7digital's suspension lifted after reporting 'increasing momentum' from 2017

Digital music and radio services firm 7digital saw the suspension of its shares lifted on Thursday after the firm released its delayed results for the year ended 31 December.

The delayed results, which chairman Don Cruickshank said the company was "not proud of" and part of a situation "unconnected with the underlying health of our business", showed 50% increase in revenues to £16.8m after the firm signed a "transformative" deal with MediaMarktSaturn (MMS) to build their digital music services in 15 countries.

The deal also saw MMS, one of Europe’s largest electronics and entertainment retailers, become 7digital’s largest shareholder.

Simon Cole, chief executive of 7digital, said: "The group continued to expand its customer base which already included nearly 50 companies across an increasing range of geographies, strengthened its relationships with the music industry, with all major labels now customers and improved the quality of its business through the visibility of its revenues."

The AIM traded company reported that its "strategically important" monthly recurring revenue increased by 71% to £8.4m for the period, while one-off revenues increased by 82% to £1.7m.

After achieving a 33% reduction in adjusted operating loss to £3.8m, 7digital registered a 63% reduction in adjusted EBITDA loss to £1.6m.

Consequently, the company posted a total loss for the year of £4.6m, a loss reduction of 15% over the year before.

The firm had cash and cash equivalents of £7m at 31 December, up from £0.8m the year before.

"We have a strong pipeline of business which is enjoying increasing momentum and a board which remains committed to growing profitability again in 2018. The enlargement of the group has significantly strengthened our market position and will bring materially enhanced revenue against a fixed cost base and a clear path to profitability," said Cole.

7digital’s shares were down 4.76% at 4.00p at 0928 BST.