Mobile Tornado losses rise

The Harrogate-based firm said revenue fell 34 per cent to £1.75m in the year to December 31 although recurring revenue rose 45 per cent to £1.2m following the commercial launch of services in Canada, Mexico and Brazil.

The group said it has seen further growth across the Americas and has started work in Ecuador and services are expected to begin in Columbia in the next few months.

CEO Jeremy Fenn said the group has started a restructuring to re-focus the business on its key markets and customers and deliver annualised savings of around £1m.

“The outlook remains positive for the business as recurring revenue levels continue to increase,” he said.

“The macro picture is also positive and we have developed one of the leading technical platforms in this space. The current year has started in line with our expectations and I look forward to further updates as the year progresses.”

Mobile Tornado reported increased interest from mobile network operators around the globe for its instant communications platform which includes the company’s Push-to-Talk application.

“These operators are seeking revenue opportunities from their own customer base and Mobile Tornado’s highly reliable, feature-rich, instant communications platform and applications allows them to differentiate their offerings and drive greater share of wallet from their customers,” said Mr Fenn.

The group said that having originally introduced its technology to the market in early 2000, it has historically experienced delays in its adoption.

However over the past few years, agreements with leading operators around the world have resulted in increased adoption of Mobile Tornado’s technology and a rise in recurring revenues.