This is a company in transition, according to a spokesperson for mobile payments processor and Aim minnow Monitise (MONI). That's not the half of it. Chief executive Lee Cameron has only been in the hot seat for a year, but it's fair to say that he's thrown the kitchen sink at trying to turn this business around. His plan comprises three phases: stabilise, simplify and then accelerate. The hope is that all the group's customers - mainly high-street banks - will transition on to the new FINKit platform, which will help drive more sustainable revenue growth.
Monitise plans to achieve this through a substantial corporate restructuring, and this appears to be paying off. Operating costs fell 45 per cent in the second half, although a significant reduction in top-line sales meant the bottom line couldn't be saved. Cash losses grew by a fifth to £41.8m. Drastic measures have been necessary, including the loss of 350 jobs; the company now employs just 500 people.
Progressive Equity Research predicts losses will narrow during the year ending June 2017, with a negative EPS reading of 0.5p for the June year-end in 2017, compared with minus 1.1p in 2016.
| MONITISE (MONI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 2.66p | MARKET VALUE: | £61m | |
| TOUCH: | 2.58-2.66p | 12-MONTH HIGH: | 5.99p | LOW: 1.61p |
| DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
| NET ASSET VALUE: | 2.3p* | NET CASH: | £42.1m | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 36.1 | -16.9 | -2.1 | nil |
| 2013 | 72.8 | -51.1 | -3.8 | nil |
| 2014 | 95.1 | -63.4 | -3.6 | nil |
| 2015 | 89.7 | -227 | -10.8 | nil |
| 2016 | 67.6 | -243 | -10.5 | nil |
| % change | -25 | - | - | - |
Ex-div: na Payment: na *Includes intangible assets of £36.2m, or 1.6p a share | ||||
