LONDON (Alliance News) - Monitise PLC said Monday it is no longer for sale, deciding that its "best prospects" are from remaining independent, and reiterated its target for profitability in 2016 as its Co-Chief Executive Elizabeth Buse was named sole chief executive officer.
The mobile banking and payment services company started a formal sales process in January, and said it had received "a number of expressions of interest from various parties". However, it concluded that none of these proposals "fully recognised the longer-term value of Monitise", and were structured in a way that meant there was "considerable uncertainty over their ultimate deliverability".
Buse will take the helm, with Founder and Co-Chief Executive Alastair Lukies stepping down from the board with immediate effect. Lukies will remain as a strategic adviser to Buse, the company said.
Monitise reiterated its guidance of an earnings before interest, tax, depreciation and amortisation loss of between GBP40 million to GBP50 million for 2015 on revenue of between GBP90 million and GBP100 million, and its target for earnings profitability in 2016.
Additionally, it expects its operating and capital expenditure in the second half of 2015 to be lower than in the first half, and to see further improvement on this from in 2016.
The company outlined its new strategy as a standalone company, highlighting a focus on Europe, the Middle East and North America, and working to improve profitability in under-performing businesses and exiting non-core business areas amongst other measures.
"Following a thorough and disciplined strategic review, the board has concluded that the best prospects for the business and shareholders are through remaining as an independent company. I am extremely confident that the business is at a point in its development where the prospects for delivering long-term value are excellent," said Chairman Peter Ayliffe in a statement.
The company has appointed Stephen Shurrock as a non-executive director to act as a nominated director on its board from Telefónica SA and Santander.
Shurrock is current chief executive of Consumer at Telefónica in the commerical and digital unit.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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