Mobile marketing and technology firm 2ergo, creator of the hugely successful Guardian iPhone app, has reported pre-tax losses of £725,000 for the six months to the end of February 2010, compared to profits of £1.7m for the same period last year. The results come off the back of what the company describes as “a programme of substantial investment for the long-term development of the Group”, which was announced last November.

While revenues fell 9 per cent from £11.2m to £10.21m, 2ergo did see an increase in gross margin, from 43.5 per cent to 49.3 per cent. The company also says that it has seen a doubling of pipeline and work in progress over the last six months, though joint chief executive Barry Sharples says that this has presented the company with its “biggest challenge to date” –  that of keeping up with the recruitment of the right calibre of management and staff.

“When we announced this year’s investment plan in our last report, few people fully understood the impact of the current global recession and the problems it would cause for consumers and businesses alike,” says Sharples. “It is against this backdrop that we are delighted with 2ergos positioning during a transitional period as we invest for growth and as we integrate recent acquisitions across different geographies.”