Interim Results for six month period ended 30 June 2014
Highlights H1 2014
· Sales of €8.718M (H1 2013 €9.019M) which was significantly ahead of the H2 2013 outcome of €7.015M.
· Gross profit for the period of €2.380M (H1 2013 €2.528M) reflected a healthy gross margin of 27.3% (H1 2013 28.0%). Although down slightly compared to the corresponding period last year, the small decline in margin is due to the alteration by zamano of its business mix in the UK.
· EBITDA of €1.218M (H1 2013 €1.421M) which is 2.5% ahead of the H2 2013 EBITDA of €1.187M.
· zamano has benefited from lower finance/interest costs during the first half of this year and as a result, both profit before tax of €0.964M (H1 2013; €0.984M) and profit after tax of €0.873M (H1 2013; €0.858M) effectively matched those recorded in H1 of the previous year.
· zamano continued to strengthen its balance sheet position, with cash at 30 June 2014 at €2.973M (€2.262M at 30 June 2013). The cash balances at 30 June 2014 adjusted for the increase in trade debtors are €3.758M, which comprise of balances due from mobile network operators.
Ross Conlon CEO of zamano commented: “In spite of a challenging trading environment in our core product areas, zamano delivered a satisfactory set of results for the period ended 30 June 2014. These results have been achieved on the back of revenue diversification in the UK, good sales growth in Australia, tight cost control and a strong emphasis on the generation of cash.
The Group continues to invest in product development and is firmly focussed on identifying acquisition, investment and joint venture opportunities in the UK and Ireland in order to accelerate the growth of the business. zamano has significant expertise in data analytics, mobile billing/payments and mobile marketing and is targeting its acquisition search where it can add substantial value to any business acquired.”
In 2013, growth was achieved in EBITDA, operating profit, adjusted profit before tax and, adjusted profit after tax. While revenues and, consequently, gross profits were down, tight cost controls and operating efficiencies ensured that the Group achieved an increase in earnings for the year. The UK and Irish web and mobile marketing businesses underpinned the financial performance of the Group in 2013. While revenues were down to €16.034 million from €19.207 million in 2012, a fall of 16.5%, UK revenues at €9.698 million exceeded the 2012 figure of €9.426 million. Irish revenues at €4.133 million were, as expected, down on the 2012 figure of €7.205 million, but were creditable given the demise of the Irish web and mobile subscription business during the second half of 2012.
Group gross profit was a respectable €4.976 million. The gross profit margin for the year at 31% was three percentage points greater than 2012, while EBITDA at €2.608 million was 4.1% up on the corresponding figure of €2.506 million in 2012. The Group recorded an operating profit of €2.224 million in 2013, 8.5% ahead of the operating profit of €2.049 million recorded in 2012.
Gross and net cash balances were €2.747 million and €2.139 million respectively at 31 December 2013 compared to €1.222 million and €0.138 million at the end of 2012. The availability of this cash gives the Group greater flexibility in funding its product-market development programmes in 2014 and beyond.