5th Sep 2013 08:32
LONDON (Alliance News) - Monitise PLC Thursday announced a GBP22.9 million acquisition, while reported widening losses in its most recent full year.
Monitise, a mobile banking and payments company, said its pretax loss widened to GBP51.1 million for the year ended June 30, compared with GBP16.9 million the year prior, despite seeing its revenues more than double to GBP72.8 million.
The revenue figures were accompanied by statistics showing that Monitise has 24 million registered customers, up from 17 million this time last year. These customers transferred over USD50 billion annually, one and a half times the figure last year.
However, the rise in revenue was exceeded by the company's increase in operating costs.
"We have made a positive start to our new year. We have a strong sales pipeline and broadening strategic partnerships allowing us to target revenue growth of approximately 50% in [the full-year] 2014," Chief Executive Alastair Likies said in a statement.
Monitise said it had acquired Grapple Mobile Ltd, which has developed smartphone and tablet applications for companies such as Whitbread, Procter & Gamble, Sky and B&Q. It said the deal could be worth up to GBP22.9 million if a number of unspecified targets are met by Grapple.
The share-based deal will see the issuance of 28.6 million Monitise shares, which Monetise values at approximately GBP16.5 million based on its September 4 closing price of 53.75 pence. This is Monitise's fifth share listing since the start of calendar 2013. Grapple will form part of Monitise Create, its division for creating digital software.
Monitise also said it is involved in discussions with two commercial banks in continental Europe regarding the implementation of mobile payment services and will give a market update at the appropriate time. Monitise said it is planning to move from AIM to the main market in the calendar year 2014.
Monitise said it has cash of GBP86.8 million, nearly three and a half times more than the year ended 2012. Much of this is down to Monitise's several issuances of new shares this calendar year, which raised GBP117.3 million net of expenses.
Monitise also said that Peter Ayliffee, formerly director of Lloyds TSB's UK retail banking business, would take on the role of non-executive chairman, succeeding Duncan McIntyre, who will continue work for Monitise in an advisory role.
Monitise shares were Thursday quoted at 50.00 pence, down 3.75 pence, or 7.0%.
By Samuel Agini; [email protected]; @samuelagini
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