Nektan PLC (LON:NKTN) have reported a rise in their annual revenues, however told shareholders that annual loss has widened.

In the year to June 30, 2019, the mobile gaming and casino technology platform recorded a pretax loss of £6.4 million compared to £5.0 million the year before.

Nektan alluded to factors such as restructuring costs and a £2.8 million loss on the removal of its subsidiary firm Respin LLC.

However, shareholders will be pleased as the firm saw its revenue climb 14% to £22.6 million from £19.9 one year ago. Looking at the revenue growth, the firm praised the sharp rise in business-to-business sales as the main factor for the results posted today.

Following this success, Nektan said that there is a plan to focus on business-to-business sales as part of its strategic review.

At the beginning of January, Nektan sold its loss-making UK business-to-consumer unit, allowing it to focus on its B2B business.

Gary Shaw, Interim Chief Executive Officer of Nektan, said:

“The restructuring represents an important milestone for Nektan. We can now focus on executing our strategy of becoming a dedicated casino technology and gaming content provider globally.  These initial results support the Directors’ decision to focus solely on B2B opportunities.

Trading for the six months to 31 December 2019 saw the Group achieving more than double the revenues for the same period last year. The last few months have seen an intense period of activity culminating in now having 34 sites live. With the majority of these going live at the back end of the calendar year, combined with a 3-4 month ramp up period, we expect to report further significant revenue growth during the current quarter (Q3 2020) – early signs in January underpin this.  As a result, the Group continues to anticipate reaching monthly EBITDA break-even by the end of this financial year.”

Nektan continues to build

In July, the firm saw full year revenues growth in its B2C and B2B segments, and a record number of partners live in the fourth quarter.

Despite the impact of UK taxation and player verification, which affected the Company in Q3 and Q4 , the Group’s full-year revenue still grew 14.8% on a year-on-year basis.

The Company attributed this to strong growth in the sales pipeline of its B2C and B2B sectors.

B2C announced the launch of 13 new white label casino sites during the fourth quarter, along with its first mobile bingo offering. B2B noted 12 live partners, up from 10 for Q3. The segment also announced the release of Volt Casino and MoPlay, as well as entry into the African continent with betting companies Betika and BetLion.

Shares in Nektan trade at 2p (+4.04%). 27/1/20 13:41BST.