Zamano has reported sales of €8.72m for the six months to the end of June, down from the €9.02m reported the same time last year, as its trading environment remains challenging.

The Dublin-based company - which develops mobile-based marketing and customer service products - said its gross profit for the six months came to €2.38m compared to €2.53m in June 2013.

It said the fall was due to the fact that it has changed its business mix in the UK by expanding its third party sales in the business to business area, which carries a lower margin. 

Zamano said its Irish sales for the six month period fell to €1.747m from €2.179m the same time last year. It said the weakening trend in its Irish business resulted from the introduction by ComReg of a new code of practice in the middle of 2012. 

The company said that while the extent of the decline in sales slowed during the six month period, conditions remain challenging.

But it said its UK operations performed "extremely well" during the first half of the year with sales rising by 15.3% to €6.423m.

The company also reported a "stellar" performance in Australia, where sales were significantly ahead of last year due to the successful rollout of a strategic marketing campaign with new mobile advertising partners. 

"The group continues to invest in product development and is firmly focussed on identifying acquisition, investment and joint venture opportunities in the UK and Ireland in order to accelerate the growth of the business," commented Zamano's chief executive Ross Conlon.