Starcom narrows losses thanks to major revenue increase

AIM-listed wireless solutions provider Starcom saw an increase of over 50% in its first half revenues.

Starcom anticipates revenues for the six months ended 30 June to be roughly $3m as its gross margin is expected to tick down just one percentage point to 39% due to the "still dominant proportion" of its low margin Helios product in the sales mix.

The firm stated that since the half, Helios' presence in the mix has again increased further, resulting in higher gross margins.

Starcom said EBITDA for the first six months of the year was expected to show a loss of less than $100,000, a marked improvement over the loss of $283,000 posted in the first half of 2017.

The group attributed its increased revenues to its intensified efforts to acquire larger, more strategic and world-class clients who need their advanced and flexible technology to resolve the unique mission-critical problems they face in their respective businesses.

Michael Rosenberg, chairman of Starcom, said, "We are becoming the 'go to' company to provide specialised solutions in areas which, to date, have never had the technical know-how to deploy tracking and monitoring products, such as air cargo, livestock tracking and crop moisture level monitoring."

"Our flexibility and many years of experience in this market is allowing us to innovate to new levels, developing specific monitoring systems which our clients can deploy to create opportunities otherwise unheard of. We foresee this strategy continuing as our reputation grows in the industry."

As of 1110 BST, Starcom shares had dipped 0.16% to 3.12p.