Zamano PLC Business Update & Strategy/Board Changes (2203Q)
26 November 2016 - 2:39AM
UK Regulatory
TIDMZMNO
RNS Number : 2203Q
Zamano PLC
25 November 2016
This announcement contains inside information.
zamano plc
("zamano" of the "Company")
Business Update & Strategy/Board Changes
Zamano plc, a leading European provider of interactive
applications and services to mobile devices, provides the following
business update arising from the recent introduction of the
Payforit initiative in the UK.
Payforit was introduced on 1 November 2016 across all of
Zamano's UK business lines. As anticipated in the Company's
announcement of 30 September 2016, the Company has experienced a
significant reduction in new business in the UK market as a direct
result of this change. 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.
In the interim the company has taken appropriate steps to reduce
the cost base of the business as detailed below. It is anticipated
that the implementation of these cost savings will allow the
Company to continue to operate profitably into the future.
At the same time, the Board has decided to cease all ongoing
M&A discussions and focus on maximising cashflow from the
existing business in the UK, Irish and International markets. The
Company will continue to focus on maximising shareholder value
whilst continuing to explore options for further value
creation.
As a consequence of these developments, Mr. Pat Landy and Mr. Ed
Murphy have decided to step down from the Board with effect from 25
November 2016.
Mr Landy joined the Board in February 2011. He was CEO from
November 2011 to January 2014. During his time as director, Mr.
Landy made a significant and valuable contribution to the
business.
Mr Murphy joined the Board in August 2016 principally to help
implement the findings of the strategic review. As the Company is
no longer actively pursuing an M&A strategy, Mr. Murphy has
decided to step down.
The Board would like to thank both Mr. Landy and Mr. Murphy for
their contributions to the business during their tenure as
directors.
Cost saving measures
The Company has decided to implement a redundancy programme
comprising seven persons out of a total staff of eighteen. These
redundancies will be across all divisions and will reduce payroll
and related costs by approximately EUR330,000 on an annualised
basis.
It is not currently intended to replace Mr. Landy and Mr. Murphy
with new non-executive directors in the short term. The impact of
this will be to reduce directors' fees and expenses by
approximately 50% or EUR48,000 on an annualised basis.
A number of other cost saving measures are also being evaluated
by the Company and it is expected that these cost savings will be
delivered in the coming months.
Conclusion
The regulatory environment for Zamano's core business has always
posed an ongoing challenge to the Company's operations. The
measures outlined herein will assist the Company with its efforts
to maintain a cash generative and profitable business in the future
whilst also protecting the Company's existing cash position and
shareholder value. In this regard, the unaudited cash balances of
zamano at the date of this announcement are EUR7,298,000.
For further information, please contact:
zamano plc
Michael Connolly, Chief Tel: +353 1 554 7261
Financial Officer
Investec Corporate Finance
Shane Lawlor/Ian McGreal Tel: + 353 1 4210000
Cenkos Securities
Derrick Lee/Neil McDonald Tel: + 44 (0) 131 220
6939
MCOMM Communications
Consultants
Richard Moore Tel: +353 1 661 9428
Mob: +353 87 241 4751
Email: ir@zamano.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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