Fitbug jumps on wearable sales news

29th May 2014 14:15

Wearable fitness products group Fitbug saw losses increase last year but impressed with sales for the new financial year that were already 60% higher than the whole of 2013.A loss before tax of £2.6m reflected significant investment in new product development and innovation and the strategic decision to focus the company's product range on the retail consumer market where new Chief Executive Malcolm Fried believes there are substantial growth opportunities as wearable device adoption become mainstream, such as Google Glass.Revenue in 2013 fell £1.3m to £0.75m as the company shifted strategy, but so far in 2014 sales and confirmed orders have hit £1.2m, with 20 retailers having confirmed plans to stock Fitbug product, including Tesco, Dixons and PC World in the UK and Radioshack in the US.Said Fried: "In broadening the product range, switching our strategic distribution focus to retail, and bolstering our management team, Fitbug has positioned itself for growth in 2014." He stressed that the company's strategy was supported by its financial backers, including the Kirsh Group, with all loans extended to end July 2015 on "attractive terms". £2m of new loans were added to £2m existing loan, both on an interest rate of 5%.Fitbug gave an update on legal action against San Francisco-based Fitbit, against which it has filed a suit that alleges trademark infringement and unfair business practices. A trial is scheduled in early 2015 and Fitbug said it "believes that it has a strong case". Shares in Fitbug were up 9.5% to 0.58p at 14:30 on Thursday. OH