Zamano PLC, a provider of interactive web and mobile services, has issued an Interim Management Statement showing good progress over the past twelve months with improvements in gross profit and EBITDA evident in H1 2011, while net debt is approximately €3.4 million.
Revenues declined 10% against H2 2010 as a result of a restructuring of the Group's business units, while cost structures were also optimised.
Investment in extending routes to market in Ireland, UK, Spain and USA is ongoing, and the Board expects revenue growth to resume in Q4.
The Group is now structured as three business divisions; Everneo, Zamano Solutions Ltd (ZSL) and Newsworthie. Everneo is the Group's largest division, and is focused on selling mobile content and interactive services to consumers in 4 territories (Ireland, UK, Spain and USA), while ZSL provides messaging services to businesses in Ireland and the UK.
Newsworthie is a new business which works with newspapers to monetise online content by optimising that content to facilitate a more targeted and results-linked advertising proposition.
A debt restructuring was announced in early January. Newsworthie will require further investment in order to capitalise on its significant growth prospects. To date, investment has been funded by profits from Everneo and good progress has been made in establishing the business model, putting in place a strong team, and winning a very significant first contract.
Further investment in Newsworthie, as well as debt capital repayment requirements now presents a challenge for the Group and the Board is actively engaged in addressing this.
To strengthen the management team in anticipation of growth, the Board has announced the appointment of Joe Morley as a director and the Group's Chief Operating Officer. Morley will also take on the role as Managing Director of Newsworthie.
Morley has worked with Zamano for the past year, and was instrumental in the re-structuring which optimised the cost base of Everneo and ZSL, and has also led Newsworthie through its early development phase.
At 8:59am: (LON:ZMNO) share price was 0p at 2.35p
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