Still banking on Monitise

Monitise's full-year figures to 30 June were well-flagged at the time of last month's £31m cash call (), but they did underline the fact that breakeven is closer still for the live operations.

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.

What we said:

When: 8/07/10

Price: 18p

Performance to date: +18%

More share tips and updates...

IC View

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

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