Monitise reports on tough turnaround year

Financial services digital technology company Monitise announced its preliminary results for the financial year to 30 June on Thursday, which it said confirmed a “substantial improvement” in operating figures in the second half.

The AIM-traded firm said its new business unit, FINKit3, which enables banks and financial services organisations to “transform” their digital services, launched during the year generating initial revenues in the second half of FY 2016, and received a positive response from current and potential clients and partners.

Full year revenue was £67.6m, a decline of 24.7% compared to the prior year as anticipated but stable half-on-half and in line with previous guidance.

Monitise reported half-year EBITDA profitability of £0.6m in the second half of the year, in line with previous guidance, though the figure was a £19.6m loss in the full year.

The company’s cash flow stabilised with positive cash from operations in the second half, and cash usage was down 84% compared to the same period in FY 2015.

“In my first year as CEO we have made substantial progress in making Monitise a more stable and simpler business which is well positioned to achieve profitability,” said CEO Lee Cameron.

“At the EBITDA level we recorded a small profit in the second half of the year.

“Our restructuring has halved operating costs in the second half of the year and reduced headcount by 41% compared to a year ago while maintaining our high client service levels and launching our FINKit digital banking and financial services product.”

Monitise chairman Peter Ayliffe said the year saw an “unprecedented amount” of change throughout both the business and the board.

“However, I am pleased to report that the outcome is a business which is much better managed, and much more appropriately structured for successful longer-term profitable growth based on its business unit focus, FINKit platform and associated capabilities.”