2ergo retreats from overseas commitments amidst profits warning

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By John Glenday, Reporter

February 28, 2012 | 1 min read

Salford based mobile phone technology firm 2ergo has issued a profits warning amidst continued delays in closing deals – despite raising £2.4m from the sale of three international businesses.

As part of its restructuring programme 2ergo recently sold its American, Australian and Indian operations to focus on its partnership in the US with Microsoft’s Innovation Outreach Programme.

At home 2ergo will use its windfall to speed up the rollout of podifi, a contactless mobile phone payment technology which the firm harbours high hopes for.

Neale Graham, podifi’s chief executive, said: “As part of the review accompanying our restructuring programme, we concluded that our overseas operations were sub-scale and not in line with the group's core strategy.

“Although the strategic restructuring has been a distraction for the management, we are now a focused operation and in an excellent position to capitalise on the numerous opportunities we are seeing in our core business and especially the potential of podifi, our ground breaking contactless mobile coupon and payment technology.”

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