Monitise's transaction income jumped from £500,000 to £2.9m year on year and its 2m subscriber base is growing at a rate of 100,000 a month. In fact, strip out £11.8m of research and development and administration costs, and overall operating losses were just £2.5m last year, while the fund-raising leaves £42m of cash to spend building the business going forward.
Interestingly, recent acquisitions by Mastercard and partner Visa - of Datacash and Cybersource respectively - were struck on enterprise value/sales of 8.5 and 7.2 times respectively. At 21.25p, Monitise is currently valued at 2.5 times, on Evolution's £60m 2014 sales estimate.
Performance to date: +18%
Barely six weeks since our tip, and still two to three years from profits, it is still early days, but Monitise is in a real digital hot-spot and remains a serious takeover target. Buy.
Last IC view: Buy, 23p, 14 July 2010