Location data firm Proxama cuts losses after significant restructure
PUBLISHED: 10:53 18 September 2017 | UPDATED: 16:27 18 September 2017
A tech firm has said it is "fit for growth" after completing a restructure as it posted reduced losses in its latest results.
Norwich-based Proxama, which provides location data services, announced a fall in its turnover to £1m in the six months to June 30, down from £1.21m in 2016.
The firm said the drop was expected due to the restructuring process, which had seen it incur one-off administrative costs of £360,000.
Losses before tax improved to £2.42m, down from £2.94m for the same period last year.
As part of the restructure the group became debt free after a successful £3.1m equity placing.
Proxama, which also has offices in New York and London, said it had reduced full-time employees to 33 as of September, nearly half the 60-strong team from the start of the year, which the company said meant it was “well positioned for the future”.
The changes to the digital payments division have generated savings off £1.2m and the arm was bolstered by securing a major client in South Africa.
This year has also seen the launch of a new location sciences business which will provide location data to partners and has increased the company’s audience by four million.
John Kennedy, chief executive of Proxama, said: “In 2016 we the laid the important building blocks for the location sciences business, securing audience through our app partnerships and expanding our technology to include precise geo-location data.
“In H1 2017 we’ve been getting the business ‘fit for growth’ through the rebuilding of the board and management team, becoming completely debt free, significantly restructuring the business whilst materially reducing costs and raising the working capital to invest in Location Sciences.
“We are already seeing the benefit of this investment through exponential growth of our consumer audience and data scale.
“We continue to focus on monetisation of this data as well as our transition to higher margin products such as online to offline verification.
“If you believe there is value in the collection, ownership and analysis of billions of data points, along with the ability to analyse real world moments of millions of consumers and apply this value into advertisers and brands then there are exciting times ahead for Location Sciences and Proxama.”