A weakness in sterling and a longer than anticipated integration of a company it acquired last year has resulted in publicly listed Irish mobile software company Zamano reporting a half year that is below expectations.
For the six months to 30 June, the board of Zamano expects EBITDA of at least €2.3m and adjusted, diluted earnings per share (EPS) of 2.0.
“While these results are below board expectations, they represent significant growth over the same period in 2007,” the company said.
Zamano’s board cited weakness of sterling as a factor as a substantial proportion of the group’s gross profit is generated in the UK.
The company also said the full integration of Red Circle has taken longer than anticipated, although this process has now been completed successfully and trading in May and June has recovered.
“Due to the performance of the business in May and June, the board is satisfied, assuming constant currency, that the group’s EBITDA and adjusted diluted EPS in the second half will show positive growth over the first half,” the company stated this morning.
“In addition, the board continues to monitor the decline in consumer confidence in our key markets and its potential impact on the business.”
Zamano said it expects to publish its interim results to 30 June 2008 in mid-September and will provide a further trading update at that point.
By John Kennedy