LONDON (Alliance News) - Ultima Networks PLC Tuesday posted a widened pretax loss for 2014 in what it called a "difficult year", as it opted to restructure its business, and revenue fell.
Ultima operates three divisions, IT Services, Green Technology Products and Green Power.
Ultima Networks posted a pretax loss of GBP2.5 million for 2014, widened from a pretax loss of GBP184,000 in 2013, as revenue fell to GBP1.4 million from GBP2.3 million, and administrative expenses rose to GBP2.5 million from GBP1.1 million, mostly as a result of restructuring costs.
Ultima attributes the reduction in revenue to the restructuring of its activities during the year. The company said it had become evident that development projects outside the UK were becoming increasingly challenging, and taking up a disproportionate degree of management and financial resources.
As a result it substantially wrote down the value of its investment in Solar Farms in Italy, and suspended development and deployment of its solar power solutions, instead concentrating on the distribution of its electrical bicycle range.
In its Green Technology division, sales fell to GBP399,000 from GBP1.4 million, due to falling sales of its electric bicycles, particularly in Europe. It is now focusing on the UK, which it expects to deliver more stable growth and result in an improved performance.
In IT Services sales fell 7%, as the legal market remained difficult.
Shares in Ultima Networks are untraded Tuesday afternoon. It last traded at 0.260 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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