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LONDON (Alliance News) - Vehicle tracking system firm Starcom PLC said Wednesday its interim loss halved as revenue jumped amid a significant shift towards its new, higher-margin business.
For the six months ended June, pretax loss slimmed to USD477,000 from USD925,000 the year prior. This was after revenue rose 63% to USD3.1 million from USD1.9 million the year before.
"These improved results demonstrate that the company is now beginning to reap the rewards of its years of investment in its superior telematics and tracking technology," Starcom Chief Executive Officer Avi Hartmann said.
"We are seeing more significant clients now adopting our systems and many more are in discussion with us on future projects," Hartmann added. "We are very focused on developing these new relationships which we expect to drive our growth in the next few years."
Recurring revenue from software-as-service business grew 15% to USD890,000 from USD775,000 the year prior. Its low-margin Helios business now accounted for just 34% of revenue, down from 58% six months earlier.
"2018's first half revenues have already exceeded half of 2017's full year revenues which were weighted, as in previous years, towards the second half of the year," Starcom Chairman Michael Rosenberg said.
"With this good start," Rosenberg added, "and as we engage with an unprecedented number of higher quality new client and revenue opportunities, we expect that revenues for 2018 should significantly exceed those for 2017 and that full year 2018 will show a positive EBITDA before share option provisions. More importantly, we have established a stronger foundation of improved client and product mix to enable growth to continue into 2019."
For the six month period, Starcom's loss before interest, taxes, depreciation and amortisation before share options reduced to USD40,000 from USD283,000 the year prior.
Shares in Starcom were 6.6% lower at 2.92 pence on Wednesday.
