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  • BY: Andrew Hore |
  • POSTED: 13/04/2008 |

Mobile banking technology developer Monitise has signed up Alliance & Leicester Commercial Bank. 

It already had Royal Bank of Scotland, Nat West, HSBC, First Direct and Ulster Bank as customers in the UK. As well as banking other services include ticketing, retailing and transport. Monitise has just started trading in the US through its joint venture with Metavante. It gets an annual licence fee plus a 5% transaction royalty.

Monitise has annualised cash costs of £15m and they could increase as it moves into new territories. So far revenues are modest. They were £400,000 in the six months to December 2007. There was cash of £15.4m in the balance sheet at that time.

Revenues are growing but it will take some time for them to build up. There were 110,000 customers signed up by early in 2008. Full year revenues are expected to be £1.8m in 2007-08 - downgraded by £600,000 at the time of the interims - and rise to £8.6m in 2008-09. That still leaves it losing £6.9m in 2008-09. The cash in the bank won’t last forever and that cash outflow needs to be stemmed.

At 6.875p, Monitise is valued at £17.5m.

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