Mobile Tornado Group Plc (LON:MBT) was sent into a spin on Friday after contract delays led the communications firm to issue a profit warning.
In a trading update for the year ended 31 December, the push-to-talk communications group said the full deployment of its solution by a government agency and a major public utility in Israel had been delayed until early 2020, and as a result, it now expected revenues for the year of £3.3mln and an underlying (EBITDA) loss of £300,000, below market expectations.
Despite the setback, MBT said the two contracts represented “major strategic wins” and was confident that their commercial value will grow in 2020 and beyond.
The company’s chairman, Jeremy Fenn noted that the company had also achieved EBITDA breakeven for the first time in the second half of 2019 and that its pipeline of pending odes would lead to “a significant increase in revenues in due course”.
However, the profit warning sent Mobile Tornado shares tumbling 6.6% to 3.6p in early deals.