Mobile Tornado leaps on 'significant' trading and technology improvements

Mobile Tornado Group jumped on Wednesday after reporting a "significant improvement" in adjusted EBITDA loss thanks to a "good trading performance" in the second half of the year.

The provider of instant communication mobile applications to the enterprise market said it expected to report revenue and adjusted EBITDA loss in line with expectations for the year ended 31 December after second half trading was driven by a recent contract win with a major Mobile Network Operator in Israel and further enhancements made to the company's technical platform.

The AIM traded company said these platform improvements had resulted in increasing interest in the group's proposition, with the markets that the company is able to address set to increase substantially as the functionality and flexibility of the platform continues to be enhanced.

Jeremy Fenn, chairman of Mobile Tornado, said: "Given the momentum generated in the second half of 2018, the board is optimistic and excited about the opportunities that lie ahead in 2019. Our significant and continued investment in the technical platform has begun to pay off."

Specific enhancements to the platform include increased flexibility as all platforms now deliver the full product suite, comprising Push-to-Talk, Push-to-Alert, Push-to-Locate and Push-to-Message, allowing the company to move into markets previously dominated by digital mobile radio and land mobile radio technologies.

The platform's battery consumption requirements have also been materially reduced, while end-to-end encryption based on an improved AES256 encryption standard has been introduced as government contracts now require higher security.

"We are now engaging with multiple enterprises and government agencies who are attracted to the robustness, flexibility and functionality of our platform," said Fenn.

Mobile Tornado Group's shares were up 19.39% at 3.94p at 0921 GMT.