Mobile Tornado sees revenues remain stable despite Covid-19 impact on markets

Mobile phone technology provider Mobile Tornado said recurring revenues remained stable despite a "huge impact" across all of its main markets from Covid-19.
Mobile Tornado can turn mobile phones into walkie-talkies.Mobile Tornado can turn mobile phones into walkie-talkies.
Mobile Tornado can turn mobile phones into walkie-talkies.

The Harrogate-based firm currently expects revenues for the six months to December 31, 2020, to be approximately £1.23m with an approximate EBITDA loss of £190,000.

As a result, based on unaudited management accounts, the full year for 2020 is expected to show revenue of approximately £2.52m with an EBITDA loss of approximately £400,000.

Hide Ad
Hide Ad

Mobile Tornado said recurring revenues remained stable at around £2.03m, " demonstrating the quality and robustness of the underlying business".

It has been much more challenging to close out new business during the period, the firm said, particularly as two of the its most important markets, South America and South Africa, have been particularly severely impacted by the pandemic.

This made it difficult for Mobile Tornado to conduct the necessary trials with new customers, many of whom have been 'working from home' most of the year, and to secure the attention and budget from government departments.

As a result, non-recurring revenues were approximately £490,000 compared to £1.39m in 2019. However, the Harrogate-based firm said some of this shortfall has been offset by further efficiencies in operations, with total operating expenses falling to approximately £2.73m in the year from £3.16m in 2019.

Hide Ad
Hide Ad

It said the board is looking forward to 2021 with a good measure of optimism.

The group has started the year with some strong momentum in Colombia, where it has been operating for around 18 months.

Jeremy Fenn, chairman of Mobile Tornado, said: "Despite the unprecedented challenges that were presented during 2020, where it was very difficult to generate new business, I am pleased that the robustness of our business model and recurring revenue streams has allowed us to trade through the period with only modest losses.

"Our team has worked hard during the year to support our customers and partners around the world and we are seeing early signs that the business environment in our key markets is improving, and activity levels are beginning to pick up.

Hide Ad
Hide Ad

"There is still a huge amount of uncertainty in the marketplace, so it is difficult to make forecasts for the year.

"However, we have started the year brightly and the board is totally focused on moving the business into sustainable profit during the current financial year."

---

Support The Yorkshire Post and become a subscriber today.

Your subscription will help us to continue to bring quality news to the people of Yorkshire. In return, you'll see fewer ads on site, get free access to our app and receive exclusive members-only offers.

So, please - if you can - pay for our work. Just £5 per month is the starting point. If you think that which we are trying to achieve is worth more, you can pay us what you think we are worth. By doing so, you will be investing in something that is becoming increasingly rare. Independent journalism that cares less about right and left and more about right and wrong. Journalism you can trust.

Thank you

James Mitchinson

Comment Guidelines

National World encourages reader discussion on our stories. User feedback, insights and back-and-forth exchanges add a rich layer of context to reporting. Please review our Community Guidelines before commenting.