REG - Mobile Tornado Group - 2024 Final Results
12/06/2025 07:00
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RNS Number : 4776M Mobile Tornado Group PLC 12 June 2025
12 June 2025
Mobile Tornado Group plc
("Mobile Tornado", the "Company" or the "Group")
2024 Final results
Mobile Tornado Group plc, a leading provider of resource management mobile
solutions to the enterprise market, announces its audited results for the year
ended 31 December 2024.
Financial Highlights
2024 2023
£'000 £'000
Recurring revenue 1,745 1,852
Non-recurring revenue* 288 414
Total revenue 2,033 2,266
Gross profit 1,979 2,080
Administrative expenses** (2,568) (2,328)
Adjusted EBITDA*** (589) (248)
Group operating loss (855) (293)
Loss before tax (1,667) (1,072)
· Total revenue decreased by 10% to £2.03m (2023: £2.27m)
o Recurring revenues decreased by 6% to £1.75m (2023: £1.85m)
o Non-recurring revenues* decreased by 30% to £0.29m (2023: £0.41m)
· Gross profit decreased by 5% to £1.98m (2023: £2.08m)
· Administrative expenses before depreciation, amortisation,
exceptional items and exchange differences increased by 10% to £2.57m (2023:
£2.33m)
· Adjusted EBITDA*** loss of £0.59m (2023: loss of £0.25m)
· Group operating loss for the year increased to £0.86m (2023:
£0.29m)
· Loss before tax of £1.67m (2023: loss of £1.07m)
· Basic loss per share of 0.37p (2023: loss of 0.24p)
· Cash at bank at 31 December 2024 of £0.11m (31 December 2023:
£0.19m) with net debt of £11.36m (2023: £10.67m)
* Non-recurring revenues comprise installation fees, hardware, professional
services and capex license fees
** Administrative expenses excludes depreciation, amortisation, exceptional
items and exchange differences
***Earnings before interest, tax, depreciation, amortisation, exceptional
items and excluding exchange rate differences
Operating highlights
· Deal closed with Zain Iraq, part of Zain Group, a leading mobile
network operator ("MNO") in the Middle East and Africa through our in-country
partner
· Reseller agreement signed with Prairie Mobile Communications, a
well-established technology provider in Canada with a national presence
· Appointment of Syndico Distribution, a disruptive communications
technology provider, as our exclusive UK distributor
· New 10-year exclusive agreement signed with our largest customer,
Servitron, in Mexico which should strengthen our license growth prospects
· Launch of our live video streaming service and software radio
bridge, delivering key differentiators that enable seamless video
communication and integration with legacy radio systems.
· £425k equity fundraise concluded in November 2024 to further
support the scale up of sales, marketing and business development activities
Jeremy Fenn, Chairman of Mobile Tornado, said: "The strategic framework we
have put in place is now delivering clear commercial results. Our expanding
global partner network, enhanced product suite and referenceable customer
base, including flagship names like Zain, Syndico and Servitron, have put us
in a strong position for 2025 and beyond.
"The Board's focus remains on growing recurring revenues and converting our
expanded pipeline into meaningful financial returns. We entered the new
financial year with renewed sales momentum and a significantly reduced cost
base. We are cautiously optimistic that the business will be able to deliver
an improved set of financial results for 2025."
Enquiries:
Mobile Tornado Group plc www.mobiletornado.com (http://www.mobiletornado.com)
Jeremy Fenn, Chairman +44 (0)7734 475 888
Luke Wilkinson, CEO
Allenby Capital Limited (Nominated Adviser & Broker) +44 (0)20 3328 5656
James Reeve/Piers Shimwell (Corporate Finance)
David Johnson (Sales and Corporate Broking)
Financial results and key performance indicators
Total revenue for the year ended 31 December 2024 decreased by 10% to £2.03m
(2023: £2.27m). Recurring revenues decreased by 6% to £1.75m (2023:
£1.85m). This was largely the result of a renegotiated exclusive contract
with our partner in South Africa in order that they can provide a more
competitively priced proposition with a view to generating higher sales
volumes in due course.
Non-recurring revenues, comprising installation fees, hardware, professional
services and capex license fees decreased to £0.29m (2023: £0.41m). As a
result, gross profit decreased by 5% to £1.98m (2023: £2.08m).
Administrative expenses before depreciation, amortisation, exceptional items
and exchange differences in the year increased by 10% to £2.57m (2023:
£2.33m), reflecting our greater investment in business development
activities.
Due to the annual retranslation of certain financial liabilities on the
balance sheet, the Group reported a translation gain of £0.07m (2023: gain of
£0.08m) arising from the appreciation of Sterling relative to both the Euro
and the US Dollar as at 31 December 2024 versus the previous year end. The
Group recorded a net income tax credit of £0.10m (2023: credit of £0.08m).
The loss after tax for the year increased to £1.56m (2023: loss of £0.99m)
equating to a basic loss per share of 0.37p (2023: 0.24p).
The net cash used in operations increased to £0.37m (2023: £0.13m). At 31
December 2024, the Group had £0.11m cash at bank (2023: £0.19m) and net debt
of £11.36m (31 December 2023: £10.67m).
The balance sheet continues to reflect the cumulative loss position of the
Group, and those net liabilities that have resulted from this. We continue to
hold levels of debt in the Group which have funded these historical losses.
Results and dividends
The Directors do not recommend the payment of a dividend in respect of the
year ended 31 December 2024 (year ended 31 December 2023: nil). The Company
currently intends to reinvest future earnings to finance the growth of the
business over the near term.
Review of operations
2024 marked a year of continued strategic execution and operational progress
for Mobile Tornado. While headline revenue declined, reflecting the
renegotiation of our contract with our longstanding South African partner, we
made substantial progress expanding our global footprint, strengthening our
partner ecosystem, and enhancing the capabilities of our technical platform.
The revised commercial terms in South Africa were necessary to provide a more
competitive proposition in a challenging economic environment. Early signs of
success have emerged, with one of the country's largest security firms signing
on for several thousand licences.
At the same time, our business development strategy, launched in 2023, has
matured into a robust engine for global expansion. Our broadened channel
strategy, key account wins, and product enhancements have placed the Group in
a significantly stronger position to capitalise on a growing market for
critical communications technology.
In September 2024, we were proud to announce a landmark partnership with Zain
Iraq, one of the Middle East's leading telecommunications providers and part
of the Zain Group. The launch, which took place at the ITEX Iraq event,
featured live demonstrations of our solution, which now powers instant, secure
group communications and workforce management services across sectors such as
logistics, healthcare, construction and energy. The service leverages Zain's
4.5G+ high-speed network and marks a pivotal step in our expansion across the
region.
Our North American footprint has also expanded. In Canada, we signed a
reseller agreement with Prairie Mobile Communications, a well-established
connected technology provider with a national presence. With 26 locations
across the country and deep penetration into key verticals including
agriculture, mining and public safety, Prairie Mobile is already migrating an
existing user base to our platform and has expressed strong expectations for a
long-term, high-growth partnership.
In December 2024 we appointed Syndico Distribution as our exclusive UK
distributor. Syndico has a proven track record of bringing disruptive
communications technology to market and is well placed to drive the transition
from traditional narrowband radio systems to our LTE-powered, scalable
solutions. The deal includes a minimum commitment and early signs indicate a
quality pipeline.
In May 2025, we entered into a new 10-year exclusive agreement with our
largest customer, Servitron, in Mexico. This deal should significantly
strengthen our license growth prospects and represents a major milestone in
solidifying one of our most important strategic relationships.
We also took the decision to consolidate our R&D operations into the UK,
winding down our historic development base in Israel. This move has delivered
significant cost savings and operational efficiencies, while also increasing
focus, productivity, and alignment between our technical and commercial
functions. Our UK-based development centre is now fully operational and
continues to drive forward innovation with agility and pace.
Technology and Innovation
We continue to invest heavily in product development. During 2024, we launched
our live video streaming service and software radio bridge, delivering key
differentiators that enable seamless video communication and integration with
legacy radio systems. We also extended compatibility across a wider range of
devices, further increasing our addressable market.
Our R&D efforts remain focused on building new functionality that meets
real market needs and enhances our competitive positioning.
Looking ahead, we are actively developing a roadmap to deliver a Mission
Critical Push-to-Talk (MCPTT) platform. As part of this initiative, we are
currently reviewing potential technical partners to identify the most suitable
collaborators to accelerate delivery and ensure compliance with 3GPP
standards. MCPTT is the globally recognised standard for public safety and
emergency communication over LTE networks, offering significant enhancements
over traditional push-to-talk technology. These include advanced call
prioritisation, guaranteed quality of service, enhanced security, and seamless
interoperability with other mission-critical applications such as data and
video. The integration of MCPTT capabilities into our platform will allow us
to address new verticals, particularly in the public safety and government
sectors, where compliance, reliability and resilience are paramount. This
development will further strengthen our value proposition in both developed
and emerging markets, positioning the Company as a leading provider of
next-generation critical communication solutions.
People and Board
The appointments of Luke Wilkinson as Chief Operating Officer and Marcus
Emptage as Finance Director have significantly strengthened the executive
team. Both joined the Board in June 2024 and have made immediate, positive
impacts across their respective areas.
I am pleased to confirm that, effective today, Luke Wilkinson has been
appointed Chief Executive Officer. This follows the outstanding progress he
has led since joining the business, particularly in spearheading our business
development strategy. Under Luke's leadership, the Group has widened its
global partner network, deepened engagement with key customers, and delivered
a significantly expanded commercial pipeline. His strategic vision and energy
have been instrumental in positioning Mobile Tornado for future growth.
We also said farewell to Peter Wilkinson, who stepped down as Non-Executive
Director in September 2024 after many years of invaluable support. Peter's
contribution to the business, both operationally and financially, has been
immense, and we continue to benefit from his backing through Holf Investments
Ltd, which provides the Group's revolving credit facility.
Funding
In November 2024, we concluded a subscription for 21.25m new ordinary shares
of 2 pence each representing approximately 5.1 per cent. of the existing
issued ordinary share capital of the Company at a price of 2 pence per share
to raise £425,000.
This equity funding was directed towards enhancing our business development
activities, including the participation in major industry trade shows and the
recruitment of additional sales professionals to manage the increasing
portfolio of partners.
On 30 August 2024, our revolving loan facility agreement with Intechnology plc
was assigned by them to Holf Investments Ltd. At the same time, the term of
the agreement was extended by 12 months to 26 September 2025. All other terms
of the agreement remain unchanged and as previously announced. The balance
drawn down at 31 December 2024 and at today's date is £50,000. Holf
investments Ltd has offered to extend the term of the revolving loan facility
by a further 12 months to 26 September 2026 should it be requested by the
Company.
Our principal shareholder Holf Investments Ltd, has also agreed not to call on
existing loans, borrowings totaling £11,460,000 for a minimum period of 12
months following the signing of these accounts unless cashflows of the Group
should allow repayments to be made.
We remain confident that the above support and our available cash resources
together with our long-established recurring revenue customer base and
anticipated future contracts will provide us with adequate financial resources
for the foreseeable future.
Principal risks and uncertainties
The management of the business and the nature of the Group's strategy are
subject to a number of risks. The Directors have set out below the principal
risks facing the business. The Directors are of the opinion that a thorough
risk management process is adopted, which involves the formal review of all
the risks identified below. Where possible, processes are in place to monitor
and mitigate such risks.
Product obsolescence
Due to the nature of the market in which the Group operates, products are
subject to technological advances and as a result, obsolescence. The Directors
are committed to the Group's current research and development strategy and are
confident that the Group can react effectively to developments within the
market.
Indirect route to market
As described above, one of the Group's primary channels to market are MNOs
reselling our services to their enterprise customers. Whilst MNOs are ideally
positioned to forward sell our services and are likely to possess material
resources for doing so, there remains an inherent uncertainty arising from the
Group's inability to exert full control over the sales and marketing
strategies of these customers.
Going concern
The Financial Statements are prepared on a going concern basis.
When determining the adoption of this approach, the Directors have considered
a wide range of information relating to present and future conditions,
including the current state of the Balance Sheet, the support offered by our
principal shareholder Holf Investments Ltd, who have agreed not to call on
existing loans, borrowings and revolving loan facility totaling
£11,460,000. Further consideration has been given to future projections,
cash flow forecasts, access to funding, ability to successfully secure
additional investment, available mitigating actions and the medium-term
strategy of the business.
The Group is dependent on its ability to meet its cash flow forecasts.
Within those forecasts the Group has included a number of significant payments
and receipts based on its best estimate but, as with all forecasts, there does
exist some uncertainty as to the timing and size of those payments and
receipts. In particular, the forecasts assume the ongoing deferral and phased
payment of some of the Group's creditors, including a contingent consideration
balance of £2,718,000, (as disclosed in note 12 to the financial statements),
and the continuation at the current level of recurring revenues. In the event
that some or all of these receipts are delayed, deferred or reduced, or
payments not deferred, management has considered the actions that it would
need to take to conserve cash. These actions would include cost savings
(principally payroll based) and/or seeking additional funding from its
shareholders, for which there is currently no shareholder commitment
requested. These conditions, together with the other matters explained in note
1 to the financial statements, indicate the existence of a material
uncertainty which may cast significant doubt about the Group's ability to
continue as a going concern. The financial statements do not include the
adjustments that would result if the Group was unable to continue as a going
concern.
The Directors, whilst noting the existence of a material uncertainty and
having considered the possible management actions as noted above, are of the
view that the Group is a going concern and will be able to meet its debts as
and when they fall due for a period of at least 12 months from the date of
signing these accounts.
Section 172 statement - our stakeholders
The Board recognises its duty to consider the needs and concerns of the
Group's key stakeholders during its discussions and decision-making. The Board
has had regard to the importance of fostering relationships with its
stakeholders as set out below, and also detailed in the Corporate Governance
section of this Annual Report.
Colleagues
We have an experienced, and dedicated workforce which we recognise as the key
asset of our business. It is vital to the success of the Group to continue to
create the right environment to encourage and create opportunities for
individuals and teams to realise their full potential. The Board and
management team pay close attention to employee feedback and seek to respond
constructively to any suggestions or concerns raised.
Regular colleague briefing sessions are held with the Executive Chairman to
enable colleagues to ask questions and raise issues and for colleagues to be
provided with updates on the business. Key performance information such as
trading updates and financial results are always promptly communicated to
colleagues. The Group has in place a share option scheme to enable colleagues
to become personally invested as shareholders of the Group.
Customers
Regular communication takes place with the Group's partners and customers to
discuss operational updates, product roadmap developments and gain key
customer feedback. This enables increased engagement with customers at a
strategic level and a greater understanding of both customer pain points and
future requirements from strategic to end-user level.
Strategy
The Group continues to invest in an R&D strategy, to ensure that the
technical platform continues to meet the needs of the market. The Board are
focused on delivering an increasing level of recurring revenues through its
developing partner network.
Suppliers
The Board is committed to building trusted partnerships with the Group's
suppliers. Through these partnerships, we deliver value and quality to our
other stakeholders.
Shareholders
The Executive Chairman holds meetings with existing and prospective investors
during the year, particularly following the release of the Group's interim and
full year results and feedback from those meetings is shared with the Board.
The AGM is a key opportunity for engagement between the Board and
shareholders, particularly private shareholders. The Group's annual report and
accounts is made available to all shareholders both online and in hard copy
where requested. All presentations and announcements and other key shareholder
information is available on the investor section of the Group's website.
Outlook
The strategic framework we have put in place is now delivering clear
commercial results. Our expanding global partner network, enhanced product
suite and referenceable customer base, including flagship names like Zain,
Syndico and Servitron, have put us in a strong position for 2025 and beyond.
The Board's focus remains on growing recurring revenues and converting our
expanded pipeline into meaningful financial returns. We entered the new
financial year with renewed sales momentum and a significantly reduced cost
base. We are cautiously optimistic that the business will be able to deliver
an improved set of financial results for 2025.
I would like to thank our employees, partners and shareholders for their
ongoing commitment. We look forward to building on these foundations in the
year ahead.
Approved by the Board of Directors and signed on behalf of the Board
Jeremy Fenn
Chairman
12 June 2025
Consolidated income statement
For the year ended 31 December 2024
2024 2023
£'000 £'000
Continuing operations
Revenue 2,033 2,266
Cost of sales (54) (186)
Gross profit 1,979 2,080
Operating expenses
Administrative expenses (2,568) (2,328)
Exchange differences 67 75
Reorganisation costs (100) -
Depreciation and amortisation expense (233) (120)
Total operating expenses (2,834) (2,373)
Group operating loss before exchange differences,
depreciation and amortisation expense (589) (248)
Group operating loss (855) (293)
Finance costs (812) (779)
Loss before tax (1,667) (1,072)
Income tax credit 104 80
Loss for the year (1,563) (992)
Loss per share (pence)
Basic and diluted (0.37) (0.24)
Consolidated statement of comprehensive income
For the year ended 31 December 2024
2024 2023
£'000 £'000
Loss for the year (1,563) (992)
Other comprehensive gain/(loss)
Item that will subsequently be reclassified
to profit or loss:
Exchange differences on translation
of foreign operations (10) 28
Total comprehensive loss for the year (1,573) (964)
Attributable to:
Equity holders of the parent (1,573) (964)
Consolidated statement of financial
position
As at 31 December 2024
2024 2023
£'000 £'000
Assets
Non-current assets
Property, plant and equipment - 135
Right-of-use assets - 250
- 385
Current assets
Trade and other receivables 825 1,345
Inventories 8 13
Cash and cash equivalents 113 186
946 1,544
Liabilities
Current liabilities
Trade and other payables (5,500) (5,376)
Borrowings (11,470) (10,840)
Lease liabilities - (110)
Net current liabilities (16,024) (14,782)
Non-current liabilities
Trade and other payables (456) (769)
Borrowings (7) (18)
Lease liabilities - (155)
(463) (942)
Net liabilities (16,487) (15,339)
Equity attributable to the owners of the parent
Share capital 8,779 8,354
Share premium 15,797 15,797
Reverse acquisition reserve (7,620) (7,620)
Merger reserve 10,938 10,938
Foreign currency translation reserve (2,252) (2,242)
Accumulated losses (42,129) (40,566)
Total equity (16,487) (15,339)
Consolidated statement of changes in
equity
For the year ended 31 December 2024
Share Share Reverse acquisition Merger Foreign currency translation Accumulated Total
capital premium reserve reserve reserve Losses equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2023 7,595 15,797 (7,620) 10,938 (2,270) (39,566) (15,126)
Loss for the year - - - - - (992) (992)
Exchange differences on translation
of foreign operations - - - - 28 - 28
Total comprehensive loss for the year - - - - 28 (992) (964)
Issue of share capital 759 - - - - (10) 748
Equity settled share-based payments - - - - - 2 2
Balance at 31 December 2023 8,354 15,797 (7,620) 10,938 (2,242) (40,566) (15,339)
Share Share Reverse acquisition Merger Foreign currency translation Accumulated Total
capital premium reserve reserve reserve Losses equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2024 8,354 15,797 (7,620) 10,938 (2,242) (40,566) (15,339)
Loss for the year - - - - - (1,563) (1,563)
Exchange differences on translation
of foreign operations - - - - (10) - (10)
Total comprehensive loss for the year - - - - (10) (1,563) (1,573)
Issue of share capital 425 - - - - - 425
Equity settled share-based payments - - - - - - -
Balance at 31 December 2024 8,779 15,797 (7,620) 10,938 (2,252) (42,129) (16,487)
Consolidated statement of cash
flows
For the year ended 31 December 2024
2024 2023
£'000 £'000
Operating activities
Cash used in operations (372) (129)
Tax received 92 60
Interest paid - -
Net cash (used in)/from operating activities (280) (69)
Investing activities
Purchase of property, plant & equipment - (7)
Net cash used in investing activities - (7)
Financing activities
Issue of ordinary share capital 425 500
Share issue costs - (10)
Repayment of borrowings (110) (260)
IFRS 16 leases (110) (110)
Net cash generated from financing activities 205 120
Effects of exchange rates on cash
and cash equivalents 2 (3)
Net (decrease)/ increase in cash and
cash equivalents in the year (73) 41
Cash and cash equivalents at beginning of year 186 145
Cash and cash equivalents at end of year 113 186
Notes to the financial statements
1 Financial information
The financial information set out in this final results announcement does not
constitute statutory accounts within the meaning of s434 of the Companies Act
2006. Statutory accounts for the year ended 31 December 2024 will be made
available to shareholders for approval at the next Annual General Meeting. The
statutory accounts contain an unqualified audit report, which did not include
a statement under s498(2) or s498(3) of the Companies Act 2006 and will be
delivered to the Registrar of Companies.
The statutory accounts for the year ended 31 December 2023 which have been
delivered to the Registrar of Companies, contained an unqualified audit report
and did not include a statement under s498(2) or s498(3) of the Companies Act
2006.
2 Segmental analysis
The Group presents its results in accordance with internal management
reporting information to the chief operating decision maker (Board of
Directors). At 31 December 2024 the Board continued to monitor operating
results by category of revenue within a single operating segment, the
provision of instant communication solutions. Under IFRS 8 the Group has only
one operating segment.
Revenue by category
2024 2023
£'000 £'000
License fees 1,786 1,943
Hardware & software 107 273
Professional services 107 -
Support & Maintenance 33 50
Total 2,033 2,266
2024 2023
£'000 £'000
Recurring 1,745 1,852
Non-recurring 288 414
Total 2,033 2,266
Revenue is reported by geographical location of customers. Non-current assets
are reported by geographical location of assets.
2024 2024 2023 2023
Non-current Non-current
Revenue assets Revenue assets
£'000 £'000 £'000 £'000
UK 51 - 27 -
Europe 201 - 165 -
North America 84 - 58 -
South America - Mexico 1,202 - 1,283 -
Middle East 346 - 483 385
Africa 140 - 242 -
Asia/Pacific 9 - 8 -
Total 2,033 - 2,266 385
Of the total revenue of the Group, two customers (2023: three) each
represented revenue greater than 10% of this total - these being 37% or
£746,000 (2023: 31% or £702,000) and 22% or £457,000 (2023: 26% or
£580,000 respectively).
3 Loss per share
Basic loss per share is calculated by dividing the loss attributable to
ordinary shareholders of £1,563,000 (2023: £992,000) by the weighted average
number of ordinary shares in issue during the year of 422,977,467 (2023:
412,101,271).
2024 2023
Basic and diluted Basic and diluted
Loss Loss Loss Loss
per share per share
£'000 pence £'000 pence
Loss attributable to
ordinary shareholders (1,563) (0.37) (992) (0.24)
The loss attributable to ordinary shareholders and the weighted average number
of ordinary shares for the purpose of calculating the diluted earnings per
ordinary share are identical to those used for basic earnings per ordinary
share. This is because the exercise of share options are anti-dilutive under
the terms of IAS 33.
4 Annual General Meeting
The Annual General Meeting of the Company will be announced separately in due
course. The audited results for the year ended 31 December 2024 will be made
available to shareholders shortly and will be available on the Company's
website at www.mobiletornado.com (http://www.mobiletornado.com) at the same
time.
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