Mobile group's share price up 12.5% on strong trading news

Mobile phone company Getmobile Europe saw its share price rise by 12.5 per cent yesterday after it issued a positive trading statement.

The company, chaired by entrepreneur Pierce Casey, said its German subsidiary, Getmobile AG, anticipates that its earnings before interest, tax and listing costs for 2005 will be approximately 20 per cent ahead of the €3.97 million it reported for 2004.

In October last year, the company's share price fell by one-third after it issued a profit warning, saying it had been hit by the postponement of the start up of a key sales channel and tough conditions in the German market.

At that time, the share price fell to €0.55. Yesterday 3.5 million of the company's 94.26 million shares traded on the IEX on the Dublin stock exchange. The price was up 12.5 per cent on the day, to €0.45. On the London AIM, where 20,000 shares traded, the share price was up 1p, to 32p.

The company said the German subsidiary's trading was strong in the last quarter of 2005, with a solid rise in contracts sold compared to the same period in 2004.

"Given the poor trading experienced in the third quarter to September 30th along with contract delays, underperformance in some new sales channels, and cancellations which affected quarter four, the board is encouraged by the satisfactory revenue achieved and the monthly increases in contracts sold through October, November and December."

The company said it ended the year in a highly liquid position, with cash balances of approximately €6 million and no debt.

"Getmobile anticipates further growth in both revenues and profits in 2006. Getmobile intends to announce audited final results on March 29th," the company said in its trading update.