(Alliance News) - DeepMatter Group PLC on Friday reported a widened loss for 2019 but highlighted "significant" opportunities for its technologies amid the Covid-19 pandemic
Shares in the software company were trading 7.5% lower at 2.22 pence each on Friday afternoon in London.
For 2019, DeepMatter posted maiden revenue of GBP1.2 million, with around 75% of the amount coming from recurring contracts. Pretax loss was GBP3.4 million, widened from GBP2.0 million in 2018. The widened loss was attributed to higher costs as administrative expenses tripled to GBP1.9 million from GBP600,000.
Turning to current trading, the company said the shift in working practices arising from the Covid-19 outbreak has highlighted the need to share scientific data remotely, underlining the value proposition of DeepMatter's DigitalGlassware platform.
DigitalGlassware allows chemistry experiments to be recorded, coded and entered into a shared data cloud.
"While the uncertainty caused by Covid-19 situation will likely have an impact on the length of contract discussions in the short-term, it is evident the opportunity for the group's technology is significant and long-term. The board is therefore confident in the prospects for DeepMatter, its ability to weather the current market conditions and deliver on the increasing interest and relevance of its offering," said Non-Executive Chair James Ede-Golightly.
DeepMatter added that its pipeline of revenue remains "strong" and it has implemented cash-conservation measures which will ensure it can focus on its 2020 objective to further develop DigitalGlassware.
As at the end of December, the company had cash of GBP2.6 million.
By Ife Taiwo; ifetaiwo@alliancenews.com
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