The revised product strategy at mporium Group PLC (LON:MPM) is driving improved performance, the digital marketing services provider told investors.
The company, which announced a number of senior management changes along with this morning’s half-year results, said advanced discussions with additional leading marketing agencies regarding commercial arrangements are ongoing and the overall pipeline for its flagship product, IMPACT, is promising.
The expansion of IMPACT into several Continental European markets is ahead of schedule, the company revealed, with agencies such as Essence and the7stars adopting its use, building on the initial deployments in the final quarter of 2016.
The company said it has made significant progress against the key performance indicators (KPIs) that were outlined in the 2016 annual report. The increase in advertising Spend Under Management has been particularly significant, according to mporium.
Meanwhile, the group's Fast Web Media business performed well, benefitting from a more targeted focus with improving revenues, clients and margins, mporium said.
Revenue in the first half of the year rose 21% to £1.05mln from £870,473 the year before, driven by an increase in Technology & Other Recurring Revenue.
The company is still very much in the “land grab” phase of its development, and like a lot of early stage technology companies, it currently makes a loss; having said that, the loss before tax narrowed to £2.42mln from £2.94mln the year before, despite a substantial increase in head count.
The group had cash reserves at the end of the half year of £1,641,643, having raised £3mln through a share placing back in March.
Nelius De Groot, formerly the group’s chief operating officer and now the new chief executive officer (CEO), said: "We have made strong progress in the first half: signing new commercial agreements and taking significant steps towards further contracts, while improving our IMPACT product and adding key resource that will support future growth. I am delighted that we have managed to increase our revenues while simultaneously reducing our costs and thereby narrowing our loss.”
Confident progress achieved will continue
De Groot said the group looks to the future with confidence.
“The global market for IMPACT is vast and we have proved that the technology delivers significant performance improvements. We are confident that the progress and momentum generated to date, will continue throughout 2017," he added.
De Groot’s move into the CEO role followed the departure of non-executive chairman Nigel Walder and the shift in duties for Barry Moat from CEO to executive chairman.
In other board room news, finance director Richard Gordon is set to leave at the end of September.
Shares in mporium were unchanged in mid-morning trade at 10.875p.
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