Getmobile, the Irish-owned mobile services firm which is listed on London's AIM and Dublin's IEX markets, has posted a pretax loss of €54.35 million last year after being hit by a €53.97 million impairment charge arising from its acquisition of Getmobile AG in Germany.
The company carried out an impairment review following profit warnings in October 2005 and June 2006. This review resulted in its value being written down to €9.2 million with a non-cash goodwill impairment charge of €53.97 million that was charged in the interim accounts for the six months to June 2006. The company, which specialises in the sale of mobile phone contracts and devices in Germany, was acquired for €65 million in 2005 by Fitzwilliam Capital, the AIM-quoted investment firm founded by venture capitalist and entrepreneur Pierce Casey.
Before the charge, Getmobile said it operated profitably with earnings before interest, taxes, depreciation and amortisation (Ebitda) of €1.64 million on turnover of €63.60 million.
The prior period's figures of revenues of €31.76 million, Ebitda of €2.76 million, operating profit of €1.34 million and a profit before tax of €1.45 million are not comparable as they related to the six months to December 31st, 2005 and included only five months of Getmobile AG's results.
Net assets amounted to €18.72 million and the company had no debt at year end, according to Mr Casey. Cash balances increased by €0.226 million to €6.82 million after a cash payment of €2.2 million in connection with the acquisition in November of KK Media, an internet-based seller of mobile phone contracts and mobile phones in the German market.
Mr Casey said the firm would not pay a dividend due to the impairment review leaving a deficit on its revenue reserves of €58.15 million at December 31st, 2006. Getmobile's board has proposed that the company's share premium account of €71.33 million be cancelled and that the credit arising should be used to eliminate the deficiency on its profit and loss account, with the balance of €13.18 million creating a reserve on its profit and loss account.
The cancellation of the share premium account requires a special resolution of the company's shareholders and an order of the High Court confirming the cancellation of the share premium account.
"Following a difficult 2006, Getmobile has traded satisfactory in the year to date," said Mr Casey.