LONDON (ShareCast) - Z Group, the marketing technology services firm, slipped into losses last year but says current trading is ahead of budget.
Pre-tax losses for the year came to £1.1m compared to a profit of £398,000 last year on turnover down to £2.6m from £5m. Cash balances reduced to £2.2m compared to £4.1m previously.
The group said turnover from ONSPEED Mobile, which represents 88% of the total turnover for the year, fell to £2.3m from £4.4m as a result of the growth of competitive, fast broadband.
Development expenditure for Z’s file sharing platform OnShare added another £1.3m to the group’s costs.
“There is no doubt that the challenges associated with the development of OnShare have been greater than originally anticipated but this product is now out and we are confident it will be considerably better for the delays encountered,” said the group.
“Our priority this year is to commercialise the OnShare product and to become cash positive,” it added.