Touchstar PLC (LON:TST) said its full-year 2018 losses will be considerably better than market expectations and it expects to see a significant performance improvement in 2019 as it revealed that it is undertaking a review of the structure and operations of its businesses.
The AIM-listed mobile computing solutions company said the objective of the review is to see how its structure can be simplified "to ensure that focus is upon sectors where Touchstar has a strong market position, deep customer relationships, demonstrable growth potential and the prospect of achieving an adequate return on investment."
Significant improvement expected in 2019
The review is expected to be completed and communicated to shareholders on or before the announcement of the 2018 full year financial results in the middle of April.
In a trading update for the year ended 31 December 2018, Touchstar said its pre-tax losses after research and development tax credits will be considerably better than market expectations.
It added: "Although turnover will be somewhat lower than expectations, this will be more than compensated by achievement of higher margins, reflective of the move to more software-based sales and lower costs."
Touchstar, which offers data collection and mobile computing solutions for industrial and commercial applications, said it expects to see significant improvement in its performance in 2019 compared to 2018, despite the group operating in an environment of raised levels of political and economic uncertainty, which is likely to persist throughout 2019.
In early afternoon trading, Touchstar shares were unmoved at 34.5p.