Mobile Tornado Group, based in Harrogate, announced a £425k share placement aimed at funding key strategic goals.
- The company plans to use the capital to consolidate its research and development operations, enhancing overall efficiency.
- Expansion into the APAC region is a key focus, facilitated by the appointment of a Taiwan-based business development manager.
- Recent financial challenges include a 16% drop in revenue and a significant pre-tax loss reported for the first half of 2024.
- Despite these setbacks, leadership remains optimistic about new partnerships across key international markets.
Mobile Tornado Group has initiated a £425,000 share placement, marking a significant effort to bolster its strategic initiatives. The new shares are priced at 2 pence each, accounting for approximately 5.1% of the company, which has maintained its public listing since 2004. This financial move is aimed at consolidating the company’s research and development centers as well as boosting its business development initiatives.
A pivotal part of this strategy is the company’s expansion into the Asia-Pacific (APAC) market. To drive this initiative, Mobile Tornado has appointed a business development manager based in Taiwan. This appointment marks the first dedicated function for the company in the region, underlining its commitment to exploring potential market opportunities in APAC.
Financially, Mobile Tornado is navigating challenging waters. The company reported a 16% decrease in revenue, amounting to £1.06 million, for the six months ending June 30, 2024. Moreover, there was a recorded pre-tax loss of £600,000, comparing unfavorably to a £530,000 loss in the first half of 2023. Despite these figures, the leadership, notably Jeremy Fenn, chairman and acting CEO, remains confident in the company’s future trajectory.
Speaking on the company’s outlook, Jeremy Fenn highlighted progress in scaling up sales and business development operations. He noted, “We are in discussions with a number of new partners and end customers across our key markets in South America, Africa, and the Middle East.” He further emphasized the importance of the new APAC appointment as a significant step in their strategy.
The share placement and ensuing initiatives are expected to streamline research and development activities. This should not only optimize operational costs but also sustain high service levels for an expanding partner and customer base. The funding is a crucial element in maintaining service quality while reducing costs.
Mobile Tornado is strategically navigating financial and operational challenges, positioning itself for growth in key global markets.
