Digital media and social video broadcaster Brave Bison Group PLC (LON:BBSN) substantially reduced underlying losses in 2016 as cost cutting measures kicked in.
The group made a gross profit of £7.7mln in 2016, up from £6.1mln the year before on net revenue that rose 22% to £14.6mln from £17.7mln.
The company did warn, however, that revenues this year are likely to be substantially lower, as the group suffered two material contract losses at the end of 2016 and is also pondering discontinuing certain low margin business activities.
The group is now largely focussed on higher margin products in line with its stated strategy of moving up the value chain. The overall impact of the strategy shift and the contract losses is that it is expected to take a little longer than originally anticipated to achieve profitability.
Adjusted underlying losses (EBITDA), which exclude exceptional items, restructuring costs and share-based payments, narrowed to £1.8mln in 2016 from £8.7mln.
The group, which ended the year with £7.0mln in cash, said it has continued its cost rationalisation programme. The reduction in employee numbers and property costs delivered annualised savings of £2.6mln in the final quarter.
Shares were off 0.25p at 1.625p in lunchtime trading.