Monitise PLC Trading Update (5162M)
January 21 2016 - 2:00AM
UK Regulatory
TIDMMONI
RNS Number : 5162M
Monitise PLC
21 January 2016
Monitise plc
Trading Update
LONDON -- 21 January 2016 -- Monitise plc (LSE: MONI)
("Monitise" or the "Company") announces an unaudited trading update
for the six months ended 31 December 2015.
Financial Update and Outlook
-- H1 FY 2016 revenue is expected to be approximately GBP33m,
with revenue in the second half anticipated to be broadly
similar
-- Existing businesses generating positive EBITDA going forward
-- Targeted investment in developing our new cloud-based offering, FINkit(R)
-- Decisive action on costs has been taken and a further
material reduction in total costs is expected in H2 FY 2016
o Total costs of GBP53m in H1 FY 2016 projected to reduce by
approximately GBP3m per month in second half
-- Monitise is projecting H2 FY 2016 to be EBITDA positive
following H1 FY 2016 EBITDA loss of approximately GBP20m
-- Whilst timing of cashflows for onerous contracts and
restructuring adversely impacts cash balances, which are now
expected to fall below previous guidance of a GBP45m minimum, gross
cash at 31 December 2015 of GBP53m and prospective EBITDA positive
trading for H2 FY 2016 means the business is sufficiently well
funded to meet its future plans
Accounting Adjustments
-- Following a reassessment of the Company's strategic plan a
further review of intangible assets has been undertaken and it is
anticipated that a non-cash impairment charge in relation to these
non-Cloud assets of GBP160-170m will be made
-- During the period exceptional costs of GBP6m have been
recognised as part of the business restructuring. An offsetting
exceptional credit of GBP5m has been recognised following a
restructuring of customer contracts
Operational Update
-- Our customer relationships have remained strong during this
period, our pipeline is robust and continues to develop, we are
well progressed with a number of our existing and prospective
customers who are interested in utilising our cloud-based offering
through FINkit(R), and we have successfully proven the capabilities
of FINkit(R) through a customer proof of concept
-- Tighter cost discipline will be maintained throughout FY 2016
and beyond whilst we continue to invest in our cloud business,
making sure such investment is proportionate to the size and timing
of customer contracts
-- Ongoing cost disciplines have improved transparency and
accountability enabling each business unit to have full ownership
of their respective P&Ls
-- We continue to evaluate all assets within the Monitise group
to ensure they remain core to our proposition
The Company expects to publish its 2016 interim results on 12
February 2016.
Monitise CEO Lee Cameron said: "Since I became CEO in September,
I have focused on stabilising and restructuring the business and
ensuring that we continue to develop our cloud proposition. The
combination of a significantly reduced cost base, tight management
of our existing business units and increasing interest for our
cloud capability give the Board confidence that Monitise will
achieve EBITDA breakeven in H2 FY 2016."
About Monitise
Monitise plc (LSE: MONI) is a digital technology company
creating new ways to connect, interact and transact. Our platforms,
products and ideas lead to smarter, better experiences that help
financial services companies and brands across many other sectors
forge closer relationships with their customers. Through our
cloud-based approach, design consultancy and content business, we
make everyday actions easier for millions of people. Find out more
at www.monitise.com.
FINkit(R) is designed specifically for financial institutions.
It lets customers build and run secure and compliant products and
services faster than ever. FINkit(R) is a unique combination of a
cloud-based environment, pre-built API-based financial components,
and use of the latest secure and agile continuous development
methodologies.
For further information:
Monitise plc
Lee Cameron, Chief Executive Officer Tel: +44(0)20 3657 0331
Canaccord Genuity (NOMAD)
Simon Bridges, Cameron Duncan, Emma Gabriel Tel: +44(0)20 7523
8000
Brunswick
Jonathan Glass, Jon Drage Tel: +44(0)20 7404 5959
This information is provided by RNS
The company news service from the London Stock Exchange
END
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