Morse splits in two

Corporate VAR creates two distinct units following financial results

Integrator Morse has divided into two separate business units after posting its 2006 financial results.

One part of Morse Plc will now operate as Morse, an advisory and professional services business. Its services will be focused on three main areas: management consulting, applications consulting and infrastructure consulting.

The other part of Morse Plc will be Monitise, a business based around secure mobile banking applications. The two businesses will operate as distinct entities.

Morse's group turnover from continuing operations was down four per cent to £297m in 2006, compared with £309.2m in 2005. However, its operating profit from continuing operations was up 34 per cent to £7.4m, compared with £5.5m in 2005.

Richard Lapthorne, chairman of Morse, said the roll-out of Monitise as a separate business organisation is justified due to Morse realigning its business from being a pure reseller into being professional services company.

"Each of the two businesses, Morse and Monitise, have quite different characteristics and it is appropriate that each operates separately under the Morse Group umbrella. We firmly believe that there is a significant market opportunity for Morse’s advisory and execution business and are targeting a doubling of percentage operating margin in the medium term. In addition, we believe Monitise has the potential to generate significant revenues and operating profits within the medium term," added Lapthorne.