LONDON (Alliance News) - Proxama PLC Wednesday posted a widened loss for 2013 as revenue declined and it posted an exceptional charge relating to its listing on AIM August 2013 via the reverse takeover of Longships PLC.
Proxama posted a pretax loss of GBP5.4 million, widened from GBP1.8 million in the previous year, as revenue declined to GBP813,380 from GBP1.4 million. Although sales costs dropped, administrative expenses rose, and the company posted an exceptional cost of GBP2.1 million relating to its reverse takeover of Longships.
The mobile financial services company said the reduction in revenue was as a result of delays in customer decisions as new products were launched in the fourth quarter of the year by competing suppliers, such as Google Inc's contact-less payment products for Android smart-phones, and Apple Inc's low-energy Bluetooth product iBeacon.
Despite seeing big names enter its market, Proxama expressed optimism that the public adoption of mobile commerce including loyalty cards and payments will pick up in 2014. It believes that this will lead to further revenue growth in 2015 as its customers move from piloting products to taking them up commercially.
Proxama said that it will continue to build on its partnerships and platform infrastructure in 2014 with the aim of placing its TapPoint payment software as a platform for connecting bricks-and-mortar stores with mobile commerce.
"We are confident that the leading global retailers, banks and wallet providers will use Proxama's platform and capabilities in 2014 to pilot innovative services with the aim of rolling them out for mass market scale in 2015 and beyond," said Chief Executive Neil Garner in a statement.
Shares in Proxama were trading down 7.6% at 4.92 pence Wednesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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