Loss-making Monitise bullish as order book bulges

Despite losses outstripping revenue, Morse spin-off dubs its fiscal 2011 a "breakthrough" year

Morse spin-off Monitise says it is on course to break even by 2013 as demand for its "mobile money" solutions continues to gather steam.

According to its preliminary results, Monitise sank to an ugly annual loss of £14.5m for its fiscal year to 30 June, higher even than the £14m in revenue it generated.

However, the London-listed firm stressed its order book had grown sixfold year on year to £78m, following strategic contract wins with Visa and RBS.

Group chief executive Alastair Lukies called it a "breakthrough year".

"We are a high-growth company and a market leader in the mobile money space just as it hits its own tipping point," Lukies said.

"We have built a robust, secure, interoperable bank-grade technology platform that, combined with our world-leading product road map, is relevant in all parts of the globe."

Monitise has amassed 4.5 million registered customers – up more than twofold year on year – and conducts 10 million mobile banking transactions a month.

Following a 133 per cent rise in 2011 revenue, it said it is on course to double revenue again in 2012 and would break even in calendar 2013.

The firm, which span out of reseller Morse in 2007, also claimed it is in a "robust financial position" with a cash balance including short-term deposits of £23.6m, as of 30 June.

Duncan McIntyre, chairman of Monitise, said: "The group is hitting key targets as our live operations now deliver profit, we deepen our partnerships with Visa Inc and RBS Group, and form new partnerships with Visa Europe and Astra, among others."