1 Jul 2014 07:00
MOPOWERED GROUP PLC
("MoPowered" or "the Group")
TRADING UPDATE
MoPowered (AIM: MPOW), the mobile commerce specialist, continues to grow strongly with revenues in the six months to 30 June 2014 in excess of three quarters of a million pounds. This growth of over 60% from the second half of 2013 represents less of an increase than had been anticipated.
During the period, the Group has built a large pipeline of mid-market businesses that wish to take advantage of mobile commerce through MoPowered. Robust new partnerships and sales capabilities continue to be put in place to ensure sustained future growth. Additionally, MoPowered is creating opportunities to commercialise further the Group's intellectual property.
After a strong first quarter, some of the larger deals which the Group had expected to complete in the second quarter of 2014 have now slipped into the second half of the year which will impact the expected results for 2014 as a whole. As previously announced, the rate of launching live mobile sites for smaller SME customers has been lower than expected due to operational constraints and challenges in acquiring these customers cost-efficiently . Consequently, growth in the Group's recurring revenues, and therefore revenues as a whole, will be more modest than had been expected for 2014 and beyond.
The overall market conditions for sales of mobile commerce solutions remain strong and MoPowered continues to build up distinct competitive advantages that are attractive to new customers and give confidence for the long-term.
Enquiries:
MoPowered: | 020 3242 0515 |
Dominic Keen |
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Ben Carswell |
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N+1 Singer: | 020 7496 3000 |
Gillian Martin Shaun Dobson |
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Buchanan: | 020 7466 5000 |
Charles Ryland |
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Sophie McNulty |
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Clare Akhurst |
NOTES TO EDITORS
MoPowered is a 'Software-as-a-Service' ('SaaS') platform, launched in March 2012, which works with businesses of all sizes, to automate websites and enable mobile commerce. Key distribution partnerships with PayPal, WorldPay and MasterCard enable the Group to access the majority of UK merchants.
The software platform allows automated development of mobile sites rather than custom deployment with the corresponding time and cost advantages. The commercial model is predominantly based on long-term contracted, recurrent revenues.
MoPowered is well positioned to capitalise on the new types of shopping opportunities created by mobile devices. Retailers face significant challenges and are therefore outsourcing to expert mobile partners such as MoPowered. Management believes that half of the e-commerce market has online sales of less than £20m per annum and SaaS solutions are likely to be the best economic alternative for these merchants.