Morse's board has voted to demerge the company from Monitise, a division of the group which develops mobile banking and payments solutions.

Monitise, which was founded four years ago, will be listed on AIM.

Morse says the decision was taken because the two businesses operate separately anyway, and have "distinct characteristics". It started work on dividing the company in November 2006 when it split the firm into two divisions overseen by a holding company.

Morse chairman Richard Lapthorne said: "Monitise has reached the point where its investment rationale is becoming clear and demerger will ensure that both Morse and Monitise can pursue their programmes for growth independently, whilst providing an investment choice for our shareholders." ®