Monitise - An AIM company worth watching

AIM company Monitise released quite an upbeat trading statement today that this is company that may be worth investigating, putting on a watchlist, DYOR applies.

What I find impressive is the number of key words used in the statement that suggest things are going good for the company.  Robbie Burns in his book The Naked Trader suggests that looking out for key words in statements can give you a good idea of how a company is doing.  Use of the word "challenging" seems to happen a lot these days in company statements so it makes a change to see a more upbeat message.  Be interesting to see if this one can keep its growth potential going.

Monitise Group CEO Alastair Lukies said:

“The Mobile Money landscape continues to grow at an astonishing rate. As a major global force in Mobile Money, Monitise remains positioned at the centre of this huge ecosystem with its platform, skills and partnerships driving another year of phenomenal growth. Our clear and unwavering strategy is to provide our white-labeled, cloud-based Monitise Enterprise Platform to the world’s leading financial institutions and payments companies, helping them retain their rightful role as the consumer custodian in mobile financial services.”

Monitise Group Chairman Duncan McIntyre added:

“Once again the Monitise team has achieved substantial growth in the financial year 2012 and proven the global demand for a truly bank-grade Mobile Money platform. We believe we have both the leading platform and market position so as the landscape continues to evolve and accelerate we must continue to invest to optimise shareholder value.”

Highlights:

• Full-year 2012 revenues are expected to be approximately $53m (£34m)⁽¹⁾, nearly two and a half times the $22m (£14m) reported last year, making it the third successive year that revenue has more than doubled compared to the previous year.
• Gross margins for the year are expected to be in the region of 66%, compared with 62% last year, and on track to hit more than 70% by the second half of 2012/13.
• Total Monitise registered customers are approaching 16m, three and a half times the level seen at the time of Monitise’s full-year results in September 2011. The group is attracting well over half a million new registered customers per month.
• The order book of the combined Group at the end of June 2012, comprised of more than $170m committed minimum orders, plus a further $250m of additional revenues expected from existing contractual arrangements, making more than $420m (£270m) in total.
• Around $75m (£48m) of this order cover is expected to flow through to revenues in 2012/13.
• Total Group revenues in 2012/13 are expected to be in the region of $110m (£70m).
• The Group remains on track for EBITDA break-even by December 2013.
• Monitise now provides Mobile Money services to over 300 financial institutions and partners, including a third of the top 50 financial institutions and of these eight of the top 13 in North America.
• Combined business handles over a billion transactions per annum, as well as payments and transfers worth $15bn on a current weekly annualised basis.
• For 2011/12 it is expected that a move to equity accounting ⁽²⁾  will result in a $3m (£2m) increase in reported full-year revenues to approximately $56m (£36m).

Source - http://www.monitise.com/media/press_releases?id=613