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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Telecoms

Costly overhaul sees Monitise losses widen to £240mln

"In my first year as chief executive we have made substantial progress in making Monitise a more stable and simpler business which is well positioned to achieve profitability.”

Digital payments group Monitise Plc (LON:MONI) saw annual losses hit £243mln after a costly bout of restructuring.

The beleaguered group saw pre-tax losses mount to £243.1mln from £227.4mln a year ago. Group sales also fell to £67.6mln from £89.7mln.

In the period, it axed over 40% of its workforce in the period, cutting back to 470 workers, costing £3.3mln. Exiting a number of dead-weight contracts cost a further £17.1mln.

Its European arm saw licence revenues drop to £1mln, down from £9.9mln last year, which it blamed on the completion of a string of large loss-making development projects.

Newly appointed Monitise chief Lee Cameron defended the costs, saying it had slashed operating costs in half in the second part of the year.

"In my first year as chief executive we have made substantial progress in making Monitise a more stable and simpler business which is well positioned to achieve profitability,” added Cameron.

At the start of 2014, the group’s valuation topped £1bln, but following a number of revenues warnings and the departure of several senior staff members, it has left it with a market cap of around £57mln.

Share rose 5.5% to 2.66p.

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