Monitise (LSE: MONI) – spoils the AIM results party with horrible numbers, buying opportunity?
Audited preliminary results for the year ended 30 June 2015 from the ‘digital technology company’ and news of the departure of the CEO brought about a meteoric sell-off in the share price which tumbled more than 50% to a mere 2.80p - they were priced at 46p this time last year. Has this business really got a future and could now be a buying opportunity?
The headline numbers tell a tale with revenue for the 12 months down 6% to £89.7m (not what one expects from a so-called high growth business, although there was a change of revenue model), the Group EBITDA loss £41.8m, although that was claimed to be at the lower end of the Company’s guidance range, and the reported loss a whopping £223m after loads of impairments and exceptional items. The Group incurred £45.0m in capex of one kind or another (FY 2014: £26.1m), in the “productisation” and development of Monitise technology platforms. We are never keen on new vocabulary when it…