21st Century continues transformation process as FY loss narrows

"We made real strides last year with major framework renewals, organisational restructuring and innovative new sales," said chief executive Russ Singleton.

"However, the financial performance in H2 was poor as rail and passenger orders anticipated earlier in the year did not materialise," he observed.

"We raised finance in order to support working capital requirements going forward, significantly reduced our cost base and are starting to see our strategy working."

Singleton continued that 21st Century had created a strong platform for growth. Revenue for the year was £11.6m, from £12.2m. After-tax loss was £2.3m, from a loss of £4.8m.

Looking ahead, Singleton said 21st Century continued to transform from a business that provided standalone, on-vehicle CCTV and IT sub-systems integration towards one that provided fully connected systems on and off vehicles in towns and cities and in the transport network's bus and rail stations.

"We are diversifying our customer base, accessing new markets and delivering innovative solutions based on our own technologies, software and applications.

"Our first in-house developed product, marketed under the Journeo brand name, is entering fleet service this year, combining diagnostic and communications management software into a cloud-based web service."

Singleton said the company now had the platform and capabilities needed to build sales into our main customer segments and extend into related or adjacent markets over the coming years.

"Management expect that this will lead the Group to a return to profitability. Performance in the first quarter of 2017 was in line with management expectations."

At 12:04 BST shares in AIM-quoted 21st Century were flat at 3.25p each.