('zamano', the 'Company' or the 'Group')
Interim Management Statement
04 August 2016
Dublin, 4 August 2016: zamano plc (AIM: ZMNO, ESM: ZAZ), a leading European provider of interactive applications and services to mobile devices, is pleased to issue an Interim Management Statement in conjunction with its Annual General Meeting ('AGM') which is taking place today at 11.00AM at the Conrad Hotel, Earlsfort Terrace, Dublin 2.
In its results for the financial year ended 31 December 2015, which were announced on 10 March 2016, zamano reported a significant increase in sales driven by a strong performance in its UK business. This area of our business has continued to grow during the first half of 2016. However, overall Group contribution margins were lower as a result of increased advertising spend and the changing profile of the UK business.
In light of the market and regulatory changes which are currently taking place in our core business and indeed, the many growth opportunities which currently exist in product-market areas such as mobile advertising and billing / payments, the Board commissioned OFS, an IT consultancy, to carry out a strategic review of the business. This review was carried out over a four week period commencing early-June 2016 and the findings were formally presented to the Board at the end of July 2016. Its principal findings were that zamano needs to gradually reposition the business into higher value-added, growth-orientated activities, and that this can be most effectively achieved by implementing a focused bolt-on acquisition program in the mobile advertising, social and billing areas. The strategic review identified a small number of potential acquisitions in these three sectors which zamano is currently evaluating.
Appointment to Board
The strategic review exercise was carried out by a team led by Mr Edmond Murphy, a technology entrepreneur with investment interests in, inter alia, payments, e-commerce, advertising distribution and accounting software. The Board is pleased to announce that Mr Murphy has agreed to accept an appointment as a non-executive director of zamano and has been appointed to the board with immediate effect. It is envisaged that Mr Murphy will provide advice and assistance to the Company to ensure effective implementation of the findings of the strategic review over the course of the next few months and beyond.
Mr Murphy is founder and shareholder of Irish payments company, Continuum Commerce Ltd and is a director of US Social Media company, SoHalo LLC, US Marketing agency, The Campus Agency and US advertising distribution business, Speed Media Inc. He also co-founded the Irish web development business Labryinth which was subsequently acquired by BT.
Commenting on the appointment, Colin Tucker, Chairman, said:
"We are delighted to welcome Eddie to the Board of zamano.His extensive experience in payments, social media and advertising will be of considerable benefit to zamano as we actively pursue the re-positioning of the business".
The following information is disclosed pursuant to Schedule Two paragraph (g) of the AIM Rules for Companies. Mr. Murphy, aged 45 years, has been a director of the following companies during the five years preceding the date of this announcement:
The Campus Agency
Speed Media Inc
Little Samphire Island Limited
Travelonomy Limited (resigned December 2015)
Caldeira Limited (resigned September 2013)
Murcor Developments Ltd (voluntary strike off, 2013)
Allgarve Deals Limited (dissolved December 2012)
Mr Murphy holds no ordinary shares in the Company.
For further information, please contact:
Michael Connolly, Chief Financial Officer
Tel: +353 1 554 7261
Investec Corporate Finance
Shane Lawlor/Ian McGreal
Tel: + 353 1 4210000
Cenkos Securities (Nominated Adviser & Broker)
Derrick Lee/Neil McDonald
Tel: + 44 (0) 131 220 6939
MCOMM Communications Consultants
Tel: +353 1 661 9428
Mob: +353 87 241 4751