Starcom sees annual losses narrowing after sales rise around 10%

Remote tracking device company Starcom said it expected to post narrower annual losses as its sales and margins rose.

Revenue for the year through December was seen growing 9.9% to $6.0m, with gross margin improving to 40%, up from 38%.

Ebitda was expected to be a loss of around $40k, compared to a loss of $193k on-year.

The company said its revenue mix had improved in 2018 as higher-margin products provided a greater contribution, with the trend expected to continue into 2019.

The company had warned earlier this month of a contract delay in Africa worth $1.1m.

'The company has now been notified that the distributor has received the first payment from the governmental end-customer and that it has already initiated the onwards transfer of the down payment to Starcom, so the receipt of these funds is expected shortly,' it said.

'Whilst the company's cash position is currently constrained, the directors are confident that, with the banking facilities that are available to the Company, it can meet its financial obligations even in the unlikely event of further delay in the receipt of the funds from the North African distributor.'

At 8:14am: (LON:STAR) Starcom PLC share price was 0p at 1.35p