Mobile business and marketing solutions company 2ergo saw revenues grow by 7% in the first half, as it was able to offset falling sales at its wholesale business.

Group revenue increased from £10.21m to £10.96m during the six months to 28 February, as revenues from its core target market of direct and business partner sales grew by 23% to £7.16m, from £5.84m. However, sales in the wholesale reseller channel fell 13% from £4.37m to £3.80m.

"The group continued to actively manage the decline in its low margin wholesale operations, having taken the decision to de-prioritise these low margin activities in 2008," the statement said.

Nevertheless, the group stressed its high revenue visibility; as income from recurring transactional and monthly fees now accounts for 86% of total revenue.

2ergo was also able to scale back its pre-tax losses to £0.07m, from £0.89m previously. Loss per share fell from 2.25p to 0.26p.

"We have seen further strong progress in the first half, secured notable new business in all our key geographies, built a solid pipeline and delivered on key strategic goals in terms of product development," said joint chief executive Neale Graham.

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BC

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