Shares in Engage XR Holdings PLC were up on Monday after hitting its revised expectations despite a ‘challenging year’.

Engage is a virtual reality technology company based in the Republic of Ireland. Shares in Engage were up 7.7% at 2.80 pence each in London on Monday.

For the year ended December 31, the company said it was expecting around €3.7 million in revenue, in line with the company’s previous expectations. This is a 4.4% drop from the £3.9 million Engage delivered in 2022.

The company’s loss before interest, tax, depreciation and amortisation will be around €4.5 million, narrower than previously expected and down from £5.8 million a year prior.

Net cash at year-end was €7.9 million, slightly higher than previously announced.

Engage said that 2023 proved to be a ‘challenging year’, as several customers either did not renew contracts or renewed at lower levels than 2022.

Aside from this, the company said that it has made an encouraging start to 2024, including a seven-figure contract with an unnamed large Middle Eastern company in the education and development sector, announced last Tuesday.

Looking ahead, Engage believes 2024 will spell a return to revenue growth, as the company’s 2022 metaverse contract with Lenovo begins to pay off. The company also expects the launch of the new Apple headset to give the wider spatial computing software sector a boost.

Chief Executive Officer David Whelan said: ‘The group is in robust shape due to the actions we have taken to cut costs and focus on our sales pipeline. We are pleased to confirm that we hit our revised expectations for 2023, and the recent contract wins highlight our strong position, especially in the education, training and development verticals, which we expect to be the main source of future growth.’

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