TIDMMONI

RNS Number : 6167X

Monitise PLC

23 February 2017

23 February 2017

Monitise plc

Interim Results for the six months to 31 December 2016

Substantially reduced losses and continued positive EBITDA

Market for FINkit continues to grow

London - 23 February 2017 - Monitise plc (LSE: MONI) ("Monitise" or the "Company"), the digital technology group specialising in financial services, announces its unaudited interim results for the six months ended 31 December 2016.

 
                            FY17    FY16     FY16     FY16 
 GBPm                         H1      H2       H1    Total 
 Revenue                    28.2    34.2     33.4     67.6 
 EBITDA(1)                   0.3     0.6    -20.2    -19.6 
 Loss before tax            -7.5   -32.6   -210.5   -243.1 
 Cash from operations       -4.7     0.4    -22.3    -21.9 
 Exceptional & other 
  cash usage(2)            -10.0   -11.7    -13.1    -24.8 
 Cash balance               27.3    42.1     53.4     42.1 
 Headcount (period end)      420     500      627      500 
 

Highlights

-- Transformation initiated a year ago delivers EBITDA profitability for the second consecutive six month period, with a significant reduction in reported loss

   --      50% revenue growth from the Content business unit 
   --      Relaunch of Create as Big Radical, led by industry heavyweight 
   --      New president of Americas  business unit appointed to drive business development 
   --      Continuing strong interest from financial institutions in FINkit(R) platform 
   --      FINkit partnership programme launched 
   --      FINkit agreements under active discussion 

Monitise's Chief Executive, Lee Cameron said - 'Our transformation programme is nearing completion, and continued half on half EBITDA profitability demonstrates that it is working. Having successfully stabilised and simplified the Group, the challenge now is to grow our revenue. To help us achieve that we have recently appointed new senior management to two of our business units, and we remain fully committed to, and optimistic about, the potential of our FINkit platform.

'Deadlines in 2017/18 for the implementation of regulatory initiatives that focus on increasing competition and opening up banking in both Europe and the UK are now imminent. These continue to ensure that delivering on digital transformation remains top of the retail banks' agendas.

'Mandates from both the UK's Competition and Markets Authority and the European Commission's Payments Services Directive (PSD2) are driving demand from retail banks for the type of faster technology change enabled by FINkit. We believe that the market for our products and services is increasingly moving in our direction, and I remain positive about the future of our business.

'FINkit solves the challenge banks face when seeking to accelerate the delivery of compliant digital services to their customers. We will continue to focus our efforts on serving the needs of our existing and prospective financial services clients, whilst exploring other opportunities with interested parties who also see the value in what we have built. Calendar year 2017 will be a pivotal year for Monitise.'

Outlook

As previously stated, Group revenue is expected to decline in the financial year to 30 June 2017, but the year will benefit from the full year impact of cost-savings already achieved in the interim results to 31 December 2016.

FINkit represents a real opportunity for Monitise to establish long-term sustainable growth, and we will continue to invest in developing that part of our business throughout the current financial year.

FY17 capital spending will be materially lower than FY16, and cash outflows relating to onerous contracts will fall from GBP6.7m in H1 FY17 to approximately GBP1m in H2 FY17. Given this reduction and the stabilisation of the Group, we are confident that we have sufficient funding in place to execute on our plans. We will continue to evaluate all the Group's assets to make sure they remain relevant to our strategy and add to our value.

This announcement contains inside information.

(1) EBITDA is defined as operating loss before exceptional items, depreciation, amortisation, impairments and share-based payments charge.

(2) Exceptional & other cash usage does not include the impact of foreign exchange movements.

FINkit(R) is a registered trademark in the UK.

For further information:

 
 Monitise plc                      Tel: +44(0)20 
  Lee Cameron, Chief Executive      3657 0900 
  Officer 
  Gavin James, Chief Operating 
  Officer 
 Canaccord Genuity (NOMAD)         Tel: +44(0)20 
  Simon Bridges, Andrew Buchanan    7523 8000 
 Attila Consultants                Tel: +44(0)20 
  Charles Cook, Nita Shah           7947 4489 
                                    Tel: +44(0)7710 
                                    910 563 
 

About Monitise

Monitise plc is a specialist in financial services technology focused on accelerating the digital transformation of banks and financial institutions.

Monitise FINkit platform and associated capabilities builds upon over a decade of experience in delivering digital services to banks and financial services partners. Whether it is augmenting legacy systems with minimal impact on those systems, a greenfield project, or strategic digital transformation, FINkit delivers innovation at speed, safely and securely.

Monitise management will present the results at 9.00 am today 23 February 2017 at the London offices of their NOMAD and broker Canaccord Genuity. A recording of the meeting will be made available on the investor relations section of the Monitise website.

Find out more at www.monitise.com

Six-month review 2017

Overview

In the first half of financial year 2017 we continued to see the benefits from the substantial transformation put in place in financial year 2016.

First-half operating expenses fell 20% and the number of employees reduced by 16% compared to the second half of 2016.

The transformation programme has delivered a shift from a fixed to a variable cost structure that has enabled us to retain a positive EBITDA in the face of the expected decline in revenues as we transition the business.

As expected, revenue decline came from our Americas and Europe businesses, which also impacted our Big Radical and MEA business units. Throughout the period there have been a number of new customer wins, particularly in our Big Radical and MEA business units. We also saw strong growth in the Content business which is highly profitable and benefiting not only from growth in site visits, but also in revenue per visit.

FINkit will be a major driver of future growth for the Group and we will continue to invest in the development of this business unit, in its people, technology and sales channels. We remain confident in the value of FINkit and the long-term opportunity that exists. Financial institutions are coming under increased pressure from regulators and their customers to deliver more digital engagement and are under threat from competitors, including FinTechs, who will seek to benefit from this change. As we have experienced with prior product launches, the sales cycle to financial institutions involves rigorous procurement processes including extensive technical diligence. It is this barrier that often presents too high a hurdle for FinTechs to achieve but one that Monitise has excelled at and welcomes.

Business unit and financial review

 
                                H1 FY17                              H1 FY16 
                                         Total                                     Total 
 GBPm           External   Internal    revenue   EBITDA   External   Internal    revenue   EBITDA 
-------------  ---------  ---------  ---------  -------  ---------  ---------  ---------  ------- 
 FINkit                -          -          -     -2.7          -          -          -     -1.3 
 Europe              9.8        0.1        9.9      1.3       15.2        0.4       15.6     -7.1 
 Americas            6.3          -        6.3      0.1       10.0          -       10.0     -3.4 
 Big Radical         1.9        0.1        2.0     -0.8        1.5        1.0        2.5     -0.9 
 MEA                 3.2        0.5        3.7      0.3        2.2        2.1        4.3      1.0 
 Content             7.0          -        7.0      3.2        4.5        0.2        4.7      0.9 
 Unallocated                              -0.7     -1.1                             -3.7     -9.4 
-------------  ---------  ---------  ---------  -------  ---------  ---------  ---------  ------- 
 Group              28.2       -0.7       28.2      0.3       33.4       -3.7       33.4    -20.2 
 

As anticipated in previous announcements, revenues fell to GBP28.2m but it was pleasing to see that we were able to maintain a positive profit at the EBITDA level of GBP0.3m.

The significant reduction in the loss before tax from GBP210.5m in H1 FY16 to GBP7.5m in H1 FY17 reflects the non-recurrence of the impairment charges taken in H1 FY16 and a net exceptional credit of GBP7.4m in H1 FY17 as we settled the majority of our onerous contracts at a cost within the levels provided.

The onerous contract provisions were significantly reduced as we exited these contracts and sublet or assigned all of our space at our previous head office at Gresham Street, London. The provisions at the end of the prior year of GBP18.8m have been reduced to GBP3.7m with the bulk of the residual being the remaining property obligations, principally the customary run off of rent free periods.

Business segments

FINkit

The six months to 31 December 2016 saw an enormous amount of activity for the FINkit business unit. Whilst the lack of a signed contract reflects the long and complex sales cycle when engaging with large financial institutions, our sales team are very actively engaged with potential clients with agreements under active discussion. Banks who have had an opportunity to test FINkit, review the technology and meet our people, have been unanimously complimentary and pleased with what they have witnessed.

Banks understand the challenge they face and whilst some will choose to solve the problem by utilising internal resources, hiring digital leaders from other industries and engage in innovation theatre, others will look to partner with businesses who can offer an alternate approach.

We are very encouraged by the response we have received and the level of interest for FINkit enabled services from both existing and prospective customers. It is with this background that we remain confident that FINkit will gain its first customer and then enjoy further traction in providing financial institutions with a platform that is fit for purpose, scalable, compliant and flexible.

FINkit is not a major re-platforming project for a bank nor does it come at great expense. FINkit can be implemented simply and cost effectively giving the bank an accelerated time to value and a platform upon which they can build, launch and run successive digital propositions that deliver more value to their customers and can be consumed on an 'as needed' basis both commercially and operationally.

A perfect storm now exists where banks are rethinking the way they serve their customers. PSD2 and the open banking initiative are providing the regulatory impetus for banks to digitally engage and allow greater competition from FinTechs and others who see an opportunity to use the banks' constraints to their advantage. Customers demand more from their bank and often expect a digital-native experience from the financial services provider regardless of the compliance that a bank must ensure is an integral part of their offering.

FINkit is purpose-built to help banks and financial institutions level the playing field by enabling rapid development and deployment of compliant services to meet the demands of regulators and customers whilst defending their business from the threat of disruptors and non-regulated enterprises. We also enable financial institutions to benefit from collaboration with FinTechs with whom we are curating capability.

Until we are able to evidence our first operational contract, we will continue to tightly control our cost base including deferring certain spend until demand requires it. Where we consider it important to invest in the on-going development of FINkit to enhance its capabilities, we will do so and in line with this we have recorded development capital expenditure of GBP2.0m in the period.

Europe

The revenues in our Europe business are derived from our Monitise Enterprise Platform (MEP).

As previously guided, the Europe business saw a reduction in revenues from GBP15.6m in H1 FY16 to GBP9.9m in H1 FY17. The reduction in revenue results from the Visa Europe contract ending on 30 June 2016 and reduced activity levels with a significant customer, ahead of them taking the hosting of the platform in-house.

The Europe business has significantly reduced its cost base from GBP22.7m in H1 FY16 to GBP8.6m in H1 FY17. This reduced cost base has also been structured to be more variable with business activity. Whilst the Europe business achieved an EBITDA profit of GBP1.3m for the last six months (H1 FY16 loss GBP7.1m), we expect to see its revenue further decline as we transition from providing hosted services and MEP customers migrate their services to the FINkit platform.

Americas

The Americas business now comprises the Monitise Vantage Platform which powers mobile banking and messaging services for banks and credit unions across the Americas.

The business has seen a reduction in revenues driven by the Visa Inc contract ending at the end of the last financial year, as previously announced, and a significant customer taking their activity in-house.

The business has been through a significant change to its cost base, with the level of cost being reduced significantly from GBP13.4m in H1 FY16 to GBP6.2m in H1 FY 17, as well as the cost base being restructured to ensure it is more variable with business activity. The business reported an EBITDA profit of GBP0.1m for the six months benefiting from revenues on the final legacy contract in this region and the settlement of claims provided for in the financial year to 30 June 2016.

Growth in our Americas business will be driven by the sale of additional products, including FINkit. As the emphasis of the business changes from cost reduction to customer management and new business development, a new management team is being put in place. This management team is being led by Fatih Isbecer, previously CEO and founder of our MEA business, who has a wealth of experience in building businesses and delighting customers with faultless delivery. He and his team will focus on product development, customer satisfaction and new wins.

Big Radical

In December, Scott Ewings joined us as Managing Director of Monitise Create, having led significant growth and transformation at leading design houses. Under his leadership we relaunched the business in January 2017 as Big Radical. There is a clear market appetite for Big Radical's expertise.

Big Radical delivers a highly regarded full digital agency capability which provides market leading strategy consultancy, human first digital design and UI/UX expertise to its clients which are from a variety of industries including financial services, leisure, automotive and services.

Whilst we do not expect an immediate revenue impact from the relaunch, the initial feedback on the proposition has been very positive and we look forward to improving results from the business.

The business continued to win new clients in the period and we are confident that this trend will continue throughout 2017 returning the business to growth and profitability. However, the nature of the business means the timing of projects and revenue is lumpy.

Despite a reduction in the cost base of the business from GBP3.4m in H1 FY 16 to GBP2.8m in H1 FY17, we incurred an EBITDA loss of GBP0.8m (GBP0.9m H1 FY16).

MEA

The MEA business provides digital design and engineering expertise to a range of customers, both in financial services and other industries in its regional market of Turkey and the Middle East.

The MEA business has continued to perform well despite the reduction in the level of Group-derived revenue noted in previous reports. MEA reported revenues of GBP3.7m (GBP4.3m H1 FY16) which is consistent with the level of activity in the second half of FY16. External revenue grew 44% compared to H1 FY16 and 6% compared to H2 FY16.

The business continues to manage its cost base tightly and reported EBITDA of GBP0.3m (GBP1.0m H1 FY16). The business will also increasingly provide these services to the broader Monitise group as it supports the capability and resource requirements of both the FINkit and Americas businesses.

Content

The Content business, utilising its network of retailers, affiliates and ticket agencies, provides offers to consumers which generate revenue for the business when they are redeemed.

The Content business continues its growth with revenues in the seasonally strong first half of GBP7.0m (GBP4.7m H1 FY16). The growth continues to be driven by increasing visits to the UK voucher business myvouchercodes.co.uk and by growth in revenue per visit. The strong revenue performance produced EBITDA of GBP3.2m (GBP0.9m H1 FY16).

The business is investing in a number of initiatives that expand the proposition, increase the user base and revenue per visit. The business also continues to invest in its international sites in France, USA, Germany and Australia where revenues have increased 143% versus H1 FY16, albeit from a low base, and in adjacent offerings that enhance the content and benefits to both retailers and consumers.

Central cost

The Group central cost base has remained consistent with the second half of FY16 at GBP1.1m, following a material reduction from the first half of FY16 when the cost-base was GBP9.4m.

Income statement

Depreciation and amortisation

Depreciation in the period was GBP0.9m (GBP2.8m H1 FY16). Amortisation for the period was GBP10.0m (GBP7.2m H1 FY16) which includes amortisation of acquired intangibles of GBP5.8m, capitalised development costs of GBP3.2m, and purchased software licences of GBP1.0m. The increase in amortisation in the period was due to the commencement of amortisation of capitalised development costs relating to the FINkit platform and the reduction in useful economic life estimates reported at last year end.

Share based payments

The share based payments charge of GBP4.4m (GBP10.4m H1 FY16), comprises GBP2.8m in relation to earn out share based payments and GBP1.6m related to employee share option grants. The charge for the period is the last charge in relation to earn out share based payments as all such arrangements ended as at 31 December 2016.

Exceptional costs

A net credit of GBP7.4m for exceptional items has been taken in the period compared with net charges of GBP1.0m for the 6 months to 31 December 2015 and GBP3.5m for the year to 30 June 2016. The make-up of the net credit is as follows.

 
 GBPm                      H1 FY17   H1 FY16   FY 2016 
 Exceptional income        -         (5.0)     (6.9) 
 Onerous contracts         (7.2)     (2.4)     (3.2) 
 Surplus property costs    (1.0)     2.3       4.4 
 Restructuring costs       -         6.0       8.7 
 Other                     0.8       0.1       0.4 
 Total                     (7.4)     1.0       3.5 
 

Other costs relate to corporate development costs.

Loss before tax

The Group reported a loss before tax of GBP7.5m (GBP210.5m H1 FY16).

Tax

A tax credit of GBP0.5m (GBP5.1m H1 FY 16) was recorded in the period. This principally related to non-cash movements on the unwinding of deferred tax recognised in relation to acquired intangible assets. The Group has gross tax losses of GBP320m which are available for offset against future profits in the companies in which these arose.

Attributable loss

The reported loss after tax for the period was GBP7.0m (GBP205.4m H1 FY16).

Cash flow and funds

The Group ended the half with cash balances of GBP27.3m as at 31 December 2016 compared to GBP42.1m at 30 June 2016, and no bank debt. The main areas of cash usage in the period were the restructuring of the business and the settlement of onerous contracts of GBP6.8m, capital expenditure of GBP2.7m and cash from operations of GBP4.7m.

The settlement of the majority of the onerous contracts leaves the business in a stronger position enabling a focus on operations. The remaining onerous contract and restructuring provisions of GBP3.7m will be spread over a number of years with the anticipation that GBP1m will be paid in the second half of the financial year.

Cash from operations in H1 FY17 is impacted by reductions in deferred income of GBP1.5m as large customer contracts reduce or end, and by GBP2.5m from the timing of our payment runs at the period end when compared to the year-end timing.

 
 Condensed Consolidated Statement 
  of Comprehensive Income 
 
                                                       6 months      6 months        Year 
                                                          ended         ended       ended 
                                                    31 December   31 December          30 
                                                                                     June 
                                                           2016          2015        2016 
                                                    (unaudited)   (unaudited)   (audited) 
                                             Note       GBP'000       GBP'000     GBP'000 
------------------------------------------  -----  ------------  ------------  ---------- 
 Revenue                                     4           28,158        33,359      67,565 
 Cost of sales                                         (11,242)      (15,846)    (28,706) 
------------------------------------------  -----  ------------  ------------  ---------- 
 Gross profit                                            16,916        17,513      38,859 
 Operating costs before depreciation, 
  amortisation, impairments and 
  share-based payments                                 (16,567)      (37,707)    (58,482) 
------------------------------------------  -----  ------------  ------------  ---------- 
 EBITDA                                      6              349      (20,194)    (19,623) 
 Depreciation, amortisation and 
  impairments                                          (10,854)     (179,986)   (205,216) 
------------------------------------------  -----  ------------  ------------  ---------- 
 Operating loss before share-based 
  payments and exceptional items                       (10,505)     (200,180)   (224,839) 
 Share-based payments                                   (4,440)      (10,407)    (16,468) 
 Exceptional items                           6            7,381         (980)     (3,492) 
------------------------------------------  -----  ------------  ------------  ---------- 
 Operating loss                              5          (7,564)     (211,567)   (244,799) 
 Finance income                                             162         1,147       1,975 
 Finance costs                                             (66)          (92)       (200) 
 Share of post-tax profit/(loss) 
  of joint ventures                                           -          (29)        (58) 
------------------------------------------  -----  ------------  ------------  ---------- 
 Loss before income tax                                 (7,468)     (210,541)   (243,082) 
 Income tax                                                 465         5,133       9,711 
------------------------------------------  -----  ------------  ------------  ---------- 
 Loss for the period/year attributable 
  to the owners of the parent                           (7,003)     (205,408)   (233,371) 
 Other comprehensive (expense)/income 
  that may be reclassified subsequently 
  to profit or loss: 
 Currency translation differences 
  on consolidation                                      (1,734)         7,585       8,889 
------------------------------------------  -----  ------------  ------------  ---------- 
 Total comprehensive expense for 
  the period/year attributable 
  to the owners of the parent                           (8,737)     (197,823)   (224,482) 
------------------------------------------  -----  ------------  ------------  ---------- 
 
 Loss per share attributable 
  to owners of the parent during 
  the period/year (expressed 
  in pence per share): 
 - basic and diluted                         7           (0.3p)        (9.3p)     (10.5p) 
------------------------------------------  -----  ------------  ------------  ---------- 
 
 The comparative figures include a reclassification 
  of marketing costs from operating expenses to cost 
  of sales (see note 2.1). 
 
 
 
 Condensed Consolidated Statement 
  of Financial Position 
 
                                                    As at         As at       As at 
                                              31 December   31 December     30 June 
                                                     2016          2015        2016 
                                              (unaudited)   (unaudited)   (audited) 
                                       Note       GBP'000       GBP'000     GBP'000 
------------------------------------  -----  ------------  ------------  ---------- 
 ASSETS 
 Non-current assets 
 Property, plant and equipment                      2,674         3,780       3,338 
 Intangible assets                     8           28,263        57,126      36,155 
 Investments in joint ventures                          -           471           - 
 Other receivables                                    649             -         370 
------------------------------------  -----  ------------  ------------  ---------- 
                                                   31,586        61,377      39,863 
 Current assets 
 Trade and other receivables                       16,215        23,064      15,970 
 Current tax assets                                     3             -          12 
 Cash and cash equivalents             9           27,325        53,367      42,089 
------------------------------------  -----  ------------  ------------  ---------- 
                                                   43,543        76,431      58,071 
------------------------------------  -----  ------------  ------------  ---------- 
 Total assets                                      75,129       137,808      97,934 
------------------------------------  -----  ------------  ------------  ---------- 
 
 LIABILITIES 
 Current liabilities 
 Trade and other payables                        (19,221)      (28,030)    (21,627) 
 Current tax liabilities                                -          (11)           - 
 Provisions                            10         (1,227)      (16,341)    (10,864) 
 Financial liabilities                 11           (613)       (1,023)     (1,002) 
------------------------------------  -----  ------------  ------------  ---------- 
                                                 (21,061)      (45,405)    (33,493) 
 
 Non-current liabilities 
 Deferred income and other payables               (1,171)       (3,499)       (950) 
 Provisions                            10         (2,470)       (8,002)     (8,016) 
 Financial liabilities                 11           (560)       (1,625)       (807) 
 Deferred tax liabilities                           (509)       (5,073)     (1,021) 
------------------------------------  -----  ------------  ------------  ---------- 
                                                  (4,710)      (18,199)    (10,794) 
 
 Total liabilities                               (25,771)      (63,604)    (44,287) 
------------------------------------  -----  ------------  ------------  ---------- 
 Net assets                                        49,358        74,204      53,647 
------------------------------------  -----  ------------  ------------  ---------- 
 
 EQUITY 
 Capital and reserves attributable 
  to owners of the parent 
 Ordinary shares                       12          22,961        22,044      22,519 
 Ordinary shares to be issued          12               -         2,511       2,511 
 Share premium                         12         383,725       383,721     383,721 
 Foreign exchange translation 
  reserve                                           4,643         5,073       6,377 
 Other reserves                                   276,355       262,034     269,449 
 Accumulated losses                             (638,326)     (601,179)   (630,930) 
------------------------------------  -----  ------------  ------------  ---------- 
 Total equity                                      49,358        74,204      53,647 
------------------------------------  -----  ------------  ------------  ---------- 
 
 
 
 Condensed Consolidated Statement 
  of Changes in Equity 
 
 
                                Ordinary                                       Share- 
                                  shares 
                                      to                            Reverse     based                  Foreign 
                     Ordinary         be     Share    Merger    acquisition   payment   Accumulated   exchange 
                       shares     issued   premium   reserve        reserve   reserve        losses    reserve       Total 
                      GBP'000    GBP'000   GBP'000   GBP'000        GBP'000   GBP'000       GBP'000    GBP'000     GBP'000 
------------------  ---------  ---------  --------  --------  -------------  --------  ------------  ---------  ---------- 
 Six months 
  to 31 December 
  2015 
 Balance at 
  1 July 2015          21,682      2,511   383,721   228,672       (25,321)    40,863     (397,833)    (2,512)     251,783 
 Loss for the 
  period                    -          -         -         -              -         -     (205,408)          -   (205,408) 
 Other 
  comprehensive 
  income                    -          -         -         -              -         -             -      7,585       7,585 
------------------  ---------  ---------  --------  --------  -------------  --------  ------------  ---------  ---------- 
 Total 
  comprehensive 
  (expense)/income          -          -         -         -              -         -     (205,408)      7,585   (197,823) 
 Issue of Ordinary 
  shares relating 
  to prior year 
  business 
  combinations            357          -         -     9,511              -      (36)             -          -       9,832 
 Share-based 
  payments                  -          -         -         -              -    10,407             -          -      10,407 
 Exercise of 
  share options             5          -         -         -              -   (2,062)         2,062          -           5 
------------------  ---------  ---------  --------  --------  -------------  --------  ------------  ---------  ---------- 
 Balance at 
  31 December 
  2015                 22,044      2,511   383,721   238,183       (25,321)    49,172     (601,179)      5,073      74,204 
------------------  ---------  ---------  --------  --------  -------------  --------  ------------  ---------  ---------- 
 
 Twelve months 
  to 30 June 
  2016 
 Balance at 
  1 July 2015          21,682      2,511   383,721   228,672       (25,321)    40,863     (397,833)    (2,512)     251,783 
 Loss for the 
  year                      -          -         -         -              -         -     (233,371)          -   (233,371) 
 Other 
  comprehensive 
  income                    -          -         -         -              -         -             -      8,889       8,889 
------------------  ---------  ---------  --------  --------  -------------  --------  ------------  ---------  ---------- 
 Total 
  comprehensive 
  (expense)/income          -          -         -         -              -         -     (233,371)      8,889   (224,482) 
 Issue of Ordinary 
  shares relating 
  to prior year 
  business 
  combinations            791          -         -     9,511              -     (470)             -          -       9,832 
 Share-based 
  payments                  -          -         -         -              -    16,468             -          -      16,468 
 Exercise of 
  share options            46          -         -         -              -     (274)           274          -          46 
------------------  ---------  ---------  --------  --------  -------------  --------  ------------  ---------  ---------- 
 Balance at 
  30 June 2016         22,519      2,511   383,721   238,183       (25,321)    56,587     (630,930)      6,377      53,647 
------------------  ---------  ---------  --------  --------  -------------  --------  ------------  ---------  ---------- 
 
 Six months 
  to 31 December 
  2016 
 Balance at 
  1 July 2016          22,519      2,511   383,721   238,183       (25,321)    56,587     (630,930)      6,377      53,647 
 Loss for the 
  period                    -          -         -         -              -         -       (7,003)          -     (7,003) 
 Other 
  comprehensive 
  expense                   -          -         -         -              -         -             -    (1,734)     (1,734) 
------------------  ---------  ---------  --------  --------  -------------  --------  ------------  ---------  ---------- 
 Total 
  comprehensive 
  expense                   -          -         -         -              -         -       (7,003)    (1,734)     (8,737) 
 Issue of Ordinary 
  shares relating 
  to prior year 
  business 
  combinations            438    (2,511)         -     2,466              -         -         (393)          -           - 
 Share-based 
  payments                  -          -         -         -              -     4,440             -          -       4,440 
 Exercise of 
  share options             4          -         4         -              -         -             -          -           8 
------------------  ---------  ---------  --------  --------  -------------  --------  ------------  ---------  ---------- 
 Balance at 
  31 December 
  2016                 22,961          -   383,725   240,649       (25,321)    61,027     (638,326)      4,643      49,358 
------------------  ---------  ---------  --------  --------  -------------  --------  ------------  ---------  ---------- 
 
 
 
 Condensed Consolidated Cash 
  Flow Statement 
                                                 6 months      6 months        Year 
                                                    ended         ended       ended 
                                              31 December   31 December     30 June 
                                       Note          2016          2015        2016 
                                              (unaudited)   (unaudited)   (audited) 
                                                  GBP'000       GBP'000     GBP'000 
------------------------------------  -----  ------------  ------------  ---------- 
 Cash flows used in operating 
  activities 
 Cash used by operations                 13       (4,732)      (22,321)    (21,869) 
 Exceptional expenses (net)                       (6,793)       (5,921)    (15,959) 
 Net income tax paid                                 (35)          (29)        (80) 
------------------------------------  -----  ------------  ------------  ---------- 
 Net cash used in operating 
  activities                                     (11,560)      (28,271)    (37,908) 
------------------------------------  -----  ------------  ------------  ---------- 
 Investing activities 
 Investments in joint ventures                          -         (500)       (500) 
 Interest received                                     90           191         338 
 Proceeds on disposal of property, 
  plant and equipment                                (13)             -          35 
 Purchases of property, plant 
  and equipment                                     (291)         (649)       (894) 
 Purchase and capitalisation 
  of intangible assets                            (2,420)       (6,803)     (8,238) 
------------------------------------  -----  ------------  ------------  ---------- 
 Net cash used in investing 
  activities                                      (2,634)       (7,761)     (9,259) 
------------------------------------  -----  ------------  ------------  ---------- 
 Financing activities 
 Proceeds from issuance of ordinary                     -            39           - 
  shares (net of expenses) 
 Share options and warrants 
  exercised                                             8             5          85 
 Interest paid                                       (30)          (67)       (122) 
 Repayments of finance lease 
  liabilities                                       (626)         (355)     (1,155) 
------------------------------------  -----  ------------  ------------  ---------- 
 Net cash used in financing 
  activities                                        (648)         (378)     (1,192) 
------------------------------------  -----  ------------  ------------  ---------- 
 Net decrease in cash and cash 
  equivalents                                    (14,842)      (36,410)    (48,359) 
 Cash and cash equivalents at 
  beginning of the period/year                     42,089        88,801      88,801 
 Effect of exchange rate changes                       78           976       1,647 
------------------------------------  -----  ------------  ------------  ---------- 
 Cash and cash equivalents at 
  end of the period/year                           27,325        53,367      42,089 
------------------------------------  -----  ------------  ------------  ---------- 
 
 
 
 1. General information 
 Monitise plc ('the Company'), and its subsidiaries 
  (together 'the Group') is a specialist in financial 
  services technology primarily focused on accelerating 
  the digital transformation of banks and financial institutions. 
  The Group is headquartered in the UK and operates ventures 
  in the UK, US and Turkey. 
 The Company is a public limited company incorporated 
  and domiciled in England and Wales whose shares are 
  publicly traded on the Alternative Investment Market 
  ('AIM') of the London Stock Exchange. 
 
 The condensed consolidated interim financial information 
  was approved for issue by the Board on 22 February 
  2017. 
 This condensed consolidated interim financial information 
  does not comprise statutory accounts within the meaning 
  of Section 434 of the Companies Act 2006. Statutory 
  accounts for the year ended 30 June 2016 were approved 
  by the Board on 7 September 2016 and delivered to the 
  Registrar of Companies. The Auditors' report on those 
  accounts was unqualified, did not contain an emphasis 
  of matter paragraph and did not contain any statement 
  under Section 498 of the Companies Act 2006. 
 
 The condensed consolidated interim financial information 
  is neither audited nor reviewed by the auditors and 
  the results of the operations for the six months ended 
  31 December 2016 are not necessarily indicative of 
  the operating results for future operating periods. 
 2. Summary of significant accounting policies 
 The principal accounting policies applied in the preparation 
  of these consolidated financial statements are set 
  out below. The policies have been applied consistently 
  unless otherwise stated. They are the same as those 
  used in preparing the consolidated financial statements 
  at 30 June 2016. 
 2.1. Basis of preparation 
 The condensed consolidated interim financial information 
  has been prepared under the measurement principles 
  of International Financial Reporting Standards ('IFRS') 
  as adopted by the European Union ('IFRS as adopted 
  by the EU'), using accounting policies and methods 
  of computation consistent, except as noted below, with 
  those set out in the Company's 2016 Annual Report and 
  Accounts. The financial statements have been prepared 
  under the historical cost convention, as modified, 
  where applicable, by the revaluation of financial assets 
  and financial liabilities (including derivatives) at 
  fair value through profit or loss. As permitted by 
  AIM rules, the Group has not applied IAS 34 'Interim 
  reporting' in preparing this interim report. 
 The Group changed the classification in the prior year 
  of certain marketing costs from operating expenses 
  to cost of sales to more appropriately reflect the 
  relationship of these costs to the related revenue 
  activity. The prior period comparatives have been restated 
  by GBP991,289 to reflect the revised classification. 
 Based on projections prepared of the Group's anticipated 
  future results, the Directors have reasonable expectations 
  that the Group will have adequate resources to continue 
  in existence for the foreseeable future. Therefore, 
  the Directors continue to adopt the going concern basis 
  in preparing this financial information. 
 2.2. Accounting policies 
 The accounting policies applied are consistent with 
  those of the annual financial statements for the year 
  ended 30 June 2016, as described in those annual financial 
  statements. 
 The following new standards, amendments to standards 
  or interpretations are mandatory for the first time 
  for the financial year beginning 1 July 2016, but are 
  not currently relevant to the Group, or have had no 
  material impact: 
 --                              Amendments to IAS 1: "Presentation of financial 
                                  statements" on the disclosure initiative 
 --                              Amendment to IAS 16 "Property, Plant and Equipment" 
                                  and IAS 38 "Intangible assets" on depreciation 
                                  and amortisation 
 --                              Amendments to IAS 27: Equity Method in Separate 
                                  Financial Statements 
 --                              Amendment to IFRS 11 "Joint Arrangements on Acquisition 
                                  of an Interest in a Joint Operation" 
 --                              IFRS 14 "Regulatory Deferral Accounts" 
 --                              Amendment to IFRS 10, IFRS 12 and IAS 28 "Investment 
                                  Entities": Applying the Consolidation Exception 
 --                              Annual improvements to IFRSs 2012-2014 
 --                              Amendments to IFRS 10 and IAS 28: Sale of Contribution 
                                  of Assets between an Investor and its Associate 
                                  or Joint Venture 
 --                              Amendments to IAS 16 and IAS 41: Bearer Plants 
 
 The following new standards, amendments to standards 
  and interpretations have been issued but will not be 
  effective until financial years beginning on or after 
  1 July 2017: 
                                                                                                    Effective date 
                                                                                       (subject to EU endorsement) 
 --                              IFRS 15 "Revenue from Contracts                                    1 January 2018 
                                 with Customers" 
 --                              IFRS 9 "Financial Instruments"                                     1 January 2018 
 --                              IFRS 16 "Leases"                                                   1 January 2019 
 
 The Group is currently assessing the impact of the 
  other standards listed above on its results, financial 
  position and cash flows. 
 
 The Group continues to monitor the potential impact 
  of other new standards and interpretations which may 
  be endorsed by the European Union and require adoption 
  by the Group in future accounting periods. 
 
 3. Critical accounting estimates and judgements 
 The preparation of the financial statements requires 
  the Group to make estimates, judgements and assumptions 
  that affect the reported amounts of assets, liabilities, 
  revenues and expenses and related disclosure of contingent 
  assets and liabilities. The Directors base their estimates 
  on historical experience and various other assumptions 
  that they believe are reasonable under the circumstances, 
  the results of which form the basis for making judgements 
  about the carrying value of assets and liabilities 
  that are not readily apparent from other sources. Actual 
  results may differ from these estimates under different 
  assumptions or conditions. 
 
 In the process of applying the Group's accounting policies, 
  management has made a number of judgements and estimations, 
  which have been consistent with those set out in the 
  Company's 2016 Annual Report and Accounts. 
 
 3.1. Revenue recognition 
 Revenue comprises the fair value of the consideration 
  received or receivable for the sale of goods and services 
  provided within the Group's ordinary activities, net 
  of discounts and sales taxes. It comprises user generated 
  revenues, product licences and development and integration 
  services. 
 
 User generated revenue relates to revenue generated 
  from all types of end-user activity and may take various 
  forms including per user fees, click fees, commissions 
  and revenue share, and includes associated managed 
  services. This revenue is recognised as the services 
  are performed. 
 
 Product licences are sales where the customer has the 
  ability to exploit the licenced functionality upon 
  delivery and include both certain term-based and perpetual 
  licences. These licence revenues are recognised as 
  a sale of a good once all of the below recognition 
  criteria have been met: 
 --                            the Group has transferred to the buyer the significant 
                               risks and rewards of ownership of the licence; 
 --                            the Group retains neither continuing managerial 
                                involvement to the degree usually associated 
                                with ownership nor effective control over the 
                                goods sold; 
 --                            the amount of revenue can be measured reliably; 
 --                            it is probable that the economic benefits associated 
                                with the transaction will flow to the Group; 
                                and 
 --                            the costs incurred or to be incurred in respect 
                                of the transaction can be measured reliably. 
 
 Revenue relating to development and integration services 
  contracted on a time and materials basis is recognised 
  as the services are performed. Revenue relating to 
  development and integration services identified as 
  a service contract, provided over a specified time 
  period, is recognised on a straight-line basis. Development 
  and integration service revenue delivered under a fixed 
  price contract is recognised on a percentage-of-completion 
  basis, based on the extent of work completed as a percentage 
  of overall estimated project cost, when the outcome 
  of a contract can be estimated reliably. Determining 
  whether a contract's outcome can be estimated reliably 
  requires management to exercise judgement and estimates 
  are continually reviewed as determined by events or 
  circumstances. Provision is made as soon as a loss 
  is foreseen. 
 
 Typically, a number of the above elements may be sold 
  together as a bundled contract. Revenue is recognised 
  separately for each component if it is considered to 
  represent a separable good or service and a fair value 
  can be reliably established. The Group may derive fair 
  value for its services based on a reliable cost estimate 
  plus an appropriate market-based margin. Where a product 
  licence is included within a bundled arrangement, the 
  residual value of the contract is ascribed to the product 
  licence after a fair value has been allocated to all 
  other components. 
 
 Amounts which meet the Group's revenue recognition 
  policy which have not yet been invoiced are accounted 
  for as accrued income whereas amounts invoiced which 
  have not met the Group's revenue recognition criteria 
  are deferred and are accounted for as deferred income 
  until such time as the revenue can be recognised. Management 
  makes an assessment of the certainty of any accrued 
  revenue amounts in determining how much revenue to 
  recognise. 
 
 3.2. Share-based payments 
 Judgement and estimation is required in determining 
  the fair value of shares at the date of award. The 
  fair value is estimated using valuation techniques 
  which take into account the award's term, the risk-free 
  interest rate and the expected volatility of the market 
  price of the Company's shares. Judgement and estimation 
  is also required to assess the number of options expected 
  to vest. 
 
 3.3. Going concern 
 The Directors have prepared projections of the Group's 
  anticipated future results based on their best estimate 
  of likely future developments within the business and 
  therefore believe that the assumption that the Group 
  is a going concern is valid. The financial information 
  has therefore been prepared on the 'going concern' 
  basis. 
 
 3.4. Development costs 
 The Group has capitalised internally generated intangible 
  assets as required in accordance with IAS 38. Management 
  have assessed expected contribution to be generated 
  from these assets and deemed that no adjustment is 
  required to the carrying value of the assets. The recoverable 
  amount of the assets has been determined based on value 
  in use calculations which require the use of estimates 
  and judgements. Management reviews the assets for impairment 
  on a regular basis. 
 
 3.5. Impairment of assets 
 IFRS requires management to undertake an annual test 
  for impairment of assets with indefinite lives, including 
  goodwill and, for assets with finite lives, to test 
  for impairment if events or changes in circumstances 
  indicate that the carrying amount of an asset may not 
  be recoverable. 
 
 Impairment testing is an area involving management 
  judgement, requiring assessment as to whether the carrying 
  value of assets can be supported by the fair value 
  less costs to sell or net present value of future cash 
  flows derived from such assets using cash flow projections 
  which have been discounted at an appropriate rate. 
  In calculating the net present value of the future 
  cash flows, certain assumptions are required to be 
  made in respect of highly uncertain matters including 
  management's expectations of growth and discount rates. 
  Changing the assumptions selected by management could 
  significantly affect the Group's impairment evaluation 
  and, hence, results. The Group's review includes the 
  key assumptions related to sensitivity in the cash 
  flow projections. 
 
 
 
 3.6. Deferred tax 
 Deferred tax assets and liabilities require management 
  judgement in determining the amounts to be recognised. 
  In particular, judgement is used when assessing the 
  extent to which deferred tax assets should be recognised, 
  with consideration given to the timing and level 
  of future taxable income. 
 
 3.7. Provisions 
 Management uses judgement to estimate the consideration 
  required to settle the present obligation at the 
  end of the reporting period, taking into account 
  the risks and uncertainties surrounding the obligation. 
  Judgement has been exercised with regard to the length 
  of period for which surplus properties remain vacant. 
  Judgement has been exercised in respect of the expected 
  settlement of other onerous contracts. 
 
 
 
 4. Segmental information 
 
 Reportable segment 
 Monitise's operating segments are reported based on the information reviewed by the 
  chief operating decision maker for the purposes of allocating resources and assessing 
  performance. The Board of Directors is the Group's chief operating decision maker. 
 
 The Board of Directors considers revenue, cost of sales, operating costs, exceptional 
 costs and EBITDA of the Group as a whole when assessing the performance of the business 
 and making decisions about the allocation of resources. In addition, the Board reviews 
 revenue split by business unit, products and geographies to assist with the allocation 
 of resources. During the prior financial year the Group changed the internal reporting 
 from one operating segment to six in order to more accurately reflect the way that 
 the business now operates and to provide greater insight and focus on each type of 
 activity. 
 
 
 
 Segment revenues and results 
 The following is an analysis of the Group's revenue and results by reportable segment 
  for the period ended 31 December 2016: 
 
 
                          FINkit    Europe   Americas        Big       MEA   Content   Unallocated      Total 
                                                         Radical 
                         GBP'000   GBP'000    GBP'000    GBP'000   GBP'000   GBP'000       GBP'000    GBP'000 
 -------------------    --------  --------  ---------  ---------  --------  --------  ------------  --------- 
 External 
  revenue                      -     9,780      6,312      1,876     3,161     7,029             -     28,158 
 Inter-segment 
  revenue                      -        95          -         87       551         -         (733)          - 
--------------------    --------  --------  ---------  ---------  --------  --------  ------------  --------- 
 Total revenue                 -     9,875      6,312      1,963     3,712     7,029         (733)     28,158 
--------------------    --------  --------  ---------  ---------  --------  --------  ------------  --------- 
 
 EBITDA                  (2,693)     1,314        107      (802)       275     3,193       (1,045)        349 
 Depreciation, 
  amortisation 
  and impairments                                                                                    (10,854) 
 Other exceptional 
 items                                                                                                  7,381 
 Share of                                                                                                   - 
  loss of joint 
  ventures 
 Share-based 
  payments                                                                                            (4,440) 
 Net finance 
  income                                                                                                   96 
--------------------    --------  --------  ---------  ---------  --------  --------  ------------  --------- 
 Loss before 
  income tax                                                                                          (7,468) 
--------------------    --------  --------  ---------  ---------  --------  --------  ------------  --------- 
 
 
 
 The following is an analysis of the Group's revenue 
  and results by reportable segment for the period 
  ended 31 December 2015: 
                          FINkit    Europe   Americas        Big       MEA   Content   Unallocated       Total 
                                                         Radical 
                         GBP'000   GBP'000    GBP'000    GBP'000   GBP'000   GBP'000       GBP'000     GBP'000 
 -------------------    --------  --------  ---------  ---------  --------  --------  ------------  ---------- 
 External 
  revenue                      -    15,210      9,962      1,465     2,188     4,534             -      33,359 
 Inter-segment 
  revenue                      -       358          -      1,051     2,104       160       (3,673)           - 
--------------------    --------  --------  ---------  ---------  --------  --------  ------------  ---------- 
 Total revenue                 -    15,568      9,962      2,516     4,292     4,694       (3,673)      33,359 
--------------------    --------  --------  ---------  ---------  --------  --------  ------------  ---------- 
 
 EBITDA                  (1,322)   (7,091)    (3,429)      (873)       988       933       (9,400)    (20,194) 
 Depreciation, 
  amortisation 
  and impairments                                                                                    (179,986) 
 Other exceptional 
 items                                                                                                   (980) 
 Share of 
  loss of joint 
  ventures                                                                                                (29) 
 Share-based 
  payments                                                                                            (10,407) 
 Net finance 
  income                                                                                                 1,055 
--------------------    --------  --------  ---------  ---------  --------  --------  ------------  ---------- 
 Loss before 
  income tax                                                                                         (210,541) 
--------------------    --------  --------  ---------  ---------  --------  --------  ------------  ---------- 
 
 
 
 
   The following is an analysis of the Group's revenue 
   and results by reportable segment for the period 
   ended 30 June 2016: 
                          FINkit    Europe   Americas        Big       MEA   Content   Unallocated       Total 
                                                         Radical 
                         GBP'000   GBP'000    GBP'000    GBP'000   GBP'000   GBP'000       GBP'000     GBP'000 
 -------------------    --------  --------  ---------  ---------  --------  --------  ------------  ---------- 
 External 
  revenue                    463    29,001     19,088      4,218     5,160     9,635             -      67,565 
 Inter-segment 
  revenue                      -     1,340          -      1,504     2,916       307       (6,067)           - 
--------------------    --------  --------  ---------  ---------  --------  --------  ------------  ---------- 
 Total revenue               463    30,341     19,088      5,722     8,076     9,942       (6,067)      67,565 
--------------------    --------  --------  ---------  ---------  --------  --------  ------------  ---------- 
 
 EBITDA                  (3,827)   (4,870)    (3,093)    (1,221)     1,050     2,745      (10,407)    (19,623) 
 Depreciation, 
  amortisation 
  and impairments                                                                                    (205,216) 
 Other exceptional 
 items                                                                                                 (3,492) 
 Share of 
  loss of joint 
  ventures                                                                                                (58) 
 Share-based 
  payments                                                                                            (16,468) 
 Net finance 
  income                                                                                                 1,775 
--------------------    --------  --------  ---------  ---------  --------  --------  ------------  ---------- 
 Loss before 
  income tax                                                                                         (243,082) 
--------------------    --------  --------  ---------  ---------  --------  --------  ------------  ---------- 
 
 
 
 5. Operating loss 
 This is stated after charging/(crediting): 
                                                             6 months    6 months          Year 
                                                                ended       ended         ended 
                                                                   31          31            30 
                                                             December    December          June 
                                                                 2016        2015          2016 
                                            Note              GBP'000     GBP'000       GBP'000 
-----------------------------------------  -------------  -----------  ----------  ------------ 
 Depreciation                                                     866       2,784         2,814 
 Impairment of property, plant 
  and equipment                                                     -       2,630         3,268 
 Amortisation                               8                   9,988       7,274        25,465 
 Impairment of intangible assets            8                       -     166,798       172,728 
 Impairment of investment in 
  joint venture                                                     -         500           941 
 Share-based payments                                           4,440      10,407        16,468 
 Exceptional items                          6                 (7,381)         980         3,492 
-----------------------------------------  -------------  -----------  ----------  ------------ 
 
 6. EBITDA 
 EBITDA is defined as operating loss before exceptional 
  items, depreciation, amortisation, impairments and share-based 
  payments charge. 
 
 Exceptional items comprise:                                 6 months    6 months          Year 
                                                                ended       ended         ended 
                                                                   31          31       30 June 
                                                             December    December 
                                                                 2016        2015          2016 
                                                              GBP'000     GBP'000       GBP'000 
-----------------------------------------  -------------  -----------  ----------  ------------ 
 Exceptional income                                                 -     (5,000)       (6,874) 
 Onerous contracts                                            (7,212)     (2,382)       (3,190) 
 Surplus property costs                                         (986)       2,312         4,382 
 Restructuring costs                                                -       5,964         8,734 
 Strategic Review and corporate 
  development costs                                               817          86           440 
-----------------------------------------  -------------  -----------  ----------  ------------ 
 Total exceptional items                                      (7,381)         980         3,492 
-----------------------------------------  -------------  -----------  ----------  ------------ 
 
 Onerous contracts relate to those contracts under which 
  the unavoidable costs of meeting the obligations under 
  the contract exceed the economic benefit expected to 
  be received under it. In particular, obligations associated 
  with a number of contracts with a third party IT and 
  business services provider were provided in prior periods. 
  The credit for onerous contracts in the current period 
  reflects the settlement of the remainder of these obligations 
  at amounts less than previously provided. 
 
 Restructuring costs are associated with a number of 
  restructuring activities undertaken and principally 
  relate to redundancy and termination costs. There were 
  no restructuring costs incurred in the period beyond 
  what had already been provided for in the prior year. 
  In addition, the associated property restructuring costs 
  in the prior year resulted in a charge for several onerous 
  property lease contracts. The credit for surplus property 
  costs in the period reflects the successful assignment 
  of the majority of the remaining surplus properties. 
 
 Strategic Review and corporate development costs related 
  primarily to professional advisor fees incurred in respect 
  of a number of corporate development projects. 
 
 7. Loss per share 
 Basic and diluted 
 Basic loss per share is calculated by dividing the loss 
  attributable to owners of the parent by the weighted 
  average number of Ordinary shares in issue during the 
  year. As the Group is loss-making, any share options 
  in issue are considered to be 'anti-dilutive'. As such, 
  there is no separate calculation for diluted loss per 
  share. 
 
 Reconciliations of the loss and weighted average number 
  of shares used in the calculation are set out below: 
                                                             6 months    6 months          Year 
                                                                ended       ended         ended 
                                                                   31          31            30 
                                                             December    December          June 
                                                                 2016        2015          2016 
-----------------------------------------  -------------  -----------  ----------  ------------ 
 Loss for the period/year (GBP'000)                           (7,003)   (205,408)     (233,371) 
 Weighted average number of shares 
  in issue ('000)                                           2,294,308   2,199,414     2,215,733 
-----------------------------------------  -------------  -----------  ----------  ------------ 
 Basic and diluted loss per share 
  (pence)                                                      (0.3p)      (9.3p)       (10.5p) 
-----------------------------------------  -------------  -----------  ----------  ------------ 
 8. Intangible 
 assets 
                                                                        Purchased 
                                            Intellectual                      and   Capitalised 
                                                                         acquired 
                                 Customer       property     Acquired    software   development 
                     Goodwill   contracts         rights   technology    licences         costs       Total 
                      GBP'000     GBP'000        GBP'000      GBP'000     GBP'000       GBP'000     GBP'000 
-----------------  ----------  ----------  -------------  -----------  ----------  ------------  ---------- 
 For the period 
 ended 31 
 December 
 2015: 
 Cost: 
 As at 1 July 
  2015                204,930      46,167            277       27,077      17,883        66,173     362,507 
 Exchange 
  differences           7,989       1,478              -          649           1           570      10,687 
 Additions                  -           -              -            -       1,695         4,966       6,661 
 Disposals                  -           -           (13)            -     (1,517)             -     (1,530) 
-----------------  ----------  ----------  -------------  -----------  ----------  ------------  ---------- 
 As at 31 
  December 
  2015                212,919      47,645            264       27,726      18,062        71,709     378,325 
-----------------  ----------  ----------  -------------  -----------  ----------  ------------  ---------- 
 
 Accumulated 
 amortisation 
 and impairment: 
 As at 1 July 
  2015                 41,770      16,819            252       15,553      15,347        56,493     146,234 
 Exchange 
  differences           1,066         747              -          458          11           141       2,423 
 Charge                     -       2,906              8        2,082       1,282           996       7,274 
 Impairment           157,060       7,464              -        2,200          74             -     166,798 
 Disposals                  -           -           (13)            -     (1,517)             -     (1,530) 
-----------------  ----------  ----------  -------------  -----------  ----------  ------------  ---------- 
 As at 31 
  December 
  2015                199,896      27,936            247       20,293      15,197        57,630     321,199 
-----------------  ----------  ----------  -------------  -----------  ----------  ------------  ---------- 
 
 Net book value: 
 As at 1 July 
  2015                163,160      29,348             25       11,524       2,536         9,680     216,273 
-----------------  ----------  ----------  -------------  -----------  ----------  ------------  ---------- 
 As at 31 
  December 
  2015                 13,023      19,709             17        7,433       2,865        14,079      57,126 
-----------------  ----------  ----------  -------------  -----------  ----------  ------------  ---------- 
 
 For the period 
 ended 30 June 
 2016: 
 Cost: 
 As at 1 July 
  2015                204,930      46,167            277       27,077      17,883        66,173     362,507 
 Exchange 
  differences          25,226       5,743              -        2,352         305         1,257      34,883 
 Additions                  -           -              -            -       1,988         6,333       8,321 
 Disposals          (183,230)     (8,595)          (277)      (6,422)    (11,525)       (4,262)   (214,311) 
-----------------  ----------  ----------  -------------  -----------  ----------  ------------  ---------- 
 As at 30 June 
  2016                 46,926      43,315              -       23,007       8,651        69,501     191,400 
-----------------  ----------  ----------  -------------  -----------  ----------  ------------  ---------- 
 
 Accumulated 
 amortisation 
 and impairment: 
 As at 1 July 
  2015                 41,770      16,819            252       15,553      15,347        56,493     146,234 
 Exchange 
  differences          18,208       4,096              -        1,963         335           527      25,129 
 Charge                     -      15,162             15        6,017       2,253         2,018      25,465 
 Impairment           162,738       7,464             10        2,200         316             -     172,728 
 Disposals          (183,230)     (8,595)          (277)      (6,422)    (11,525)       (4,262)   (214,311) 
-----------------  ----------  ----------  -------------  -----------  ----------  ------------  ---------- 
 As at 30 June 
  2016                 39,486      34,946              -       19,311       6,726        54,776     155,245 
-----------------  ----------  ----------  -------------  -----------  ----------  ------------  ---------- 
 
 
 
 
 Net book value: 
 As at 1 July 2015            163,160     29,348   25     11,524   2,536    9,680    216,273 
--------------------------  ---------  ---------  ---  ---------  ------  -------  --------- 
 As at 30 June 2016             7,440      8,369    -      3,696   1,925   14,725     36,155 
--------------------------  ---------  ---------  ---  ---------  ------  -------  --------- 
 
 For the period 
  ended 31 December 
  2016: 
 Cost: 
 As at 1 July 2016             46,926     43,315    -     23,007   8,651   69,501    191,400 
 Exchange differences           (140)      (996)    -      (377)   (532)      634    (1,411) 
 Additions                          -          -    -          -     352    1,967      2,319 
 Disposals                   (30,647)   (25,853)    -   (13,855)      83        -   (70,272) 
--------------------------  ---------  ---------  ---  ---------  ------  -------  --------- 
 As at 31 December 
  2016                         16,139     16,466    -      8,775   8,554   72,102    122,036 
--------------------------  ---------  ---------  ---  ---------  ------  -------  --------- 
 
 Accumulated amortisation 
  and impairment: 
 As at 1 July 2016             39,486     34,946    -     19,311   6,726   54,776    155,245 
 Exchange differences           (139)      (508)    -      (348)   (620)      427    (1,188) 
 Charge                             -      3,342    -      2,379   1,025    3,242      9,988 
 Impairment                         -          -    -          -       -        -          - 
 Disposals                   (30,647)   (25,853)    -   (13,855)      83        -   (70,272) 
--------------------------  ---------  ---------  ---  ---------  ------  -------  --------- 
 As at 31 December 
  2016                          8,700     11,927    -      7,487   7,214   58,445     93,773 
--------------------------  ---------  ---------  ---  ---------  ------  -------  --------- 
 
 Net book value: 
 As at 1 July 2016              7,440      8,369    -      3,696   1,925   14,725     36,155 
--------------------------  ---------  ---------  ---  ---------  ------  -------  --------- 
 As at 31 December 
  2016                          7,439      4,539    -      1,288   1,340   13,657     28,263 
--------------------------  ---------  ---------  ---  ---------  ------  -------  --------- 
 
 
 
 9. Net funds 
                              31 December   31 December        30 
                                                             June 
                                     2016          2015      2016 
                                  GBP'000       GBP'000   GBP'000 
--------------------------   ------------  ------------  -------- 
 Cash at bank and in hand          27,325        53,367    42,089 
 Finance leases                   (1,173)       (2,648)   (1,809) 
---------------------------  ------------  ------------  -------- 
 Net funds                         26,152        50,719    40,280 
---------------------------  ------------  ------------  -------- 
 
 
 
 10. Provisions 
                                                                                Onerous 
                                                          Re-organisation     contracts     Total 
 Group                                                            GBP'000       GBP'000   GBP'000 
---------------------------------------------            ----------------  ------------  -------- 
 As at 1 July 2016                                                  2,204        16,676    18,880 
 Additional provisions 
  in the year                                                          36           246       282 
 Release of provision                                                (67)       (9,070)   (9,137) 
 Utilisation of provision                                           (588)       (5,878)   (6,466) 
 Exchange differences                                                  60            78       138 
------------------------------------------------         ----------------  ------------  -------- 
 As at 31 December 
  2016                                                              1,645         2,052     3,697 
------------------------------------------------         ----------------  ------------  -------- 
 
                                                              31 December   31 December   30 June 
                                                                     2016          2015      2016 
                                                                  GBP'000       GBP'000   GBP'000 
 --------------------------------------------            ----------------  ------------  -------- 
 Due within one 
  year                                                              1,227        16,341    10,864 
 Due after one year                                                 2,470         8,002     8,016 
------------------------------------------------         ----------------  ------------  -------- 
 
 Onerous contracts include provisions for surplus properties 
  as a result of the reorganisations undertaken and 
  obligations associated with a number of contracts 
  with a third party IT and business services provider. 
  Additionally, provision has been made for the ongoing 
  costs of closing the Group's Far East investments 
  and the finalisation of the restructuring activities. 
 
 The release of provision related to both the successful 
  renegotiation of the remaining onerous contracts with 
  a third party IT and business services provider and 
  also the successful assignment of the majority of 
  the remaining surplus properties. 
 
 
 
 11. Financial liabilities 
                                                 31 December    31 December               30 June 
                                                        2016           2015                  2016 
                                                     GBP'000        GBP'000               GBP'000 
--------------------------------------------  --------------  -------------  -------------------- 
 Due within one year 
 Finance leases                                          613          1,023                 1,002 
--------------------------------------------  --------------  -------------  -------------------- 
 Financial liabilities due 
  within one year                                        613          1,023                 1,002 
--------------------------------------------  --------------  -------------  -------------------- 
 Due after one year 
 Finance leases                                          560          1,625                   807 
--------------------------------------------  --------------  -------------  -------------------- 
 Financial liabilities due 
  after one year                                         560          1,625                   807 
--------------------------------------------  --------------  -------------  -------------------- 
 Total financial liabilities                           1,173          2,648                 1,809 
--------------------------------------------  --------------  -------------  -------------------- 
 
 12. Ordinary shares, share 
  premium and other reserves 
 Allotted and fully paid GBP0.01 
  nominal value shares 
                                                                   Ordinary               Share 
                                                      Number         shares             premium 
                                                   of shares        GBP'000             GBP'000 
--------------------------------------------  --------------  -------------  ------------------ 
 As at 1 July 2015                             2,168,231,436         21,682             383,721 
 Issue of new shares                              79,091,540            791                   - 
 Exercise of share options 
  and warrants                                     4,620,037             46                   - 
--------------------------------------------  --------------  -------------  ------------------ 
 As at 1 July 2016                             2,251,943,013         22,519             383,721 
 Issue of new shares                              43,770,351            438                   - 
 Exercise of share options 
  and warrants                                       428,266              4                   4 
--------------------------------------------  --------------  -------------  ------------------ 
 As at 31 December 2016                        2,296,141,630         22,961             383,725 
--------------------------------------------  --------------  -------------  ------------------ 
 
 As at 1 July 2015                             2,168,231,436         21,682             383,721 
 Issue of new shares                              35,629,905            357                   - 
 Exercise of share options 
  and warrants                                       526,371              5                   - 
--------------------------------------------  --------------  -------------  ------------------ 
 As at 31 December 2015                        2,204,387,712         22,044             383,721 
--------------------------------------------  --------------  -------------  ------------------ 
 
 
 Reconciliation 
  of shares 
  issued 
                                                    Ordinary 
                        Number of   Ordinary          shares          Share    Merger 
                                                       to be 
                           shares     shares          issued        premium   reserve     Total 
                                     GBP'000         GBP'000        GBP'000   GBP'000   GBP'000 
-----------------  --------------  ---------  --------------  -------------  --------  -------- 
 As at 1 July 
  2015              2,168,231,436     21,682           2,511        383,721   228,672   636,586 
 Employee 
  share-based 
  payment 
  exercises             4,620,037         46               -              -         -        46 
 Issue of shares 
  relating to 
  prior year 
  business 
  combinations         79,091,540        791               -              -     9,511    10,302 
-----------------  --------------  ---------  --------------  -------------  --------  -------- 
 As at 1 July 
  2016              2,251,943,013     22,519           2,511        383,721   238,183   646,934 
 Employee 
  share-based 
  payment 
  exercises               428,266          4               -              4         -         8 
 Issue of shares 
  relating to 
  prior year 
  business 
  combinations         43,770,351        438         (2,511)              -     2,466       393 
-----------------  --------------  ---------  --------------  -------------  --------  -------- 
 As at 31 
  December 
  2016              2,296,141,630     22,961               -        383,725   240,649   647,335 
-----------------  --------------  ---------  --------------  -------------  --------  -------- 
 
 
 
 
 13. Reconciliation of net 
  loss to net cash used in operating 
  activities 
                                            6 months      6 months        Year 
                                               ended         ended       ended 
                                         31 December   31 December          30 
                                                                          June 
                                                2016          2015        2016 
                                             GBP'000       GBP'000     GBP'000 
-------------------------------------   ------------  ------------  ---------- 
 Loss before income tax                      (7,468)     (210,541)   (243,082) 
 Adjustments for: 
 Depreciation and impairments 
  to property, plant and equipment               866         5,414       6,082 
 Amortisation and impairments 
  to intangible assets                         9,988       174,072     198,193 
 Impairment to joint venture                       -           500         941 
 Share-based payments                          4,440        10,407      16,468 
 Profit on disposal of property, 
  plant and equipment                              -             -        (35) 
 Finance costs - net                            (96)       (1,055)     (1,775) 
 Exceptional items (net)                     (7,381)           980       3,492 
 Share of post-tax loss of 
  joint ventures                                   -            29          58 
--------------------------------------  ------------  ------------  ---------- 
 Operating cash flows before 
  movements in working capital                   349      (20,194)    (19,658) 
 (Increase)/decrease in receivables            (710)         4,411      15,292 
 Decrease in payables                        (3,927)       (5,216)    (19,100) 
 (Decrease)/increase in provisions             (444)       (1,322)       1,597 
--------------------------------------  ------------  ------------  ---------- 
 Cash used in operations                     (4,732)      (22,321)    (21,869) 
--------------------------------------  ------------  ------------  ---------- 
 
 
 
 14. Commitments, contingencies and guarantees 
 Legal contingencies 
 No member of the Group is or has been involved in 
  any governmental, legal or arbitration proceedings 
  and the Directors are not aware of any such proceedings 
  pending or threatened by or against the Group during 
  the 12 months preceding the date of these financial 
  statements which may have or have had, in the recent 
  past, a significant effect on the financial position 
  or profitability of the Group. 
 
 Mobile VPT Limited has issued a UK patent infringement 
  claim against Monitise International Limited (formerly 
  known as Monitise Limited) and other related parties. 
  Following advice from leading counsel, the Directors 
  believe that Monitise's business activities in the 
  UK do not infringe any valid claim of Mobile VPT's 
  patent and that the Mobile VPT patent may be invalid. 
  Monitise continues to monitor the status of the proceedings 
  since they were stayed in October 2007 but to date, 
  and in light of the advice received from leading 
  counsel, no provision has been reflected in the financial 
  statements. 
 
 Guarantees 
 There are a number of operational and financial guarantees 
  given by the Company and certain subsidiary companies 
  in each case on behalf of other subsidiary entities. 
 
 The Company had no other commitments or contingencies 
  at the end of the period. 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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