Plexure Group, the mobile voucher firm formerly called VMob, reported a narrower net loss in the first half as it lifted revenue and continued to streamline the business. The result was ahead of guidance.
The Auckland-based company said its net loss was $195,000, or 0.26 cents per share, in the six months to September 30, versus a loss of $3.7 million, or 4 cents, in the prior year. Total revenue lifted to $5.4m from $3.6m, while operating expenses fell to $5.6m from $7.3m.
The result is slightly ahead of guidance it gave in September when it said its net loss after tax was expected to be $400,000.
"Our two major cost categories are wages and salaries and our platform hosting costs, both of which have reduced," the company said in its half-year report. Salaries have reduced due to downsizing, particularly in its overseas operations where costs have decreased by 59.2 per cent or $600,000, it said. "We have also reduced our New Zealand operations and again will increase this over time but only where the customer demand justifies the expenditure," it said.
In June it said it would cut nine permanent jobs and six contract staff from its 55 strong workforce from August in a restructure as the digital ad firm's product development stage ends and it sees growing demand for professional services.
Its wage and staff costs dropped to $1.9m in the first half from $2.8m a year earlier.
During the first six months of the year, the company raised $1.9m of new capital and is currently cashflow positive with $2.4m in cash and cash equivalents. "At this stage we do not foresee the need to raise additional capital, however as opportunities present themselves we may revisit this," it said.
The shares last traded at 11 cents and are down 50 per cent over the past year.