Monitise to break even by the second half, despite restructuring costs hurting the bottom line in H1

 
Catherine Neilan
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It's been a turbulent few months for Monitise

Digital payments group Monitise has said cash flow will drop below guided levels as the cost of restructuring bites - but claims it will be turning a profit by the second half of the current financial year.

In the six months to 31 December, the company said it expected revenues to come in at around £33m, while second half revenues would be broadly in line with expectations.

It made an EBITDA loss of around £20m as the company notched up total costs of £53m in the first half, but said this would drop by around £3m per month in the second half.

As a result, it claims the troubled firm, which has lost a number of its top team in the last year, would be "generating positive EBITDA going forward", starting with the second half of its 2016 financial year.

"The business is sufficiently well funded to meet its future plans," the company said. "Our customer relationships have remained strong during this period, our pipeline is robust and continues to develop, we are well progressed with a number of our existing and prospective customers who are interested in utilising our cloud-based offering through Finkit, and we have successfully proven the capabilities of Finkit through a customer proof of concept."

Monitise chief executive Lee Cameron added: "Since I became CEO in September, I have focused on stabilising and restructuring the business and ensuring that we continue to develop our cloud proposition.

"The combination of a significantly reduced cost base, tight management of our existing business units and increasing interest for our cloud capability give the board confidence that Monitise will achieve EBITDA break even in H2 FY 2016."

The company expects to publish its 2016 interim results on 12 February.

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