18th Sep 2014 09:39
LONDON (Alliance News) - AIM-listed Zamano PLC Thursday said first-half pretax profit was broadly flat, as a significant drop in interest costs partly offset weaker margins due to a change in its business mix in the UK.
Zamano offers cloud-based messaging, mobile payments services, and mobile marketing to businesses.
In a statement, Zamano said it made a EUR964,400 pretax profit in the six months ended June 30, compared with GBP984,000 in the corresponding period last year. Revenue fell to EUR8.7 million from EUR9.0 million, but Zamano noted that the result was an improvement on the EUR7.0 million achieved in the second half of its last financial year.
Gross margin fell to 27.3% from 28.0% because Zamano expanded its third-party sales in the business-to-business area, which carries a lower margin. Finance expenses fell to GBP32,000 from GBP262,000.
Chief Executive Ross Conlon said the results were satisfactory in spite of a challenging trading environment in Zamano's core product areas
"These results have been achieved on the back of revenue diversification in the UK, good sales growth in Australia, tight cost control and a strong emphasis on the generation of cash," Conlon said in a statement.
The CEO said the group is continuing to invest in product development and is focussed on identifying acquisition, investment and joint-venture opportunities in the UK and Ireland in order to accelerate growth.
"Zamano has significant expertise in data analytics, mobile billing/payments and mobile marketing and is targeting its acquisition search where it can add substantial value to any business acquired," Conlon said.
The CEO said acquisitions and business development initiatives could be financed by the cash Zamano generates, or loan financing from banks and other financial institutions if required. He also said funding could also come "potentially through the issue of new equity."
Zamano shares were Thursday untraded at 8.50 pence.
By Samuel Agini; [email protected]; @samuelagini
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