Touchstar ends 2023 in line with expectations

Mobile data computing and managed service provider Touchstar said in an update Monday that it expects its performance for 2023 to be largely in line with market expectations in terms of revenue and profit before tax.

The AIM-traded firm said its unaudited revenue reflected an approximate 7% increase compared to 2022, while the unaudited profit before tax demonstrated a substantial rise of 60% over the same period.

It said it anticipated a significant decrease in the tax charge compared to prior forecasts.

Coupled with the positive impact of share buybacks conducted during 2023, the company expected earnings per share to surpass market expectations.

Notably, Touchstar repurchased 275,000 ordinary shares during the financial year.

As of 31 December, the company's net cash position stood at £3m, slightly lower than the £3.4m recorded in 2022.

Looking ahead to 2024, Touchstar said it was optimistic about its prospects, with expectations for further revenue growth, the maintenance of healthy margins, positive cash generation, and progress in profitability.

“Touchstar entered 2024 in good shape. In the market sectors in which we operate activity continues, which gives reassurance for the outlook in 2024,” said chairman Ian Martin.

“The medium-term prospects for the company have improved.

“The team is now focussed on making such opportunity a reality, enabling a long term continuation of the positive trends in financial performance, building upon the solid platform we have developed and making Touchstar a better business.”

At 1023 GMT, shares in Touchstar were up 2.13% at 96p.

Reporting by Josh White for Sharecast.com.