News blog
Zamano
- BY: Andrew Hore |
- POSTED: 25/03/2009 |
Mobile services and content provider Zamano improved its 2008 figures but the second half was much tougher.
Revenues grew from €24.7m to €41.4m but most of that growth came in the first half of 2008. Revenue growth was hampered by weak sterling. The UK is the biggest revenue generator and nearly 90% of costs are in Euros. Business to business revenues fell because the exchange rate while direct to consumer revenues more than doubled.
There was a €5m goodwill impairment charge and a €2.44m amortisation charge in 2008. Excluding the charge and amortisation, profits improved from €3.18m to €3.81m.
Strong cash generation kept net debt down to €7.17m even though €7.3m was paid in deferred acquisition consideration during the year. There is a further €1.37m of deferred consideration due this year - although this is still being negotiated.
Zamano is market leader in Ireland and in the top five in the UK. The US business is building up and made a contribution to profit.
Zamano ditched two clients who did not follow its code of practice. This has cut calls to its customer care centre by more than one-third.
Zamano launched an alternative payments service called PayforIT last summer. This will be launched in Ireland later in 2009. Zamano started up activities in Spain at the end of 2008 and should start trading in South Africa in April 2009.
Management believes that there may be some distressed assets available to buy later in the year.
At the moment it appears that revenues in Euro terms will be lower this year and profits are likely to be lower as well.
At 11.5p a share, Zamano is valued at £9.32m.
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