(Alliance News) - mporium Group PLC on Friday said it has started restructuring as its loss widened in 2018 due to increased costs.
The marketing technology company reported pretax loss of GBP7.7 million for 2018 compared to GBP3.9 million loss a year earlier, as revenue fell to GBP911,263 from GBP2.0 million.
During the year mporium said it has failed to achieve sufficient revenue from the Agency division, making the business significantly unprofitable. Meanwhile, Fast Web Media business has generated significant losses since the beginning of 2018.
Administrative expenses increased to GBP8.6 million in 2018 from GBP6.8 million the year before, reflecting continuing investment in developing the Impact product.
These investments have delivered increased product capabilities, flexibility and scalability, mporium said. Impact was integrated into Google Search Ads 360, providing the capabilities to support display campaigns at scale.
"This has been a challenging year for the group, however the recently announced restructuring of the business is well underway and will be complete by the end of July," said Chief Executive Nelius De Groot.
"By restructuring the group, we are confident that Mporium will move forward with a leaner business model that capitalises on the opportunities within our target markets," added De Groot.
In June, the company announced a major restructuring of the business to refocus on the performance-led MporiumX division. The reorganisation is already underway and headcount reductions will be complete by mid-July and will halve the salary costs of mporium.
In addition, a strategic review of Fast Web Media business is also underway, mporium said, and the company expect to decide on the future direction of the business by the end of July.
mporium shares were trading 0.5% higher on Friday morning at 0.94 pence each in London.
