Mobile Tornado Group PLC Trading update and notice of results (5364Q)
February 20 2019 - 1:00AM
UK Regulatory
TIDMMBT
RNS Number : 5364Q
Mobile Tornado Group PLC
20 February 2019
20 February 2019
Mobile Tornado Group plc
("Mobile Tornado", the "Company" or the "Group")
Trading update and notice of results
Mobile Tornado (AIM: MBT), the leading provider of instant
communication mobile applications to the enterprise market, today
issues a trading update ahead of the announcement of results for
the year ended 31 December 2018. The audited results are expected
to be announced in the week commencing 15 April 2019.
Trading in the second half of the year, and therefore for the
full year, was in line with the Board's expectations. A good
trading performance during the second half has resulted in a
significant improvement in adjusted EBITDA* loss during this
period, when compared to the first six months. As a result, subject
to audit, the Board expects to report revenue and adjusted EBITDA
loss for the year ended 31 December 2018 and net debt as at 31
December 2018 in line with market expectations.
Jeremy Fenn, Chairman of Mobile Tornado, said: "Given the
momentum generated in the second half of 2018, the Board is
optimistic and excited about the opportunities that lie ahead in
2019. Our significant and continued investment in the technical
platform has begun to pay off. We have the only carrier grade
end-to-end instant communication solution that works over any IP
Network, transitioning seamlessly across 2G, 3G, 4G and Wi-Fi.
Along with the additional enhancements described below, we are now
engaging with multiple enterprises and Government agencies who are
attracted to the robustness, flexibility and functionality of our
platform."
The Company's improved second half trading performance has been
driven by:
-- progress in relation to a recent contract win with a major
Mobile Network Operator ("MNO") in Israel, which has generated
encouraging early sales of a bundled solution under the new Capex
model (perpetual license and device); and;
-- further enhancements made to the technical platform, both in
terms of product offering as described in further detail below and
improvements made to the overall operating efficiency of the
platform, positively impacting total operating expenses.
The Directors consider that there is increasing interest in the
Group's proposition, driven to a large extent by the continued
improvements that are being made to the platform. As the
functionality and flexibility of the platform continues to be
enhanced, the markets that the Company is able to address increase
substantially.
Some of the improvements to the product offering that have been
recently deployed include the following:
-- The dual redundant server platform can now be deployed for
between $20k and $200k, enabling customers to meet the requirements
for between 1,000 and 200,000 users. All platforms deliver the full
product suite, comprising Push-to-Talk, Push-to-Alert,
Push-to-Locate and Push-to-Message. The increased flexibility of
the solution is allowing the Group to move into markets previously
dominated by Digital Mobile Radio and Land Mobile Radio
technologies, which are more expensive and require dedicated
devices.
-- The Dispatch platform has been further developed and forms a
key component of the Company's end-to-end solution. It is now a
major driver for new customers and markets. The platform can now
handle simultaneously up to 18 channels, which meets the public
safety requirements for most government agencies.
-- Government contracts also require higher security platforms
and in the latest release of the software the Company has
introduced end-to-end encryption based on an improved AES256
encryption standard, whereby the audio is encrypted with a
different encryption key on every PoC transmission.
-- The technical team has also improved the efficiency of the
platform such that the battery consumption has been materially
reduced, allowing the device to be used for days between charges,
rather than hours. One of the biggest challenges with all mobile
devices has always been the battery life, and this is particularly
relevant and important in the public safety markets that the Group
is now engaged with.
-- In March 2019, the Company will be launching its recording
server that will enable a customer to record all private and group
calls across the platform. This data can be stored for future
investigations that are extremely important for public safety
customers.
The Directors consider that the above developments significantly
strengthen the Group's proposition across all of its core
markets.
*excluding exchange differences and non-recurring items
Enquiries:
Mobile Tornado Group plc www.mobiletornado.com
Jeremy Fenn, Chairman +44 (0)7734 475 888
Allenby Capital Limited (Nominated
Adviser & Broker)
James Reeve / Nicholas Chambers +44 (0)20 3328 5656
Walbrook PR Ltd mobiletornado@walbrookpr.com
Paul Cornelius / Sam Allen +44 (0)20 7933 8780
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END
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