29th Jan 2016 08:48
LONDON (Alliance News) - Proxama PLC said Friday it has received a "number of expressions" of interest in relation to its digital payments division, and said it believes that its balance sheet would be "significantly bolstered" by the sale of this business.
Proxama has two divisions, proximity marketing and digital payments. It said that both divisions had seen a stronger second half in 2015, resulting in total revenue of around GBP3 million for the full year, up from GBP800,000 in 2014.
In its marketing division, the company said it has signed contracts to provide a network of its 'Bluetooth' beacons for over 50,000 locations, mostly in London. This will help Proxama progress commercial discussions with key partners to run its first advertising campaign over its beacon network, the company said.
Its payments division made "good progress" during the year, most recently rolling out a USD1 million contract with an undisclosed US financial services technology company.
Whilst Proxama has sufficient capital resources "for the time being", it said it has been exploring options to fund the level of investment it needs to secure its financial future.
After receiving interest in the digital payments division, it has begun negotiations, and expects the sale of the business to complete in the second quarter of 2016. It did however caution there can be no certainty any offers will be made or sales concluded.
Proxama said the negotiations were solely for the digital payments division and did not include any bid for the shares of the quoted company.
Shares in Proxama were down 13% at 1.46 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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