Mobile data provider Zamano experienced a "significant fall off" in revenue and profits for the six-month period ended June 30th following regulatory changes in the United Kingdom.
Revenue at the company dropped to €4.4 million in the six months, which was down from €18.8 million the year before.
Gross profit was €928,000, which was also down significantly from the €2.3 million the year before. The company posted an operating loss of €411,000 after posting an operating profit of €796,000 in the same period last year.
Total comprehensive losses of €416,000 were down from €625,000 last year. The company’s assets totalled €8.3 million, which represented another significant reduction on the €18.8 million the year before.
Payforit, a joint initiative of mobile network operators in the UK to regulate mobile payments, underwent changes last year, and Zamano has not been able to avail of previous exemptions with regard to its UK revenues since then.
Following the changes, the board decided to sell all of the group’s operating business and assets.
Wind down
Zamano took the decision in February to formally wind down all existing premium rate SMS business lines over the course of 2017 and during the period to June 30th, 2017.
The board concluded that the wind down of the premium rate SMS business would most effectively be completed by a sale of the group’s remaining operating business and assets.
“As anticipated, the impact of the changes to Payforit resulted in a significant fall off in the company’s revenue and operating outcomes,” said the company in a statement.
A sales process was instigated during this period, and group management agreed to purchase all of its operating business and assets.
On June 30th, the disposal group was stated at a value of a negative €1,232,000, comprising trade and other receivables of €1,206,000 and trade and other payables of €2,438,000, including estimated transaction costs of €250,000.
On August 11th, Zamano entered into a conditional sale and purchase agreement to sell all of the group's operating business and assets to Kilavan Holdings.
Since the completion of the disposal, the board has been engaged in a process to return cash to shareholders and to explore suitable investment opportunities.
“We will, of course, continue to keep shareholders fully appraised on all progress made in relation to either a cash distribution to shareholders or any investment opportunities that may crystallise at the appropriate time,” added the company.
