Malta-based ICT solutions provider Loqus Group recorded a loss before tax of €594,165 during the six months ended 31st December 2023, a 203 per cent decrease from the €575,370 pre-tax profit registered in the same period in 2022.

In its interim financial report, released on Monday, the group stated that the loss is primarily attributable to upfront expenditure brought about by the onboarding of new clients.

In fact, Loqus Group’s revenue went up by eight per cent when compared to the same period in 2022, sitting at €5.6 million in the final six months of 2023. The successful onboarding of new clients on its openFleet product line brought about an influx of one-time implementation fees. Additionally, it also saw a significant portion of its longstanding contracts being renewed.

Loqus Group, formerly Datatrak Group, is an ICT solutions group with the mission of providing customers with products and services aimed at improving their cost effectiveness. It has five main business functions: infomobility, geomatics, ICT solutions, public sector business, and management services. One of its product lines, openFleet, is a platform that enables clients to plan and optimise their end-to-end journey, tracking and delivering products and services to improve customer experience.

Over the year, Loqus Group closed a number of new contracts, solidifying its rapport with existing clients, and also reaching more potential customers in the process. This increased reach mainly came due to its expansion beyond the UK, as the company is now present in 13 countries, primarily in the EU.

This growth has also brought increases in personnel expenses, going up by 39.7 per cent to €3.4 million. Professional and consultancy fees also increased to €91,927, together with travelling and accommodation, which went up to €90,163.

These results prompted earnings before interest, taxes, depreciation and amortisation (EBITDA) to drop by 87 per cent from the same period in 2022, amounting to €170,473.

Loqus Group stated that it is not producing sufficient cash flow to cover the gap between the EBITDA and the pre-tax loss, and is thus utilising cash generated in previous years to cover its most important growth-related costs.

Total assets as at the end of 2023 stood at €13.3 million, slightly lower than the €13.6 million that was registered at 30th June 2023.

Looking ahead, Loqus Group’s Board of Directors anticipates the trend of increased costs to continue until it fully transitions into the phase of generating recurrent revenues from the newly acquired accounts. “As we progress through this implementation phase, we are confident that our efforts will yield fruitful results. The recurrent revenues generated from these accounts will not only offset the initial implementation costs, but also contribute significantly to our overall revenue growth,” the Directors added.

Last October, when Loqus Group published its Annual Report for the financial year ended June 2023, CEO Joe Fenech Conti had stated that “continual revenue enhancement” of its fleet management area is the “bedrock” of the group’s strategy.