(Alliance News) - Mobile Tornado Group PLC said Friday it expects 2019 revenue to fall short of the year before due to a government contract delay.
For 2019, the communications software firm expects to report revenue of about GBP3.3 million, with an earnings before interest, tax, depreciation and amortization loss of about GBP300,000 - both of which below current market expectations.
In the second half alone, revenue is estimated at GBP1.8 million with Ebitda about "breakeven".
Mobile Tornado reported a pretax loss of GBP1.9 million for 2018, as revenue rose by 18% to GBP3.0 million.
"The shortfall in revenue has been driven largely by a delay to the full deployment of the company's solution with a government agency and a major public utility in Israel," Mobile Tornado explained.
"Although the commercial terms for these deals have been agreed, and significant development work completed for each customer during the period, full deployment of devices to their field teams has been delayed until the early part of 2020."
Mobile Tornado said the two customers represent "major strategic" wins for the company during 2019, and is confident the value of both deals will "grow significantly" in 2020 and beyond.
Chair Jeremy Fenn said: "Whilst the expected outcome for the financial year is below what we had hoped, I am pleased to report that the business achieved a breakeven Ebitda position in the second half of the year for the first time.
"The pipeline of pending orders and opportunities reflects the company's broader product offering and the growing global market for 'Push to Talk over Cellular' solutions. The board is confident that a good proportion of these leads will be converted into orders and will lead to a significant increase in revenues in due course. Furthermore, the investment made to enhance the company's solution suite should lead to a broader customer base, reduce future volatility in earnings and soften the impact of future timing issues."
Shares in Mobile Tornado were 5.3% lower in London on Friday morning at 3.60 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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Mobile Tornado (MBT)