Synety tanks as annual loss widens, but company confident in future opportunities
Shares in Synety Group tanked on Wednesday, as the cloud-based software provider reported its annual loss had widened.
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The London-listed group posted a full-year loss before tax of £5.55m, a 47.6% increase year-on-year driven by a sharp rise in administrative expenses, which rose 41.4% to £4.2m.
The increase in operating loss offset a sharp hike in revenue, which rose 198% to £1.63m driving gross profits up 217% to £1.18m.
However, despite the widening loss, the group executive chairman, Simon Cleaver, said that the company remained positive about its prospects for 2015, adding that the group’s investments were beginning to show positive results.
"While disappointed that progress has been slower than originally anticipated, the board is encouraged by the key performance indicators and what we believe to be the significant opportunity in our marketplace,” he continued.
In a statement on Wednesday, the group added it had raised £2.82m through the issue of 3,129,084 new ordinary shares, each priced at 90p, and up to a further 834,028 new ordinary shares to be issued through an open offer at 90p each to raise £0.75m.
The group, which said N+1 Singer is acting as its nominated adviser and broker for the placing, said it aims to use the proceedings to increase sales, pre-sales and marketing personnel in the UK as well as to fund further product development.
Synety shares were down 34.18% to 90.50p at 08:47 on Wednesday.