(Alliance News) - VR Education Holdings PLC on Monday said it is on track to meet its full-year expectations after reporting a revenue rise and narrowed loss in the first half of 2019, despite "challenging" trading in the UK.
In the six months to June 30, the company posted a 66% revenue jump to EUR497,362 from EUR300,110 and a narrowed pretax loss to EUR1.2 million from EUR4.1 million.
The narrowed loss was helped by a non-repeat of a EUR2.6 million non-cash fair value loss on financial liabilities and EUR300,000 in extinguishment costs related to the acquisition of Immersive VR Education Ltd, which was completed in March 2018.
The virtual reality-focused education technology company reported an unchanged loss before interest, taxes, depreciation and amortisation of EUR900,000.
During the interim period, VR Education signed commercial clients for its Engage virtual reality platform, including a deal with South Korean digital content firm D'Carrick Co Ltd.
VR Education reported that it refocused its efforts to Asian and US markets as UK market spending on new technology was "significantly reduced".
The company explained: "The group will maintain a reduced UK business development department to ensure that it remains well placed for when demand increases in the UK market. This refocusing has resulted in a small shortfall in early revenue for the platform, however the group is confident that it can make up this shortfall with commercial deals during the second half of the year."
In May, the VR Education's Apollo 11 virtual reality experience was selected by Facebook Inc as a launch title on the Oculus Quest headset. The product recreates the events of the Apollo 11 space flight to the moon.
VR Education also secured an agreement with the US Space & Rocket Center, an aerospace and aviation museum, to showcase the Apollo 11 product.
Chief Executive David Whelan said: "While the group has had a challenging time in the UK, it has taken decisive steps to resolve this matter and push forward its goal of widespread adoption of virtual reality technologies for education and training. It is early days for this new medium, however VR Education is well-placed with a compelling software offering for those who wish to push the boundaries of learning and personal development."
Shares in the company were 4.0% lower at 6.00 pence each in London on Monday morning.
