AppScatter Group PLC (LON:APPS) has alerted shareholders to a partnership deal announced by Airpush, the company it is in the process of acquiring.
The app management and data intelligence platform operator said Airpush, a technology company specialising in enabling companies to make money from their apps, has announced a partnership with Andromo, the mobile app building platform for Android.
READ AppScatter and Airpush planning to combine in reverse takeover
It is estimated that 3% of apps on the Google Play Store were built using the Andromo platform. appScatter and Airpush intend to include the Andromo service when they merge their platforms.
"To be able to include such an exciting and popular service into our new single platform is extremely satisfying. Alongside app management, market intelligence, monetisation solution; app development is a critical area that we want to offer our customer base,” said Philip Marcella, appScatter’s chief executive officer.
"Subject to the completion of the acquisition, we can already look forward to providing a truly unique end-to-end service to the market," he added.
In a separate announcement, the group released its results for 2018, which showed the damaging effects of the delayed roll-out of its platform.
Revenue declined to £951,345 from £1.94mln in 2017, due, in part, to changes in the way that revenue is recognised.
The loss before tax widened to £11.0mln from £6.3mln the year before, reflecting the decline in turnover, the increase in the cost of sales and an increase in administrative expenditure; such increases are commonplace in technology companies in the early “land grab” stage of their development.
Operating cash flow improved by £2mln to an outflow of £6.2mln, down from £8.2mln in 2017. Cash at the end of the period was £83,000 (2017: £3.8 million). During the year the group completed the acquisitions of Priori Data for £13.5mln and Abilott security services for £825,000.
The integration of Priori and appScatter is now complete and the expected benefits from the Priori acquisition are beginning to show through, the company said.
The group’s business is set to be transformed by the reverse takeover deal with Airpush (if it is approved by shareholders).
Until the formal launch of the appScatter platform, which is now scheduled after the completion of the proposed Airpush acquisition, revenues from subscribers’ use of the platform are likely to continue to be significantly lower than management's previous expectations.
At Priori, sales remain in line with management expectations while the changes brought about at Abilott following its acquisition make it too early for a reliable assessment, appScatter said.
“With our investment into the appScatter platform and the completion of the two strategic acquisitions, we have built the foundations for our goal to build a combined single platform for app publishers and developers,” Marcella said.
“As a result of last years' progress we were able to announce the proposed acquisition of Airpush Inc., if approved by shareholders the new enlarged group will have 1.8mln registered users and a single platform to build, distribute, secure and monetise apps whilst having the market intelligence to truly promote apps to the correct audience," he added.