25th Nov 2016 16:01
LONDON (Alliance News) - Zamano PLC said Friday it is cutting costs and two of its directors are stepping down, as the company ceases all ongoing mergers and acquisition activity and concentrates on cashflow, as it has suffered from a reduction in business due to the introduction of the Payforit initiative in the UK.
Payforit is a joint initiative of mobile network operators in the UK to further regulate mobile payments. Zamano, a mobile applications and services company, said the introduction of the regulatory change has led to a "significant reduction" in new business in the UK market.
Zamano has therefore started cutting costs, beginning with making seven people redundant out of its total staff of 18. Zamano said the job cuts will save approximately EUR330,000 annually, and said it is evaluating further cost saving measures.
"At the same time, the board has decided to cease all ongoing M&A discussions and focus on maximising cashflow from the existing business in the UK, Irish and International markets," added the company.
That change has led to directors Pat Landy and Ed Murphy stepping down from the board, and Zamano said it does not currently intend to replace them with new non-executive directors.
"We believe however, that as the market starts to adapt to the new regulatory regime, Zamano may be able to gradually improve the current run rate being experienced by its UK business," said the company.
Shares in Zamano were up 4.4% at 6.00 pence Friday.
By Adam Clark; [email protected]
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