Immotion headed for break-even in Q1

Virtual reality entertainment group Immotion expects to reach monthly break-even in the first quarter thanks to a "significant" boost in new installation activity predicted for 2020.

Based on its visible pipeline, Immotion said on Friday that it was expecting a significant acceleration in new installation activity as it heads into the new year.

"We believe that our existing estate, combined with expected headset installations, will result in an installed base that should deliver monthly underlying EBITDA breakeven by or around the end of Q1 2020," the company said.

The AIM-listed group also said that its full-year underlying EBITDA loss was estimated to be in line with expectations, while revenues were projected to come in between £3.6m and £3.8m.

Chief executive Martin Higginson said: "Q1 2020 should be extremely busy and exciting for the group.

"We move towards 2020 with growing confidence in our strategy, which is designed to allow us to scale rapidly."

At 1245 GMT, the shares were down 3.1% at 6.44p.