IkeGPS, the Wellington-based developer of portable geolocation and laser measurement devices, has posted increased revenues and gross profit for its full year trading to March - but alongside an after-tax loss of $8.8million.
Total revenue for the year increased 129% to $9.2 million. IkeGPS' gross profit increased more than 115% year-on-year to $4.5 million and cash in hand stood at $5.3 million.
Chief executive Glenn Milnes said the $8.8million after-tax loss, compared with $5.1million last year, was booked as IkeGPS continued to invest in scaling its business, which is primarily focused on the North American market.
"However, now with a faster than previously projected path to cash break-even,'' he said in a statement.
This month, IkeGPS shares enjoyed a 33% spike to 88c after bringing forward its break-even expectations to the end of next year, and confirming it was considering a capital-raising and listing on the tech-heavy Nasdaq board of the New York Stock Exchange.
Following the full year announcement, Ike shares were down 7% to 78c.
IkeGPS's board said group operating cash outflows for the year ended March were $9.85million, compared with $5.91 a year ago. The year-end cash balance was $5.29million.
Auditors PwC tagged the accounts, saying, "If the group is unable to achieve forecast cash flows, it may not have sufficient cash reserves to meet obligations as they fall due.
"These conditions ... indicate the existence of a material uncertainty that may cast significant doubt about the group's ability to continue as a going concern,'' PwC said.
Mr Milnes said progress in the United States market had been "good'' in the electric utility and signage markets, which was where sales and marketing was focused.
Additionally, the development and launch of four new product platforms during the past year had positioned Ike to expand into new markets, such as insurance and residential construction, he said.
There were also new geographic markets, with the opportunity to replicate the US success, such as in the signage market, he said.
Mr Milnes reiterated IkeGPS's business plan was to be cash break-even by the fourth quarter of full year 2017, on the back of forecasted continuing sales growth across its portfolio of measurement products and increased margins on all new products.
Also contributing were recent operating
and cost efficiencies and expandable product-to-market infrastructure, which were now in place, underpinning multiple new products, he said.
"In markets with hundreds of thousands of potential customers, we're only just getting started.
"Our customer base continues to grow strongly and we remain focused on financial progress and taking further steps towards value-added growth,'' Mr Milnes said.
