A Media City-headquartered immersive virtual reality entertainment business, which works with the likes of The 02, Blackpool Tower and the owner of Alton Towers, has said 2021 "should be a period of measured investment" after being forced to enter "survival mode" at the height of the Covid-19 pandemic.
Immotion Group has set out its objectives for the rest of the year in an update to the London Stock Exchange which also reveals its revenue dropped from £3.6m to £2.8m in the 12 months to December 31, 2020.
Its adjusted EBITDA went from losses of £2.4m to £1.6m while its pre-tax losses were also cut from £5.5m to £4.8m.
The company recently announced it had signed a new deal with the maker of Wallace & Gromit and Shaun the Sheep.
Chairman Martin Higginson said: "The only way to describe 2020 is a year of unprecedented and unforeseeable challenges.
"The Covid-19 pandemic caused restrictions and lockdowns, which effectively closed our business for lengthy periods in 2020.
"Rather than sailing into profitable waters in spring 2020 as we had expected, we had to batten down the hatches and move into survival mode, requiring very tough decisions, particularly those which impacted our people.
"However, thanks to the resilience of our team, and the support of our shareholders, we have navigated through what we all hope is the worst of the impact of the Covid-19 pandemic on our business, though we are not complacent.
"Creative actions from our team saw two new divisions emerge, 'Let's Explore' and 'Uvisan'. The combination of these new revenue streams, and more importantly, the ongoing recovery of our core Location Based Entertainment (LBE) business, particularly as conditions improve in the USA, and with the UK set to re-open in mid-May 2021, has significantly boosted our confidence.
"While the future currently looks considerably healthier, we have reflected carefully on what risk appetite we have in the short term, as well as the resources available to us.
"We have concluded that the balance of 2021 should be a period of measured investment, as well as the coming of age of our group, with the key short-term objective being to move the group into EBITDA profitability and positive operating cashflows.
"With tight cost control, our existing partner business should be a platform for the overall profitability of our group and our new divisions should then provide further contribution."
