(Alliance News) - Pelatro PLC on Thursday said it swung to a loss in the first half of 2019 on administrative expenses but still expects to meet annual expectations.
Shares in Pelatro were down 28% at 55.00 pence in London in morning trade.
The marketing software firm's pretax loss for the six months ended June 30 was USD262,999 versus USD1.2 million profit the year before.
This was caused by a more than doubling of administrative expenses to USD1.9 million from USD781,000. A rise in revenue to USD2.7 million from USD2.4 million failed to offset this.
Pelatro Non-Executive Chair Richard Day said: "Revenue visibility currently still stands at USD6.3 million, as development over the traditionally quieter summer months being slightly slower than expected, resulting in a more pronounced H2 weighting this year. Despite management seeing some extended sales cycles, we have booked USD5.23 million of revenue to date (and USD2.52 million post period end); this is supported by an encouraging near term pipeline of USD9.2 million, a significant proportion of which the board is expecting to close before the year end. We are increasingly seeing opportunities to align our interests more with those of our customers through gain share arrangements rather than one off licenses, providing us with potentially fuller returns though the life of the contract and also greater visibility over the medium and longer term as well. The board therefore remains confident, based on current visibility and the encouraging pipeline described above, of delivering full year results in line with expectations.
"With our increasing spread of business we are working towards the next phase in our development, as we aim to develop more revenue sharing opportunities, as well as our licence offering. We are seeing plenty of opportunities and look forward to keeping investors informed on progress."
By Anna Farley; annafarley@alliancenews.com
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