TIDMMONI
RNS Number : 3698I
Monitise PLC
25 March 2015
MONITISE plc
Monitise announces conclusion of its Strategic Review, end of
Offer Period and Board changes
Independent strategy to be pursued
FY 2016 EBITDA profitability target reiterated
25 March 2015, London, UK - Monitise plc (LSE: MONI)
("Monitise", the "Company" or "Group") announces that, further to
the initiation on 22 January 2015 of a Strategic Review for the
business, the Board has concluded that the best way of maximising
long-term value for all stakeholders is to continue transforming
and streamlining the business as an independent company. In
addition, Monitise reiterates its FY 2016 EBITDA profitability
target. Accordingly, the Formal Sale Process previously announced
on 22 January 2015 has now ceased, and the Company is no longer in
an "Offer Period" (as defined in the UK Takeover Code).
Strategic Review
As part of the Strategic Review initiated on 22 January 2015,
the Board, supported by Moelis & Company as independent
financial adviser, thoroughly explored all options open to the
Company. In considering options for the business under the
Strategic Review, the Board was cognisant of the value on a
standalone basis of Monitise's partnerships with strategic
investors, channel partners and clients such as Santander,
MasterCard, IBM, Visa Europe, and RBS among others. The Board
received a number of expressions of interest from various parties.
However, the Board concluded that none of these indicative and
non-binding proposals fully recognised the longer-term value of
Monitise. The expressions of interest were also structured in such
a way that there was considerable uncertainty over their ultimate
deliverability. The Board was also mindful that the Strategic
Review should conclude within an acceptable timeframe; such that it
did not interfere unduly with ongoing business opportunities,
client services and discussions with partners and clients.
Board changes
-- Co-CEO Elizabeth Buse becomes sole CEO of Monitise.
-- Founder and co-CEO Alastair Lukies steps down from the Board with immediate effect and
remains available to the business and key partners as Founder
and Strategic Adviser to Elizabeth Buse.
-- Stephen Shurrock, CEO of Consumer at Telefónica within the
Commercial & Digital Unit, is
appointed Non-Executive Director representing strategic
shareholders Telefónica and Santander.
An announcement regarding Stephen's appointment, including
details required under the AIM
Rules, is being released separately this morning.
Standalone strategy and on-going business transformation
-- Monitise's focus will be on sales in Europe, the Middle East
and North America. Additional market
opportunities will be pursued where they directly support
partner needs.
-- Cost optimisation projects already announced, including the
transition of UK professional services
employees to IBM, and streamlining benefits from the shift to
being a product-led business such as
a narrowing of development focus to core products, to be
supplemented by new initiatives,
including centralising its R&D from a hub in Istanbul.
-- Action underway to improve profitability of under-performing businesses and exit non-core
business areas.
-- Initial Monitise Central Platform Bank and Pay capabilities
launching in April with additional
functionality to follow driven by customer demand.
-- Transition to recurring-revenue driven business underway,
building on strong client and partner
relationships, internal expertise, and solid balance sheet, as
outlined most recently at the 17
February 2015 Capital Markets Day.
"Santander believes that Monitise is uniquely well positioned as
an independent player in the fast-growing digital money space. We
have already through our partnership with Monitise developed some
market-leading propositions for our customers and intend to
continue doing so through what we expect to be a long and mutually
beneficial collaboration." - Senior Executive Vice-President and
Corporate Director of Innovation at Banco Santander José María
Fuster
Current trading and guidance
-- Reiterate guidance for FY 2015 (revenue GBP90-100m and EBITDA loss GBP40-50m) and for EBITDA
profitability in FY 2016.
-- In addition to revenue growth, we continue to expect H2 2015
operating and capital expenses to be
materially lower than H1 with a further improvement in FY
2016.
-- Company's cash position provides balance sheet strength to
see Monitise through to break-even
and beyond.
-- Monitise continues to see 200m users / GBP2.50 ARPU as commensurate with the scale of its
opportunity. Given the achievement of those targets will be
driven by partner-led product and
service roll outs we no longer think it appropriate to give
guidance as to the timing of those targets.
-- More than 30% EBITDA margins by end FY 2018, underpinned by high operational leverage in the
business.
Monitise Chairman Peter Ayliffe said: "Following a thorough and
disciplined Strategic Review, the Board has concluded that the best
prospects for the business and shareholders are through remaining
as an independent company. I am extremely confident that the
business is at a point in its development where the prospects for
delivering long-term value are excellent. The feedback from third
parties re-affirms that we have a uniquely strong technology
platform, a talented and highly respected management team, and a
deep well of support among staff, partners and clients for what we
are seeking to achieve.
Since joining Monitise, Elizabeth Buse has made a significant
impact across the business and the Board is delighted that she will
be leading the Company during the next phase of its development. We
are delighted that Stephen Shurrock is joining us as Non-Executive
Director. He brings invaluable experience from his time
spearheading leading businesses in the telecoms and digital
industries, and joins us at an important time for Monitise.
On behalf of the Board, I would like to thank Alastair Lukies as
the founder of, and inspiration behind, Monitise. His vision,
tireless hard work and energy have created a business that has
delivered leadership in its space and given us the base from which
we can build a long-term successful business. The Board is very
pleased that Alastair will continue to work with us in his new role
as Founder and Strategic Adviser."
Monitise CEO Elizabeth Buse said: "Monitise is a great business
with a unique offering. My priorities are centred on delivering
value to all our stakeholders through the development and
deployment of excellent products and services and to ensure that
Monitise remains on track to become EBITDA profitable in FY 2016
and continues to be well positioned to deliver against its longer
term goals."
Monitise Founder and Strategic Adviser Alastair Lukies said:
"Monitise is a unique business that set out a decade ago to be the
leading, trusted enabler of mobile money services to some of the
world's leading financial institutions. In achieving that goal, it
has also positioned itself perfectly for the rising tide of digital
commerce. As an agnostic, independent and self-sustaining business,
led by an incredible leader in Elizabeth, employing some very
talented people with a technology platform that is bank grade,
scalable and steeped in innovation, Monitise is set to thrive."
Chairman Peter Ayliffe, CEO Elizabeth Buse, and CFO Brad Petzer
will host a conference call for investors and analysts today,
Wednesday March 25 2015 at 9am GMT.
Dial-in details are as follows:
Conference ID and name: 14748787 & 'Monitise call'
UK Free Dial-In: 08000738965
Standard International Dial-In: +44 (0) 1452 560304
US Dial-In: 16316215256/ 18669265708
A replay facility will also be available within 24 hours on the
following numbers:
UK Free Dial-In Call: 08009531533
Standard International: +44 (0)1452550000
US Dial-In: 1 (866) 247-4222
The replay facility will be available for seven days.
About Monitise
Monitise (LSE: MONI) is a world leader in Mobile Money -
banking, paying and buying with a mobile device. Leading banks,
payments companies, retailers and mobile networks use Monitise's
technology platforms and services to securely connect people with
their money.
33 million consumers have registered for Monitise's patented
technology to 'bank anywhere', 'pay anyone' and 'buy anything',
accounting for $101bn of payments, purchases and transfers
annually. Additionally, Monitise-designed high-engagement apps
across multiple industry verticals and email subscribers to the
Monitise Content consumer business total more than 49 million. More
information is available at www.monitise.com. For views and
insights from the Monitise team about the world of Mobile Money,
visit www.monitise.com/insights and to find out more about
Monitise's mobile innovation and design studio, visit
www.monitisecreate.com.
Enquiries:
Investor Relations Tel: +44(0)20 3657
Richard Johnson, Michelle Singleton 0331
investorrelations@monitise.com
Media Relations
Gavin Haycock, Anna Howard Tel: +44(0)20 3657
press@monitise.com 0362
Moelis & Company
(Financial Adviser)
Mark Aedy, Elliot Richmond Tel: +44(0)20 7634
3500
Canaccord Genuity
(NOMAD)
Simon Bridges, Cameron Duncan
Tel: +44(0)20 7523
Brunswick 8000
Jonathan Glass, Andrew Garfield
Tel: +44(0)207
404 5959
Forward Looking Statements
This announcement includes statements relating to the business,
financial performance and results of the Company and/or the
industry that the Company operates in which are forward-looking in
nature (all statements other than statements of historical facts
could be deemed to be forward-looking statements). These forward
looking statements are based on the Company's or, as appropriate,
the Company's directors', current expectations and projections
about future events. These forward-looking statements speak only as
of the date of this announcement and are subject to risks,
uncertainties and assumptions about the Company and its
subsidiaries and investments, including, among other things, the
development of its business, trends in its operating industry and
future developments in the m-commerce market. In light of these
risks, uncertainties and assumptions, the events or circumstances
referred to in the forward-looking statements may differ materially
from those indicated in these statements, and you should not place
undue reliance on these forward-looking statements as a prediction
of actual results or otherwise. Save to the extent expressly stated
herein in respect of the Profit Forecasts, none of the future
projections, expectations, estimates or prospects in this
announcement should be taken as forecasts or promises nor should
they be taken as implying any indication, assurance or guarantee
that the assumptions on which such future projections,
expectations, estimates or prospects have been prepared are correct
or exhaustive or, in the case of the assumptions, fully stated in
this announcement.
None of the Company nor any other person guarantees that the
assumptions that underpin any such forward-looking statements are
free from errors, nor do they accept responsibility for the future
accuracy of any of the opinions expressed in this announcement.
These forward-looking statements speak only as at the date of this
announcement and, except as required by the AIM Rules and
applicable law, the Company undertakes no obligation to update or
change any forward-looking statements to reflect events occurring
after the date of this announcement.
Moelis & Company is acting exclusively as financial adviser
to Monitise and no one else in connection with the Strategic Review
described in this announcement. In connection with such matters,
Moelis & Company will not regard any other person as their
client, nor will they be responsible to any person other than
Monitise for providing the protections afforded to clients of
Moelis & Company or for providing advice in connection with the
Strategic Review described in this announcement or any matter
referred to herein.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCGMGZFZDZGKZZ
Monitise (LSE:MONI)
Historical Stock Chart
From Aug 2024 to Sep 2024
Monitise (LSE:MONI)
Historical Stock Chart
From Sep 2023 to Sep 2024