Silver Bullet Data Services Group PLC on Thursday reported a half year of strong growth in revenue, and said it is ‘steadily moving’ towards positive earnings next year.

Despite the positive noises, Silver Bullet shares were down 14% at 86.50 pence on Thursday in London.

The London-based marketing services provider said pretax loss for the first half of 2023 was £1.6 million, reduced from £3.8 million a year before.

Revenue increased 79% to £4.2 million from £2.3 million. Revenue from the Customer Experience Services unit increased 65% to £2.9 million, and revenue from Silver Bullet’s AI contextual data platform 4D more than doubled to £1.2 million.

Silver Bullet said the latter was primarily driven by significant growth in the US market, which generated over 35% of group revenue. The overall revenue increase was ‘driven by the expansion of services to established customer base across the group’s three key markets of US, UK and [Asia-Pacific], alongside new logo wins’.

Cost of sales increased by 17% to £821,208, but administrative expenses were reduced by 10% to £4.5 million from £5.1 million.

Silver Bullet said its revenue growth and cost cutting measures have given it a significantly improved overall position, and it has strong growth potential in the US.

Chief Executive Ian James commented: ‘Whilst the demand by companies for data and privacy services and products remain strong, we are fully aware that the current global environment remains volatile and will run our business accordingly.

‘At Silver Bullet, we have technology solutions that assist customers in achieving their marketing and advertising objectives at lower cost and with higher returns and hence, despite these challenging macro-economic conditions, we continue to see robust demand from clients.’

James added that Silver Bullet is ‘steadily moving toward’ positive earnings before interest, tax, depreciation and amortisation in early 2024; consequently, ‘the board is optimistic about the outlook and views the future with confidence.’

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