Monitise doesn't pay a dividend and has never made a profit, but the growth profile is truly impressive. Turnover has doubled for the third year in a row, and management has pencilled in a near doubling in the current year to at least £70m. Gross margins rose from 62 per cent to 66 per cent, with a target of 70 per cent in the second half of the current financial year, and Monitise expects to reach break-even on a cash-profit basis by next September.
Demand for payment systems software for mobile phones has grown significantly, and the order book more than doubled to £110m, with a further £160m expected from existing contracts. These include multi-year contracts with RBS, HSBC and the Co-operative Bank. Mobile banking has become increasingly popular, and registered users with Monitise rose 4.5m from a year earlier to over 17m.
Monitise has also been growing through acquisition, buying US-based rival Clairmail in March for about $173m (£109m) in an all-share deal. Since then, processed payments and transfers have doubled on an annualised basis to $20bn.
Canaccord Genuity expects 2013 adjusted pre-tax losses of £18.8m and loss per share of 1.5p.
| MONITISE (MONI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 33p | MARKET VALUE: | £ 376m | |
| TOUCH: | 32-33p | 12-MONTH HIGH: | 41p | LOW: 24p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 13p* | NET CASH: | £9.9m | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 1.49 | -14.0 | -5.50 | nil |
| 2009 | 2.66 | -13.1 | -4.00 | nil |
| 2010 | 6.02 | -17.0 | -3.70 | nil |
| 2011 | 15.3 | -17.2 | -2.10 | nil |
| 2012 | 36.1 | -16.9 | -2.10 | nil |
| % change | +136 | - | - | - |
Ex-div: na Payment: na *Includes intangible assets of £161m, or 14p a share | ||||
