Sondrel Holdings PLC said on Wednesday its annual loss widened despite a surge in revenue, but the company maintained a positive outlook looking forward.

The Reading, England-based semiconductor company said its pretax loss widened to £6.4 million in 2022, from £5.5 million in 2021.

This was due to significant spending on cash and non-cash expenditure items, including a £1.4 million spending on exceptional costs, Sondrel said.

The company’s revenue more than doubled to £17.5 million from £8.1 million the previous year, with Sondrel saying its target market continued to invest in new designs and to plan further new products.

The company said this revenue boost was a reflection of the strong recovery from the impact of the Covid-19 pandemic in the last two years, as the company successfully transitioned into a provider of turnkey services.

Revenue in the US multiplied to £3.7 million from £300,338 the previous year. External to the UK, US, and China, the company saw revenue dramatically rise to £7.7 million from £1.4 million the previous year.

The board decided that no dividend will be paid in the year; with the company seeking to retain distributable profit from the business to the extent they are generated.

Chief Executive Officer Graham Curren said: ‘I am incredibly excited about future growth prospects and look forward to updating shareholders as we progress to our medium-term target of revenues of over £100 million.’

Looking forward, the company said it remained confident despite current economic challenges. Its three priorities for the year are ensuring robust financial management, achieving operational excellence in all departments, and getting stakeholder approval.

The company said: ‘Despite the current economic challenges, the board remains confident that Sondrel’s core business model and team will deliver success in the years ahead.’

Shares in Sondrel Holdings were up 2.1% at 44.40 pence in London on Wednesday.

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