Engage XR trades as expected in first half

Virtual reality (VR) technology company Engage XR said in an update on Tuesday that it was trading in line with market expectations, continuing to win new customers for its proprietary software platform and expanding relationships with existing clients in the first half.

The AIM-traded firm said total revenue for the six months ended 30 June was expected to be €1.76m, up from €1.25m year-on-year.

Revenue from the ‘Engage’ platform was set to have grown 62% to an unaudited €1.46m.

The board said revenue from the platform comprised 83% of total first half revenue, up 11 percentage points on the prior year.

Its unaudited gross margin improved to 81% from 80% year-on-year, with the company recording net cash of €4.9m as at 30 June.

“Engage has continued its impressive growth with more new customers embracing the technology and a continued increase in existing customers using the platform,” said chief executive officer David Whelan.

“A growing number of blue-chip companies are adopting virtual reality for events, training, and engaging with stakeholders worldwide.

“This gives us confidence in the prospects of ENGAGE Link, our new Metaverse platform set to launch later this year.”

Whelan said the company was “extremely excited” about the interest being shown by “major organisations” in its new technology.

“The metaverse is set to change global business practices, and Engage XR aims to be at the forefront of this revolution.”

Engage XR said it would publish its interim results for the six months ended 30 June on 13 September.

At 1116 BST, shares in Engage XR Holdings were down 3.83% at 11.06p.

Reporting by Josh White at Sharecast.com.