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Zamano nudges higher as it sees improvements ahead

Published: 16:32 25 Nov 2016 GMT

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Zamano specialises in supplying smartphone content

Shares in smartphone content supplier Zamano Plc (LON:ZMNO) nudged higher as it unveiled a series of cost saving measures, which will allow it to continue to operate profitably.

The  firm will stop all ongoing M&A discussions and focus on maximising cashflow from the existing business in the UK, Irish and International markets, it added.

In September, the group, which has  around €7.3mln in the bank, warned operating profits would be hit by regulatory changes made to the way mobile operators charge users for content.

The firm had known about the Payforit initiative but its impact would only become clear once it was fully in place.

Payforit was introduced at the beginning of November across all of Zamano's UK business lines, and as expected, there has been a "significant reduction in new business in the UK market".

"We believe however, that as the market starts to adapt to the new regulatory regime, Zamano may be able to gradually improve the current run rate being experienced by its UK business," the company said.

Directors Pat Landy and Ed Murphy have decided to step down from the board from today (Nov 25) and there is no plan to replace them in the short term.

A redundancy programme will see seven staff made redundant out of 18.

"These redundancies will be across all divisions and will reduce payroll and related costs by approximately €330,000 on an annualised basis," it said.

Shares added 4.35% to 6p each.

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