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Zamano’s strong first half sales help offset higher investments

Published: 07:32 25 Aug 2016 BST

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A better performance is anticipated for the second half

Zamano Plc (LON:ZMNO) revealed an 80.2% rise in first half revenues which helped offset the bottom line impacts of a programme of new investment.

Sales amounted to €18.748mln for the six months to June 30, compared to €10.40mln for the same period of 2015. Gross profit was down 9.7% to €2.33mln, while at €1.196mln adjusted earnings lowered by 13% compared to the first half of 2015.

Pre-tax profit was reported at €0.79mln, down 30.7% compared to €1.146mln last year.

The company ended June with €7.43mln of cash, some 36% more than at the same point of 2015.

"While the overall trading outcome for the business was somewhat mixed during H1 2016, we can report a significant increase in both sales performance and cash generation,” said Colin Tucker, Zamano acting chairman.

“This was offset by falling margins due to increased investment in advertising, a changing sales mix in the UK and some foreign exchange headwinds.”

Tucker highlighted that Zamano anticipates a better performance in the second half of 2016 thanks in part to higher advertising spend and expectations for further improvements to the sales performance.

He also told investors that the company continued to seek strategic acquisitions, with “significant progress” expected in the second half of 2016.

"With an active focus on M & A activity, we believe that zamano can achieve one of its core strategic objectives by pursuing higher value added business which we expect would open avenues for growth in the coming twelve months,” he added.

“Our ambition to achieve this strategic repositioning will run in tandem with adapting and optimising our existing business lines.”

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