One of the UK’s brightest technology hopefuls could be heading for an ignominious end. Mobile payment specialist and former stock market darling Monitise, which runs banking apps for RBS and HSBC, warned yesterday that the 25 per cent revenue growth the City had pencilled in for 2014 has failed to materialise, with revenue likely to be flat at £90-£100m.
The loss-making business, which listed in 2007, effectively put itself up for sale as it appointed investment bank Moelis to review its options. It comes after a tough year in which Monitise has attempted to shift to a subscription-based model and faced threats from major investor Visa to develop a rival product. As financial players have increased investment in technology, Monitise has struggled to prove that what it does can’t be replicated.
Monitise was worth £1.7bn at its height but ended the day worth £320m, down 5p at 15p. Exane BNP Paribas said Mastercard and IBM, both backers of the company, would be likely buyers.
Mario Draghi’s box of tricks helped the FTSE 100 reach a four-month high, up 68.59 points at 6796.63 as the index’s run of gains extended into to a sixth day. Engineer Smiths Group topped the index, 54p better at 1136p, after signing a six-year deal with AT&T that will help it expand its operations.
Nanotechnology specialist Oxford Instruments tumbled 305p to 795p as it sounded the alarm over profits, warning the full-year figure is set to be 25 per cent below previous expectations. The company blamed Russian sanctions and continued weak demand from Japan.
It’s Quindell Jim, but not as we know it. The embattled insurance outsourcer revealed at the start of the year that it was in exclusive talks to sell one of its divisions to an unnamed buyer. Yesterday Slater & Gordon was revealed as the interested party, meaning Quindell’s legal operation is likely on the block. Last year Quindell claimed to be the world’s largest listed law firm, so it will be interesting to see how it stacks up if a sale goes through. Quindell, up 16.25p at 121.5p, stressed that there’s no guarantee any deal will go through.Reuse content