Fitbug shares are back: Here's what's going on

 
Lynsey Barber
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Fitbug suspended share trading due to market reaction (Source: Getty)

Fitbug shares have resumed trading after being halted on Wednesday, as the Aim-listed tech company released a trading update.

Shares closed down more than 40 per cent to 0.400p on Thursday, after rocketing more than 400 per cent in late afternoon trading on Wednesday which had prompted the company to suspend trading.

Read more: Fitbug shares have been halted

The initial rise was on the back of announcing a deal which will put its fitness devices in the hands of 14,000 workers at an Asia-based financial services firm. It has now revealed the deal is worth £60,000 in service revenue this year.

The firm updated the market on its progress, forecasting revenue for the year to the end of December is expected to be down on the previous year.

The firm also gave its outlook on pre-tax losses which are expected to be half last year's £6.3m loss.

Its turnaround from a consumer facing company selling wearables in stores and directly to customers to focusing on corporate wellbeing means 90 per cent of revenue for the year is expected to come from this new area.

It has also made inroads into shoring up its balance sheet after fundraising and a debt to equity conversion last year, while substantial cost savings have also been made in the second half of the year, something which will continue into 2017.

In its 2017 outlook, the company said:

"The board believes that the group's prospects for 2017 are positive with a growing pipeline of corporate opportunities particularly in the UK and Europe, with further opportunities being explored in the Far East and the US.

"The directors believe that current progress and sales opportunities confirm that the company has embarked on the right strategy to move away from retail to focus on the b2b corporate wellness sector as previously outlined."

Fitbug shares are up around 150 per cent on last week's close, but are still off highs experienced in 2014.

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