Tech firm Zamano's shares fall after it signals it's looking at acquisitions
Shares in Irish-listed mobile phone technology firm Zamano were down 7pc in Dublin yesterday after the company signalled its intention to pursue strategic acquistions in a bid to boost revenues.
Zamano said it would seek acquisitions as it bids to shift into higher value services.
The company said it has specific bolt-on targets in its sights in mobile advertising, social and billing.
Profits in the first two quarters of this year were lower as a result of an increased advertising spend and the effects of uncertainty in the UK.
Zamano said a strategic review completed in June came back with a recommendation to pursue new revenue growth strategies.
The review stated that the company should embark on a "growth-oriented acquisition programme in the mobile advertising, social and billing areas." It added that it has identified potential acquisitions in each sector. Acting chairman Colin Tucker told the company's agm that Zamano hopes to make an acquisition within six months.
He told the Irish Independent that as of now he envisaged paying for it via a cash and share deal. The company had almost €6.5m of cash and cash equivalents at the end of December, and shareholders were told yesterday that this had continued to grow in the current financial year.
Zamano director Pat Landy said it was looking at companies both "local and international".
The company also announced the appointment of technology entrepreneur Edmond Murphy to the board as a non-executive director. Mr Murphy will assist the board with the implementation of the company's strategic review.
Mr Tucker added: "We are delighted to welcome Eddie to the Board of Zamano. His extensive experience in payments, social media and advertising will be of considerable benefit to Zamano."