The troubled Zed subsidiary, Monstermob has issued a statement saying that two of its Chinese subsidiaries, M Dream and W Infinity have stopped providing it with any further financial or operational information. Monstermob says that it is currently taking legal advice as to the best way of responding to this situation and will make further announcements in due course.
No explanation as to why they have taken this step was offered.
If this new crisis for the company is not resolved in time it is not certain that Monstermob will be able to produce consolidated interim and full year results for 2007 when they next fall due.
M Dream was acquired in January 2006 and W Infinity in April 2006. For the year ended 31 December 2006, M Dream and W Infinity accounted for £11.8m (US$15.6) million out of the Company's total consolidated turnover of £106.9 (US$213) million, and £4.0 (US$8) million out of the Company's consolidated pre-exceptional EBITDA of £12.3 (US$24.5) million. As reported in the preliminary results of the Company on 25 May 2007, the performance of all the Chinese subsidiaries fell significantly in the second half of 2006 and during this period M Dream and W Infinity reported a profit of £0.5 million at the EBITDA level, on turnover of £4.9 million.
A trading update for Monstermob will be announced shortly."
Posted to the site on 6th June 2007
Posted to: www.cellular-news.com/story/24190.php