Growth is being driven by an increase in the sales of IMPACT, Mporium’s platform that focuses on “micro-moments” and enables advertising agencies to direct their spend to the right audience at the right time.
Revenue in the six months to the end of June rose to £1.2mln from £1.1mln the year before. During the period, technology and other recurring revenue rose 14% to £1.1mln from £900,000. The operating loss widened by 4% to £2.5mln from £2.4mln, largely as a result of depreciation and the amortisation of ongoing capitalised development costs.
Management said investment in the IMPACT platform has progressed to the stage that future development costs are expected to fall in line with the amortisation schedule.
The loss before tax held steady at £2.52mln (2017: £2.42mln).
The group had cash reserves at the end of the half year of £814,636, down from £1,641,643 the year before.
"We have made considerable progress against our strategy in the first half. This was evidenced by the group's continued success in signing new commercial deals with large and respected media networks, and by expanding the scope of existing agreements on the back of delivering strong performance against expectations. It is due to these relationships that several major global brands are now using our technology to drive performance on their most important advertising campaigns,” said Nelius De Groot, the chief executive of Mporium.
"We look to the future with confidence,” he added.
“IMPACT is operating on campaigns across more than 140 countries and there is significant global appetite for the technology across several verticals. We have made significant steps in our plans to gain increased commercial traction for the technology, as we continue to roll-out successful campaigns where we have signed commercial agreements, and demonstrate the value that IMPACT is able to deliver. We are confident that the progress and momentum generated to date will continue throughout 2018," De Groot concluded.
Broker finnCap, Mporium's nominated advisor, said, "Increasing commercial traction with several top-tier global media agencies, and ongoing investments into product development, provide the group with significant opportunities to expand across a broader customer base, and demonstrate the value of IMPACT in the digital adverting sector".
The broker is reviewing its forecasts and target price but looks forward to continued development from the group for the period ahead.
Shares in Mporium were unchanged.
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