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Interim Results

7digital wins contract with grandPad

19 September 2016 07:40

7digital Group reports high first half revenues and confirms a contract with grandPad, a provider of technology solutions specifically designed for senior citizens.

Half year revenues rose to £5.2m (H1 2015: £5.1m).

Adjusted LBITDA was £2.8m (H1 2015: £1.3m), after £0.7m provision for bad debt at customer Guvera, costs relating to the move to a cloud based IT systems and reflecting the timing of R&D tax credit.

The statutory loss for the period was £3.2m (H1 2015.statutory loss of £6.6m).

Chief executive Simon Cole said: "We have continued to improve the quality of our revenue base, remain confident of our commitment to achieve profitability by the year-end and expect the Group to be profitable for the full year 2017.

"It is disappointing that, despite this accelerating progress, the provision for revenues owed to us by Guvera and slower revenue growth than expected in the first half overall will result in a larger loss this year than we had anticipated. We continue to expect to be broadly EBITDA breakeven in the final quarter of the year.

"Our Snowite acquisition was completed in this period and has brought greater than the anticipated cost savings, which will reflect in a £1m reduction in anticipated overhead for next year. It has also brought new revenues and clients; next week we will launch a major new streamed music service in France for Cdiscount, adding to existing retail clients Fnac and E.Leclerc.

"The sales pipeline is strong for the second half of the year with a number of significant contracts in the final stages of negotiation."

7digital also announced it has signed a contract with grandPad.

7digital will power a music service which comes pre-loaded onto grandPad's simple and secure tablet device designed for older seniors.

grandPad recently announced partnerships with hardware, software and services company Acer and major Swiss telecommunications provider Swisscom to facilitate grandPad's growth.

The deal will contribute to 7digital's revenues for 2016.

Story provided by StockMarketWire.com

Related Company: 7DIG

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