise market, announces its audited results for the year
ended 31 December 2023.
Financial Highlights
2023 2022
£'000 £'000
Recurring revenue 1,852 1,969
Non-recurring revenue* 414 310
Total revenue 2,266 2,279
Gross profit 2,080 2,223
Administrative expenses** (2,328) (2,507)
Adjusted EBITDA*** (248) (284)
Group operating loss (293) (723)
Loss before tax (1,072) (1,419)
· Total revenue decreased by 1% to £2.27m (2022: £2.28m)
o Recurring revenues decreased by 6% to £1.85m (2022: £1.97m)
o Non-recurring revenues* increased by 34% to £0.41m (2022: £0.31m)
· Gross profit decreased by 6% to £2.08m (2022: £2.22m)
· Administrative expenses before depreciation, amortisation,
exceptional items and exchange differences decreased by 7% to £2.33m (2022:
£2.51m)
· Adjusted EBITDA** loss of £0.25m (2022: loss of £0.28m)
· Group operating loss for the year decreased to £0.29m (2022:
£0.72m)
· Loss after tax of £0.99m (2022: loss of £1.38m)
· Basic loss per share of 0.24p (2022: loss of 0.36p)
· Cash at bank at 31 December 2023 of £0.19m (31 December 2022:
£0.15m) with net debt of £10.67m (2022: £10.44m)
* Non-recurring revenues comprise installation fees, hardware, professional
services and capex license fees
** Administrative expenses excludes depreciation, amortisation and exchange
differences
***Earnings before interest, tax, depreciation, amortisation, exceptional
items and excluding exchange rate differences
Operating highlights
· Business development strategy launched in early 2023 delivers
wider partner network and significantly enhanced market presence through trade
show programme and outreach campaign
· Deal closed in Middle East with leading mobile network operator
("MNO")
· Partner deals agreed with major industry players including
Ericsson, Radiocomms and Barcode Warehouse
· £500k equity fundraise concluded in March 2023 to support the
scale up of sales, marketing and business development activities
· End customer deals concluded with Leeds Bradford airport, major
electricity utility company in Mexico, national security company in South
Africa, international hotel group in the Caribbean and Northern Trains in the
UK
Jeremy Fenn, Chairman and acting CEO of Mobile Tornado, said: "The strategy we
launched in early 2023 to widen our network of industry partners, strengthen
existing partner relationships, and establish a presence in new international
markets has been successful. We have significantly expanded our addressable
market over the last 18 months and the plan is to continue investing in this
strategy as we move through this year and into 2025.
"The market in which we operate continues to gather momentum as network
coverage and connectivity improve, making PTToC a genuine alternative to
traditional radio systems for those customers seeking real time communications
for their remote teams. We will continue evolving our platform to ensure it
maintains its technical advantages and meets the requirements of customers.
"The Board is focused on growing the Company's recurring revenues as this will
be the primary driver for delivering increased shareholder value. We are now
engaged with significantly more partners and end customers than we were 18
months ago, and I am hopeful that these relationships will begin to deliver
material uplifts in revenue as we move forward."
Enquiries:
Mobile Tornado Group plc www.mobiletornado.com (http://www.mobiletornado.com)
Jeremy Fenn, Chairman and acting CEO +44 (0)7734 475 888
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 and key performance indicators
Total revenue for the year ended 31 December 2023 decreased by 1% to £2.27m
(2022: £2.28m). Recurring revenues decreased by 6% to £1.85m (2022:
£1.97m). This was the result of a renegotiated exclusive contract with our
partner in South Africa in order that they can provide a more competitively
priced proposition with a view to generating higher sales volumes in due
course.
Non-recurring revenues, comprising installation fees, hardware, professional
services and capex license fees increased to £0.41m (2022: £0.31m). As a
result, gross profit decreased by 6% to £2.08m (2022: £2.22m).
Administrative expenses before depreciation, amortisation, exceptional items
and exchange differences in the year decreased by 7% to £2.33m (2022:
£2.51m), reflecting the continued positive impact that further investment in
the development and operating efficiencies of our enhanced technical platform
have delivered.
Due to the annual retranslation of certain financial liabilities on the
balance sheet, the Group reported a translation gain of £0.08m (2022: loss of
£0.23m) arising from the appreciation of Sterling relative to both the Euro
and the US Dollar as at 31 December 2023 versus the previous year end. The
Group recorded a net income tax credit of £0.08m (2022: credit of £0.04m).
The loss after tax for the year decreased to £0.99m (2022: loss of £1.38m)
equating to a basic loss per share of 0.24p (2022: 0.36p).
The net cash used in operations increased to £0.19m (2022: £0.17m). At 31
December 2023, the Group had £0.19m cash at bank (2022: £0.15m) and net debt
of £10.67m (31 December 2022: £10.44m).
The balance sheet continues to reflect the cumulative loss position of the
Group, and those net liabilities that have resulted from this. We continue to
hold levels of debt in the Group which have funded these historical losses.
Results and dividends
The Directors do not recommend the payment of a dividend in respect of the
year ended 31 December 2023 (year ended 31 December 2022: nil). The Company
currently intends to reinvest future earnings to finance the growth of the
business over the near term.
Review of operations
Results review
During the year the business has made excellent progress in laying the
foundations to drive future growth. Whilst the financial results were broadly
in line with the prior year, there has been significant investment into our
business development activities across the period, that will deliver improving
top line sales growth this year and beyond.
A small decrease in the recurring revenue stream was driven by a renegotiated
exclusive contract with our partner in South Africa. As a result of economic
pressures in that territory, we adjusted the commercial terms with our partner
in order that they can provide a more competitively priced proposition with a
view to generating higher sales volumes in due course.
The 34% uplift in non-recurring revenues reflects the renewals on existing
capex-based license deals.
Business development focus
As previously reported, we made some changes to the management team in the
early part of 2023, with a view to delivering greater focus and resourcing of
our business development activities. This has been driven by an investment in
a number of trade shows supported by an extensive marketing outreach
programme. During the last 18 months we attended the key critical
communication trade shows in Dubai, Helsinki, Orlando, Cologne, Barcelona,
Johannesburg and Belize. Investment in this programme of events has been
supported by further efficiencies across the operation driven by a further
shift in resource to our lower cost research and development centres.
The Board now feels the right balance has been established between driving
continued technical excellence in the platform, with a more commercial
approach to presenting that proposition to the market.
New partners
The success of the programme has been illustrated by the signing of agreements
with new partners in the USA, UK, Germany, Iraq, KSA, Colombia, Kenya, Morocco
and UAE. Although we operate a capital efficient model of partnering with
regional specialists, we have expanded our in-house team of account managers
and pre-sale technical teams to manage the uplift in activity.
Alongside the expansion of our network of global partners, we also executed an
agreement to participate in the Ericsson Software Enterprise Partner Program,
which is focused on helping their customers to improve business critical
communications, safety and productivity.
A reseller agreement was also signed with The Barcode Warehouse, the UK's
leading specialist provider of barcode technology, RFID (radio frequency
identification) and enterprise mobility solutions, allowing the Company's
solution to be made available to a wide range of sectors including education,
healthcare, logistics, manufacturing, retail and utilities.
Radiocoms Systems, the UK's leading independent communications supplier
specializing in the design, commissioning, deployment and maintenance of
wireless, video and data networks, were also signed up as a reseller.
Mobile Network Operator ('MNO') deal
During the period we worked closely with one of our new partners in the Middle
East on a deal with one of the territory's principal MNOs. In May 2024, we
announced that the Company had secured a contract through this regional
partner to supply our solution to this MNO, which serves over 50 million
active individual and business customers. This deal followed a competitive
procurement process involving globally recognised telecoms companies, with our
platform selected to deliver PTToC, lone worker and live video communications
services.
Having identified the Middle East as a key market for business development,
this deal provides us with a platform for expansion across multiple
territories. Winning this deal against global OEMs is a testament to the
quality of our solutions and provides us with a high quality and credible
reference point for other MNO opportunities.
Current partners
Our partner in South and Central America has continued to focus on the
deployment of the solution to public safety organisations. Progress has been
frustratingly slow, but we understand that final confirmation around the
hardware that will be deployed alongside our platform is being processed and
this should facilitate full commercial roll out during this financial year.
We are working with partners on a number of other public safety organisations
and have recently deployed a solution to a small police force in the
Caribbean. Once again, the quality of our solution and the relative cost
compared to traditional radio platforms is attracting a lot of interest across
the developing world.
In Mexico, we have worked with our partner on several major tenders and were
delighted to recently secure a deal to supply one of the country's national
electricity companies with our solution. The deal provides for the deployment
of 2,800 licenses initially, with an expectation that this will grow over
time.
Our UK partner signed a deal with Leeds Bradford airport ('LBA'), to provide
their ground operations staff with our full PTToC solution. The solution has
performed well with further expansion planned for airside operations during
2024. In addition, they have also recently signed a partnership agreement
with Amulet, a specialist intelligence-led security company. Amulet work with
a number of train companies and have initially deployed the solution to
security officers at Northern Trains. Unlike legacy two-way radio systems, our
technology uses cellular networks, enabling reliable coverage, through the
seamless switching between 2G, 3G, 4G and 5G mobile and WIFI. In addition to
improved communication, our solution also provides a suite of lone worker
capabilities, including emergency alerts, activity monitoring, impact
detection and keep-alive check-in. These functions will be deployed in phase 2
alongside the dispatch console into the control room at Manchester Victoria
station.
As detailed above, we amended the commercial terms with our exclusive partner
in South Africa, to ensure we can compete in a market that has been impacted
by the economic challenges within the country. The expectation is that we will
be better placed to secure a significantly higher volume of licenses moving
forward. We have started to see this come through with a major security
company recently signing a deal for several thousand licenses. The revised
agreement also provides for us to act as the exclusive UK reseller for their
PTX personnel management platform, which allows the simple and effective
management of employees, helping to improve operational efficiencies and
productivity as well as reducing costs. This deal has allowed the Company to
reduce the resources currently allocated to the development of our own
workforce management platform.
In the Caribbean, our partner has developed positive sales momentum,
concluding deals with major hotel groups, security companies and airports.
Research and Development
We have continued to invest significant resources into our technical platform.
There is a continuing focus on ensuring all development work is delivered
efficiently, and with this in mind, we continue to develop and expand our
R&D centre in India.
As we have developed our business development activity, we have been involved
in many more commercial opportunities, which are starting to convert into
completed deals. It's clear, and worth repeating, that the quality of our
platform continues to be the primary driver for this success.
Our PoC platform provides a carrier class mission-critical communications
solution, distinguished by the following key attributes:
Seamless transition - our platform ensures uninterrupted communication between
different networks or coverage zones allowing users to maintain constant
connectivity, enabling efficient collaboration across teams, regardless of
location or network conditions.
Market-leading group sizes - our platform supports larger group sizes compared
to competing solutions, making it ideal for organizations with extensive teams
or complex communication requirements. The solution can manage group sizes of
5,000+ compared to competing products that are limited to several hundred.
Dispatcher console - the dispatcher console is a centralized, user-friendly
interface that allows for efficient coordination and management of
communication channels. It enables dispatchers to monitor and control
conversations, prioritize messages, and allocate resources, ensuring smooth
communication flow and rapid response times during critical situations. Our
console can manage 64 groups simultaneously, which we believe puts us ahead of
all competing platforms.
Data utilization - our platform optimizes data usage by employing advanced
compression techniques and minimizing bandwidth consumption. This results in
cost savings for customers while maintaining high-quality voice and data
transmission. Additionally, the platform's efficient data management allows
for seamless integration with other systems, further enhancing its versatility
and adaptability to various organizational needs.
During 2023, the development team added sophisticated lone worker
functionality to the platform and provided the capability for live video
streaming. Both features were key requirements for securing the recently
announced MNO deal in the Middle East, illustrating our focus on developing
new functionality to meet clear commercial and customer needs.
Board Appointments
The Board is pleased to confirm the appointment of Luke Wilkinson as Chief
Operating Officer and Marcus Emptage as Finance Director.
Luke joined the business in January 2023 as Head of Business Development. He
has significantly widened the Company's partner network and developed a
sophisticated outreach programme to promote the company's solutions to the
global critical communications market. The success of the strategy has been
borne out with the recent signing of a major MNO in one of the Company's key
target markets.
Marcus has been Financial Controller for the business since 2006. He is a
qualified chartered accountant.
Funding
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
£500,000. The Company also announced the capitalisation of £259,490 of
indebtedness owed by the Company to InTechnology plc into 12,974,492 new
Ordinary Shares, also at 2 pence per share.
The £500k equity funding was directed towards enhancing our business
development activities, including the participation in major industry trade
shows and the recruitment of additional sales professionals to manage the
increasing portfolio of partners.
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 £500,000. The balance drawn down at 31 December 2023 and at today's
date is £150,000.
In November 2023, InTechnology plc transferred its entire holding of Mobile
Tornado's ordinary shares of 2p each to Holf Investments Ltd ("Holf"). Holf is
100% owned by Peter Wilkinson and his family. Following this transfer, Peter
Wilkinson has a total direct and indirect beneficial interest in 58.44% of
Mobile Tornado's issued share capital.
On the same date, InTechnology plc also transferred a significant amount of
Mobile Tornado's total indebtedness to Holf. This indebtedness comprises:
£5.7 million of redeemable preference shares; £2.7 million of accrued
Preference Share coupon and interest; and £2.8m of loan indebtedness,
comprising historic short-term borrowings and rent and services incurred under
the services agreement. Following this transfer, all interest accruing under
the Preference Shares will accrue or be payable to Holf in accordance with
their existing terms. All other terms of the Preference Shares agreement
remain the same and as previously announced.
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.
Principal risks and uncertainties
The management of the business and the nature of the Group's strategy are
subject to a number of risks. The Directors have set out below the principal
risks facing the business. The Directors are of the opinion that a thorough
risk management process is adopted, which involves the formal review of all
the risks identified below. Where possible, processes are in place to monitor
and mitigate such risks.
Product obsolescence
Due to the nature of the market in which the Group operates, products are
subject to technological advances and as a result, obsolescence. The Directors
are committed to the Group's current research and development strategy and are
confident that the Group can react effectively to developments within the
market.
Indirect route to market
As described above, one of the Group's primary channels to market are MNOs
reselling our services to their enterprise customers. Whilst MNOs are ideally
positioned to forward sell our services and are likely to possess material
resources for doing so, there remains an inherent uncertainty arising from the
Group's inability to exert full control over the sales and marketing
strategies of these customers.
Going concern
The Financial Statements are prepared on a going concern basis.
When determining the adoption of this approach, the Directors have considered
a wide range of information relating to present and future conditions,
including the current state of the Balance Sheet, that support offered by our
principal shareholder Holf Investments Ltd, who have agreed not to call on
existing loans and borrowings totaling £10,640,000, together with the
existing £500,000 working capital facility with Intechnology plc. Further
consideration has been given to future projections, cash flow forecasts,
access to funding, ability to successfully secure additional investment,
available mitigating actions and the medium-term strategy of the business.
The Group is dependent on its ability to meet its cash flow forecasts.
Within those forecasts the Group has included a number of significant payments
and receipts based on its best estimate but, as with all forecasts, there does
exist some uncertainty as to the timing and size of those payments and
receipts. In particular, the forecasts assume the ongoing deferral and phased
payment of some of the Group's creditors, including a contingent consideration
balance of £2,675,000, (as disclosed in note 12 to the financial statements),
and the continuation at the current level of recurring and non-recurring
revenues. In the event that some or all of these receipts are delayed,
deferred or reduced, or payments not deferred, management has considered the
actions that it would need to take to conserve cash. These actions would
include significant cost savings (principally payroll based) and/or seeking
additional funding from its shareholders, for which there is currently no
shareholder commitment requested. These conditions, together with the other
matters explained in note 1 to the financial statements, indicate the
existence of a material uncertainty which may cast significant doubt about the
Group's ability to continue as a going concern. The financial statements do
not include the adjustments that would result if the Group was unable to
continue as a going concern.
The Directors, whilst noting the existence of a material uncertainty and
having considered the possible management actions as noted above, are of the
view that the Group is a going concern and will be able to meet its debts as
and when they fall due for a period of at least 12 months from the date of
signing these accounts.
Section 172 statement - our stakeholders
The Board recognises its duty to consider the needs and concerns of the
Group's key stakeholders during its discussions and decision-making. The Board
has had regard to the importance of fostering relationships with its
stakeholders as set out below, and also detailed in the Corporate Governance
section of this Annual Report.
Colleagues
We have an experienced, and dedicated workforce which we recognise as the key
asset of our business. It is vital to the success of the Group to continue to
create the right environment to encourage and create opportunities for
individuals and teams to realise their full potential. The Board and
management team pay close attention to employee feedback and seek to respond
constructively to any suggestions or concerns raised.
Regular colleague briefing sessions are held with the Executive Chairman to
enable colleagues to ask questions and raise issues and for colleagues to be
provided with updates on the business. Key performance information such as
trading updates and financial results are always promptly communicated to
colleagues. The Group has in place a share option scheme to enable colleagues
to become personally invested as shareholders of the Group.
Customers
Regular communication takes place with the Group's partners and customers to
discuss operational updates, product roadmap developments and gain key
customer feedback. This enables increased engagement with customers at a
strategic level and a greater understanding of both customer pain points and
future requirements from strategic to end-user level.
Strategy
The Group continues to invest in an R&D strategy, current details of which
are provided in paragraph six of the review of operations.
Suppliers
The Board is committed to building trusted partnerships with the Group's
suppliers. Through these partnerships, we deliver value and quality to our
other stakeholders.
Shareholders
The Executive Chairman holds analyst and investor roadshow meetings during the
year, particularly following the release of the Group's interim and full year
results and feedback from those meetings is shared with the Board. The AGM is
a key opportunity for engagement between the Board and shareholders,
particularly private shareholders. The Group's annual report and accounts is
made available to all shareholders both online and in hard copy where
requested. All presentations and announcements and other key shareholder
information is available on the investor section of the Group's website.
Outlook
The strategy we launched in early 2023 to widen our network of industry
partners, strengthen existing partner relationships, and establish a presence
in new international markets has been successful. We have significantly
expanded our addressable market over the last 18 months and the plan is to
continue investing in this strategy as we move through this year and into
2025.
The market in which we operate continues to gather momentum as network
coverage and connectivity improve, making PTToC a genuine alternative to
traditional radio systems for those customers seeking real time communications
for their remote teams. We will continue evolving our platform to ensure it
maintains its technical advantages and meets the requirements of customers.
The Board is focused on growing the Company's recurring revenues as this will
be the primary driver for delivering increased shareholder value. We are now
engaged with significantly more partners and end customers than we were 18
months ago, and I am hopeful that these relationships will begin to deliver
material uplifts in revenue as we move forward.
I would like to welcome Luke and Marcus to the Board and thank them and our
whole team for their contribution across the last financial year. There is a
new dynamic and energy within the Company which I am hopeful will shortly
convert into tangible and improving financial results. I look forward to
updating shareholders as the year develops.
Approved by the Board of Directors and signed on behalf of the Board
Jeremy Fenn
Chairman
19 June 2024
Consolidated income statement
For the year ended 31 December 2023
2023 2022
£'000 £'000
Continuing operations
Revenue 2,266 2,279
Cost of sales (186) (56)
Gross profit 2,080 2,223
Operating expenses
Administrative expenses (2,328) (2,507)
Exchange differences 75 (227)
Depreciation and amortisation expense (120) (212)
Total operating expenses (2,373) (2,946)
Group operating loss before exchange differences,
depreciation and amortisation expense (248) (284)
Group operating loss (293) (723)
Finance costs (779) (696)
Loss before tax (1,072) (1,419)
Income tax credit 80 37
Loss for the year (992) (1,382)
Loss per share (pence)
Basic and diluted (0.24) (0.36)
Consolidated statement of comprehensive income
For the year ended 31 December 2023
2023 2022
£'000 £'000
Loss for the year (992) (1,382)
Other comprehensive gain/(loss)
Item that will subsequently be reclassified
to profit or loss:
Exchange differences on translation
of foreign operations 28 (61)
Total comprehensive loss for the year (964) (1,443)
Attributable to:
Equity holders of the parent (964) (1,443)
Consolidated statement of financial
position
As at 31 December 2023
2023 2022
£'000 £'000
Assets
Non-current assets
Property, plant and equipment 135 155
Right-of-use assets 250 350
385 505
Current assets
Trade and other receivables 1,345 1,414
Inventories 13 25
Cash and cash equivalents 186 145
1,544 1,584
Liabilities
Current liabilities
Trade and other payables (5,376) (5,191)
Borrowings (10,840) (10,558)
Lease liabilities (110) (105)
Net current liabilities (14,782) (14,270)
Non-current liabilities
Trade and other payables (769) (1,076)
Borrowings (18) (27)
Lease liabilities (155) (258)
(942) (1,361)
Net liabilities (15,339) (15,126)
Equity attributable to the owners of the parent
Share capital 8,354 7,595
Share premium 15,797 15,797
Reverse acquisition reserve (7,620) (7,620)
Merger reserve 10,938 10,938
Foreign currency translation reserve (2,242) (2,270)
Accumulated losses (40,566) (39,566)
Total equity (15,339) (15,126)
Consolidated statement of changes in
equity
For the year ended 31 December 2023
Share Share Reverse acquisition Merger Foreign currency translation Accumulated Total
capital premium reserve reserve reserve Losses equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2022 7,595 15,797 (7,620) 10,938 (2,209) (38,196) (13,695)
Loss for the year - - - - - (1,382) (1,382)
Exchange differences on translation
of foreign operations - - - - (61) - (61)
Total comprehensive loss for the year - - - - (61) (1,382) (1,443)
Equity settled share-based payments - - - - - 12 12
Balance at 31 December 2022 7,595 15,797 (7,620) 10,938 (2,270) (39,566) (15,126)
Share Share Reverse acquisition Merger Foreign currency translation Accumulated Total
capital premium reserve reserve reserve Losses equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2023 7,595 15,797 (7,620) 10,938 (2,270) (39,566) (15,126)
Loss for the year - - - - - (992) (992)
Exchange differences on translation
of foreign operations - - - - 28 - 28
Total comprehensive loss for the year - - - - 28 (992) (964)
Issue of share capital 759 - - - - (10) 749
Equity settled share-based payments - - - - - 2 2
Balance at 31 December 2023 8,354 15,797 (7,620) 10,938 (2,242) (40,566) (15,339)
Consolidated statement of cash
flows
For the year ended 31 December 2023
2023 2022
£'000 £'000
Operating activities
Cash used in operations (129) (173)
Tax received 60 238
Interest paid - 9
Net cash (used in)/from operating activities (69) 74
Investing activities
Purchase of property, plant & equipment (7) (60)
Net cash used in investing activities (7) (60)
Financing activities
Issue of ordinary share capital 500 -
Share issue costs (10) -
Receipt of borrowings - 250
Repayment of borrowings (260) (10)
IFRS 16 leases (110) (180)
Net cash generated from financing activities 120 60
Effects of exchange rates on cash
and cash equivalents (3) 6
Net increase in cash and
cash equivalents in the year 41 80
Cash and cash equivalents at beginning of year 145 65
Cash and cash equivalents at end of year 186 145
Notes to the financial statements
1 Financial information
The financial information set out in this final results announcement does not
constitute statutory accounts within the meaning of s434 of the Companies Act
2006. Statutory accounts for the year ended 31 December 2023 will be made
available to shareholders for approval at the next Annual General Meeting. The
statutory accounts contain an unqualified audit report, which did not include
a statement under s498(2) or s498(3) of the Companies Act 2006 and will be
delivered to the Registrar of Companies.
The statutory accounts for the year ended 31 December 2022 which have been
delivered to the Registrar of Companies, contained an unqualified audit report
and did not include a statement under s498(2) or s498(3) of the Companies Act
2006.
2 Segmental analysis
The Group presents its results in accordance with internal management
reporting information to the chief operating decision maker (Board of
Directors). At 31 December 2023 the Board continued to monitor operating
results by category of revenue within a single operating segment, the
provision of instant communication solutions. Under IFRS 8 the Group has only
one operating segment.
Revenue by category
2023 2022
£'000 £'000
License fees 1,943 2,014
Hardware & software 273 178
Professional services - 26
Support & Maintenance 50 61
Total 2,266 2,279
2023 2022
£'000 £'000
Recurring 1,852 1,969
Non-recurring 414 310
Total 2,266 2,279
Revenue is reported by geographical location of customers. Non-current assets
are reported by geographical location of assets.
2023 2023 2022 2022
Non-current Non-current
Revenue assets Revenue assets
£'000 £'000 £'000 £'000
UK 27 - 31 -
Europe 165 - 99 -
North America 58 - 65 -
South America 1,283 - 1,341 -
Israel 483 385 351 505
Africa 242 - 382 -
Asia/Pacific 8 - 10 -
Total 2,266 385 2,279 505
Of the total revenue of the Group, three customers each represented revenue
greater than 10% of this total - these being 31% or £702,000 (2022: 30% or
£685,000), 26% or £580,000 (2022: 29% or £656,000) and 11% or £242,000
(2022: 17% or £382,000) respectively.
3 Loss per share
Basic loss per share is calculated by dividing the loss attributable to
ordinary shareholders of £992,000 (2022: £1,382,000) by the weighted average
number of ordinary shares in issue during the year of 412,101,271 (2022:
379,744,923).
2023 2022
Basic and diluted Basic and diluted
Loss Loss Loss Loss
per share per share
£'000 pence £'000 pence
Loss attributable to
ordinary shareholders (992) (0.24) (1,382) (0.36)
The loss attributable to ordinary shareholders and the weighted average number
of ordinary shares for the purpose of calculating the diluted earnings per
ordinary share are identical to those used for basic earnings per ordinary
share. This is because the exercise of share options are anti-dilutive under
the terms of IAS 33.
4 Annual General Meeting
The Annual General Meeting of the Company will be announced separately in due
course. The audited results for the year ended 31 December 2023 will be made
available to shareholders shortly and will be available on the Company's
website at www.mobiletornado.com (http://www.mobiletornado.com) at the same
time.
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