Losses widen for Big Sofa but 'material revenue growth expected'
Big Sofa Technologies Group
2.55p
15:49 28/04/20
Video content management firm Big Sofa Technologies Group said on Friday that over the first six months of its trading year it had witnessed "excellent" strategic progress despite reporting widening losses.
FTSE AIM All-Share
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16:50 25/04/24
Big Sofa said its pre-tax loss had grown to £2.2m over the six months leading to 30 June, more than double the figure of £814,000 it had posted a year earlier, on revenue that was relatively flat, up just 1% to £503,000 over the half.
Basic loss per share did improve significantly as it rose from 848.20p at the halfway point of 2016 to 3.74p in 2017.
Management remained confident that sales growth would accelerate throughout the remainder of the year.
"The outlook for Big Sofa is positive with material revenue growth expected to be generated in the second half of the current financial year," chief executive officer Simon Lidington said.
"Revenues in the second half are expected to significantly outweigh those in the first half. The company's strong new business pipeline, robust technology platform and clear strategic focus leave us well placed to capitalise on a significant market opportunity."
The AIM-listed company said that as a result of its increased investment in expanding its client base, which included the establishment of a US site, and additional costs associated with its listing on the London Stock Exchange, profit performance was hit with £2.5m in admin expenses as opposed to the £1.1m it shelled out 12 months prior.
Cash and equivalents rose from just £6,000 to £397,000.
As of 1140 BST, shares had slipped 12.82% to 17.00p.