Shares in mobile money payments specialist Monitise (MONI) rose about 15 per cent the day before these full-year results were announced, on the back of bullish research published by Goldman Sachs. Analysts there reiterated their "conviction buy" advice and hiked their share price target to 100p from 60p.
Monitise’s full-year figures were appropriately impressive. Turnover more than doubled for the fourth year in a row, of which 50 per cent was organic growth, while Monitise’s gross margin climbed to 76 per cent from 66 per cent last year. Although the shares still slipped back 7 per cent on the day, the figures actually appeared after management said that turnover is only expected to grow 50 per cent in the current year. The hefty reported loss didn't help sentiment, either, and operating costs more than doubled year-on-year, too. Management said that reflected three new acquisitions, continued investment in scaling its platform, and the impact of launching services in new jurisdictions. Monitise also announced plans to acquire Grapple, a European mobile design agency, in an all-share deal worth £16.5m. Potential earn-out payments could add another £22.9m to the price.
Broker Canaccord Genuity expects another loss in 2014, but pre-tax profit of £22.8m in 2015, giving EPS of 1.2p.
MONITISE (MONI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 50p | MARKET VALUE: | £783m | |
| TOUCH: | 50-50.3p | 12-MONTH HIGH: | 54p | LOW: 30p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 15p* | NET CASH: | £85.8m | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 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 |
| 2013 | 72.8 | -51.1 | -3.80 | nil |
| % change | +102 | - | - | - |
*Includes intangible assets of £193m, or 12p a share | ||||
