Mobile Tornado Group PLC on Wednesday unveiled a subscription of new shares to raise around £500,000 before expenses, alongside providing forecasts for its 2022 annual results.
The Harrogate, England-based communications company said 25.0 million new shares would be available for subscription, around 6.6% of existing share capital, at a price of 2.00 pence each.
Shares in Mobile Tornado were down 9.5% to 1.90p each in London on Wednesday afternoon.
It also announced the capitalisation of £259,490 of indebtedness owed to InTechnology PLC into 13.0 million new shares at the issue price.
‘Since we announced the board changes on January 9, I’m pleased to report that the business has moved quickly to scale up its sales and business development operation and is now actively engaged with a number of potential new partners and customers,’ said Chair & Acting Chief Executive Officer Jeremy Fenn, referring to CEO Avi Tooba stepping down in early January.
Fenn continued: ‘Having combined our robust and reliable push to talk over cellular platform with the very latest in workforce management technology, our solution gives organisations everything they need to seamlessly communicate with and manage their team members using one application and one device, wherever they are in the world. This is a first for our global market and creates exciting growth opportunities for the company and our partners.
‘This small fundraise will allow us to accelerate our business development activities further, with the recruitment of additional sales professionals in key markets and the execution of a much more intensive outreach campaign. I look forward to further updating the market with our 2022 results during the week commencing 17 April.’
Ahead of its 2022 results, Mobile Tornado also on Wednesday forecasted total annual revenue to be around £2.3 million, falling 12% from actual £2.6 million a year earlier.
Gross profit is expected to drop 11% to £2.2 million from £2.5 million in 2021, while earnings before interest, tax, depreciation and amortisation loss are expected to widen to £290,000 from £30,000.
‘Our previous customer in Canada which ceased at the end of 2021 as previously reported, accounted for 20% of total revenue and 10% of recurring revenues in the prior year comparative figures,’ Mobile Tornado said in a statement.
‘It is pleasing to report therefore, that outside of this, we recorded a modest increase in both our total and recurring revenues across the remainder of our customer base.’
It added the company is exploring new routes to market ‘to ensure that its enhanced proposition is given the opportunity to deliver its full potential, and the planned acceleration of our business development activities will further support this’.
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