Shares in Monitise (MONI) tanked 26 per cent after the mobile payments technology group's adjusted cash profit losses widened by a third to £42m. But what really rattled investors was a further downgrade to revenue guidance, together with news that chief executive Elizabeth Buse is stepping down for "personal reasons". Ms Buse, who only took sole charge in March, has been replaced by her deputy Lee Cameron. Judging by these results, the new boss will have his work cut out.
Monitise's switch to a subscription-based model, which should lower the upfront costs and technical hurdles of joining its network, has been "slower and more challenging" than anticipated. Shifting from building apps to becoming a new generation platform connecting banks with retailers and telecoms companies was largely to blame for a sharp reduction in software licensing sales. Management previously advised markets not to judge its performance until it returns to profit next year. That guidance was reiterated on results day, although revenue growth is no longer expected.