LONDON (ShareCast) - Forbidden Technology investors were unimpressed by the company's latest figures, which showed half-year revenue had fallen and costs had soared, mainly due to higher staffing levels.

The AIM-listed cloud video platform developer posted a pre-tax loss of £1.16m (2013 H1: £0.19m loss) on revenue of £0.35m (2013 H1: £0.40m). The cost of sales edged marginally higher, while administrative expenses jumped from £0.54m to £1.46m.

The group said the period had been one of "significant investment", which had seen the doubling of research and development staff as well as the setting-up of its new US subsidiary.

The decrease in revenue was partly attributed to the disruptive effect its technologies are having on the video editing market, which led a historically strong market player to take defensive action, it explained, adding that conservative executives are exercising caution as they decide which way to turn.

Later start dates for some major broadcast series and slow take-up of new opportunities in Sports also had an effect.

"We remain confident that a generational shift to cloud-based workflows is ongoing and that we are taking the right steps to take advantage of this," the group said.

The group had short term investments and cash totalling £6.45m at the end of the period.

Shares had fallen 13.5% to 17.3p by 16:16.

NR

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