FitBug Holdings PLC today announced that revenues for 2015 fell to to £1.259 million, with pre-tax loss doubling from its previous year to £6.303 million.
The digital ‘health and well-being’ company unveiled a turnaround strategy to its ‘business-to-business’ (B2B) market after a failed buyer-to-consumer (B2C) strategy caused ‘unsustainable’ losses. The company was also hit by high legal costs, totalling £594,000.
However, trading in the first quarter of 2016 was encouraging, with sales in the Corporate Wellness sector increasing‘significantly’ over like-for-like sales in Q1 2015.
Anna Gudmundson, the group’s new chief executive appointed to address the ‘unsustainable situation’, commented:
“Recognising that the previous direct consumer retail focus failed to deliver the commercial results anticipated, we have identified an attractive opportunity within the growing B2B corporate wellness market.”
Gudmundson’s appointment sparked a move away from the company’s familiar strategy towards a move into the corporate sector – Fitbit has seen significant interest from organisations hoping to use the technology to engage their employees in a healthier, fitter lifestyle”
“On a corporate level we have strengthened our board and management team to ensure we have the requisite skill set for growth, implemented a number of cost saving initiatives, and undertaken a thorough review of our operations to ensure we are maximising efficiencies,” Gudmundson continued.
FitBug (LON:FITB) was trading at 0.510 – 24.44% at 11.29am BST.