(Alliance News) - Mobile Tornado Group PLC on Wednesday said the contract with its Canadian customer will not be renewed, sending its shares tumbling.
Mobile Tornado is a Harrogate, Yorkshire-based provider of mobile communications applications. Its shares dropped 19% to 1.94 pence on Wednesday morning in London following the announcement.
The company said it remains in discussion with the customer, whom it didn't name, about the possibility of extending or amending the contract. Otherwise, it will end on December 31 and so won't hurt 2021 results.
The Canadian customer accounts for about GBP500,000 of Mobile Tornado's revenue in 2021, Mobile Tornado said. At the half-year stage, it reported total revenue of GBP1.3 million, suggesting that the customer represents about 20% of that. Total revenue in 2020 was GBP2.5 million.
Mobile Tornado said it will provide a trading update in early January.
By Heather Rydings; heatherrydings@alliancenews.com
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Mobile Tornado (MBT)