(Alliance News) - Revenue and profit fell at Pelatro PLC in 2020 amid a challenging year, it said on Monday.
Revenue in 2020 dropped 40% to USD4.0 million from USD6.7 million in 2019, due to a switch to a recurring revenue-based model and also due to the pandemic causing contract delays.
The London-based marketing software specialist saw recurring revenue fall by 4% to USD2.9 million from USD3.0 million, although it increased as a proportion of revenue to 71% from 44%.
Pelatro suffered a pretax loss of USD2.2 million for 2020, swung from pretax earnings of USD800,000 the year before.
Earnings before interest, tax, depreciation and amortisation in 2020 fell to USD400,000 million from USD2.89 million in 2019, while the firm made an adjusted operating loss before exceptional items of USD1.3 million in 2020, down from an operating profit of USD1.6 million last year.
Despite this the AIM-listed company remained optimistic saying it has a "substantial order book and good visibility over revenues for the coming year".
Pelatro also pointed to a USD16 million pipeline of work and an enhanced sales presence in Latin America, Africa and the Middle East.
Pelatro's cash position improved during the year, with gross cash of USD1.8 million as at December 31, compared to USD1.1 million a year before.
Chair Richard Day said Pelatro's mViva platform had been "successfully stress-tested to the extreme" during the pandemic when it was implemented across a network of over 400 million subscribers without any losses.
"This is a significant validation of the scalability of our mViva product", he added.
“We ended 2020 in a much stronger position, with a substantial order book and good visibility over revenues for the coming year."
No dividend was declared for the year, as for the prior year.
Pelatro shares were up 8.0% to 40.50 pence in London on Monday afternoon.
By Will Paige; willpaige@alliancenews.com
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