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(Correcting pretax profit.)
Alphawave IP Group PLC on Monday said it swung to a loss, despite revenue tripling in the first half of 2023.
The London-based company designing high-speed connectivity solutions reported that revenue more than tripled to $187.2 million in the first half of 2023, from $57.1 million the year prior. It noted that the revenue figure included the contribution from its acquisition of OpenFive.
The firm said it swung to a pretax loss of $11.2 million, from a profit of $22.2 million a year ago. It said net debt was $100 million, compared to net cash of $452 million in the first half of 2022.
The company noted that through its acquisition of OpenFive, it gained a multiple contracts with gross margins below its targets.
Alphawave maintained its guidance for 2023 and in the medium term, with an increase in profit expected in the second half of the year. The firm previously said it expects revenue between $340 million and $360 million, as well as adjusted earnings before interest, tax, depreciation and amortisation of $87 million, up from $53.8 million in 2022.
The firm did not declare a dividend, unchanged from a year ago.
Chief Executive Tony Pialis said: ‘We are successfully executing on our strategy, with the business offering a growing range of advanced connectivity solutions that enable the next generation of AI and cloud infrastructure.
‘In H1 2023 we delivered a good set of results, scaling our business and investing organically to support our pipeline and future revenue growth. Our leading connectivity technology and strong execution give us confidence in the prospects for our business.’
Alphawave IP shares fell 7.1% to 136.60 pence each on Monday morning in London.
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