LONDON (Alliance News) - Fitbug Holdings PLC Thursday said its losses widened in 2013, as it continued to invest in its product offering.
The provider of online personal health and well-being services posted pretax losses of GBP2.6 million for 2013 compared with a GBP1.5 million loss in 2012, as revenue dipped to GBP749,000 from GBP1.3 million. The company said its losses reflected significant investment in new product, infrastructure and distribution channels to "support strategic decision to focus on the consumer market." Fitbug believes there is substantial growth opportunities here, as wearable device adoption becomes mainstream.
At the period-end the firm said it had a cash balance of GBP139,000, down from GBP648,000 a year earlier.
Looking ahead, Fitbug said it has supportive financial backers and has positioned itself for growth. It said sales and confirmed orders in 2014 are 60% ahead compared with sales for the whole of 2013.
Fitbug said UK retailers including Tesco PLC and Dixons Retail PLC now stock its fitness devices, while ten distribution partners have been appointed since the turn of the year, providing "strong foundations for future growth".
"The company's strategy is supported by funding on attractive terms and we look forward to building revenues and market penetration in 2014," Fitbug said.
Fitbug expects its case against San Francisco-based Fitbit Inc for trademark infringement, unfair competition and unfair business practices is progressing and scheduled to go to trial in the US District Court for Northern California in early 2015.
Fitbug shares were quoted up 13% at 0.592 pence Thursday morning.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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