Zamano Regulatory News (ZMNO)

zamano plc

Trading Update & AGM Results

22 July 2010

zamano PLC (AIM:ZMNO, ESM:ZAZ), a leading provider of interactive applications and services to mobile devices, held its Annual General Meeting today. This announcement provides the results of the AGM along with a trading update for the Group.

Trading Update

The Group has commented for over 18 months on changes taking place within the mobile entertainment sector in which it operates. These changes have presented major challenges as well as opportunities for the Group.

In May 2010, the company indicated that a number of factors including industry regulations which took effect in early 2010 had a far greater impact than initially expected on customer acquisition and retention, with revenue in the Irish market particularly affected. Accordingly, for the six months ended on 30 June 2010 revenue is expected to be approximately €8.8M, EBITDA is expected to be approximately €1M and a material impairment charge against intangible assets is expected. During the period gross debt was reduced significantly from €9.2M at 31 December 2009 to €5.8M at 30 June 2010. Net debt at 30 June 2010 was €1.4M.

Against this backdrop, the Board instigated cost reduction measures, including a reduction in staff numbers, which was completed in June. A revised business plan designed to result in a stabilisation of the Group's revenues and profits has been agreed and the Board is reviewing the appropriate capital structure for the Group going forward.

The plan involves the Group concentrating its focus on four territories, Ireland, United States, UK, and Spain, where it has scale and sees growth potential. The company's R&D priorities are focused on improving key aspects of the customer experience in these regions.

It is expected that monthly revenue will grow during the 2nd half of 2010 from the June level, however total revenue will be down on the €8.8M revenue achieved in the first half of the year. Due to this revenue decline EBITDA is anticipated to be significantly lower in the 2nd half of 2010.

The Board believes that the business plan will position the Group to take advantage of medium term opportunities whilst stabilising it in the short term. The Group will provide an update on progress against the plan when it announces its interim results in late September.

AGM Results

The following resolutions were duly passed by a show of hands.

Resolution 7, proposed as a special resolution, was withdrawn by the Company.

The full text of each resolution was included in the notice of the Annual General Meeting circulated to shareholders on 21 May 2010.

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