Sharechat Logo

Plexure Group narrows its 1H net loss on higher revenue, lower costs

Tuesday 14th November 2017

Text too small?

Plexure Group, the mobile voucher firm formerly called VMob, reported a narrower net loss in the first half as it lifted revenue and continued to streamline the business. The result was ahead of guidance. 

The Auckland-based company said its net loss was $195,000, or 0.26 cents per share, in the six months to Sept 30, versus a loss of $3.7 million, or 4 cents, in the prior year. Total revenue  lifted to $5.4 million from $3.6 million, while operating expenses fell to $5.6 million from $7.3 million.   

The result is slightly ahead of guidance it gave in September when it said its net loss after tax was expected to be $400,000. 

"Our two major cost categories are wages and salaries and our platform hosting costs, both of which have reduced," the company said in its half-year report.  Salaries have reduced due to downsizing, particularly in its overseas operations where costs have decreased by 59.2 percent or $600,000, it said. "We have also reduced our New Zealand operations and again will increase this over time but only where the customer demand justifies the expenditure," it said.

In June it said it would cut nine permanent jobs and six contract staff from its 55 strong workforce from August in a restructure as the digital ad firm's product development stage ends and it sees growing demand for professional services. 

Its wage and staff costs dropped to $1.9 million in the first half from $2.8 million a year earlier. 

During the first six months of the year, the company raised $1.9 million of new capital and is currently cashflow positive with $2.4 million in cash and cash equivalents. "At this stage we do not foresee the need to raise additional capital, however as opportunities present themselves we may revisit this," it said. 

The shares last traded at 11 cents and are down 50 percent over the past year. 

(BusinessDesk)



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report