(Alliance News) - Pelatro PLC on Wednesday said profit more than halved in 2019 after substantially increased staff costs and amortisation.
Shares in Pelatro were down 12% at 46.56 pence in London in afternoon trading.
The marketing software firm recorded a USD1.0 million pretax profit for 2018, less than half 2018's profit figure of USD2.5 million.
While revenue was 9.8% higher at USD6.7 million versus USD6.1 million in 2018, the company's staff costs nearly trebled to USD1.5 million from USD582,000 and amortisation of intangible non-current assets amounted to USD1.7 million compared to only USD843,000 in the previous year.
Non-Executive Chair Richard Day said: "Significant progress has been made by Pelatro this year in developing our product suite, expanding our customer base and broadening our business offering. Our software is now handling and processing the data for over 800 million subscribers from our 19 telco customers in 18 countries around the world, reflecting a step change in our capacity which is a clear validation by the industry of the quality of our mViva system.
"Although it is still early in our year, revenue visibility already stands at USD4.1 million, with an encouraging pipeline of around USD18 million; despite some uncertainties introduced by the current coronavirus pandemic...we are maintaining our momentum in moving towards a revenue sharing business model alongside our licence offering, which gives us every confidence in the coming year and our future."
By Anna Farley; annafarley@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.