(Sharecast News) - Starcom reported continuing annual losses amid an "unexpected delay" in the completion of a North African contract.For calendar 2018 the media network generated revenues of $5.98m, an increase of 9.9% over the prior year.With gross margin also improving to 40% from 38%, EBITDA losses are expected to narrow to approximately $40,000, narrowed from a loss of $193,000 the previous year.The revenue mix had improved across the year as higher-margin products provided a greater contribution, with the trend expected to continue through the current year.An "unexpected delay" with a $1.1m contract with the AIM-listed company's North African distributor means that the hardware related funds of this contract will be recognised as part of the 2019 full year, though the funds have still not been received."Whilst the company's cash position is currently constrained, the directors are confident that, with the banking facilities that are available to the company, it can meet its financial obligations even in the unlikely event of further delay in the receipt of the funds from the North African distributor," said a statement from Starcom.In the current year, revenue is expected to stem from software-as-a-service recurring revenues, the large base of some 200-300 recurring clients who place many relatively small orders for new units each year and have historically contributed approximately half of the company's revenues and larger deals maturing from the company's pipeline of new opportunities, that result from business development and sales efforts."The sales pipeline has increased significantly over the last year, thanks to the wider and more appealing product portfolio which Starcom can now offer. Although it is very difficult to predict how many of these opportunities will materialise, the directors believe this pipeline of larger potential deals, in addition to the recurring revenues and historic clients, should provide a good foundation for growth in 2019," the company's statement added.Starcom's shares were down 5.19% at 1.28p at 0943 GMT.
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