Salford based mobile firm 2ergo suffers record pre-tax losses
Salford based mobile firm 2ergo has reported increased pre-tax losses, principally arising in consequence of a £12.2m impairment charge.
For the year to 31 August 2012, the company registered a pre-tax loss of £16.1m overall, £3.9m of that constituting underlying losses, itself a deterioration on the 2011 figure of £3.7m.
Overall losses for the year were even worse, rising from £2.5m in 2011 to £20.6m.
Explaining the one off charges to hit its books 2ergo said £10.3m had been levied in regards to the impairment of Secure Connect, a secure communications protocol.
In a statement 2ergo said: "Due to the early stage of development of mobile wallets globally, it is difficult to forecast accurately the payback period for the Secure Connect technology.
“The remainder of the charge related to technologies for non-core business which were written down 'to reflect the group's forward operating model'.
Outlining the way ahead 2ergo affirmed it had completed a comprehensive restructure of its business, together with management changes and a shift in focus from mobile solutions.
2ergo is best known for providing the contactless mobile technology ‘podifi’ which delivers coupons and vouchers to companies including Aviva, Ladbrokes and Pizza Express.