LONDON (Alliance News) - Rightster Group PLC Thursday raised GBP5 million in a share placing, and posted a slightly narrowed pretax loss for 2014 as investment offset a rise in revenue.
It raised GBP5 million through the placing of 27.86 million shares at 18 pence, and GBP383,599 in a loan note subscription. Shares in Rightster are untraded Thursday morning. It last closed at 17.50p.
The cloud-based video distribution services company reported a pretax loss of GBP18.8 million for 2014, narrowed slightly from a pretax loss of GBP19.4 million, as a rise in revenue to GBP8.7 million from GBP6.2 million was offset by higher administrative costs, as it invested in its software and people, and restructuring costs of GBP554,261.
The company said its Total Transaction Value, meaning the total value of the business being enabled by its software system and network of partners and not just the value Rightster itself invoices, rose to GBP16.9 million from GBP11.0 million in the year. It attributed this growth to a rise in brand deals generating additional advertising revenue, and an improved network of content owners and publishers.
Average monthly video reviews more than tripled in the second half of 2014 compared to the previous year, Rightster said. For the first quarter of 2015 average monthly video views are estimated at 1.6 billion.
Rightster expects its revenue to grow between 80% and 100% in 2015, and to be cash-flow breakeven in 2016. The company said that despite its "ongoing success" throughout the year, it does not believe this has been reflected in its share price movement, and hopes its new management team are able to communicate its strategy more clearly in 2015.
At the beginning of this year the company announced the appointment of new Chief Executive Officer Patrick Walker. Former Chief Executive Charlie Muirhead has stepped down as a director with effect from Wednesday.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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