Mobile payments and marketing firm Zamano has reported a sharp rise in revenues for the first half of the year, but a drop in pre-tax profit.
Zamano's sales rose by more than 80% to €18.7m for the period (compared with €10.4m for H1 2015), but profit before tax fell by 30.7% to €794,000 due to an increased spend on advertising and the lower value of some sales.
The company said it has improved its net cash position during the period, which will help it to focus on its acquisition strategy aimed at growing its presence in the higher value end of the market.
Zamano has cash of €7.4M at the end of June, representing an increase of 36.7% on the same time last year.
Zamano’s Acting Chairman Colin Tucker said that while the overall trading outcome for the first six months of the year was “mixed”, there was a significant rises in sales and cash generation performance.
He said this was “offset by falling margins due to increased investment in advertising, a changing sales mix in the UK and some foreign exchange headwinds.
“We anticipate an improvement in operating performance during H2 2016 thanks to H1 advertising spend and continuing strong UK sales performance.
“The 36% jump in our net cash position is very welcome as it provides us with a solid platform to implement our acquisition strategy”.
Mr Tucker added that Zamano expects to make “significant progress” on strategic acquisitions in the second half of the year.
