TIDMEPO
RNS Number : 4124M
Earthport PLC
16 July 2014
16 July 2014
Earthport plc
("Earthport", or, the "Company")
Trading Update
Accelerating performance as Earthport signs with leading
industry players
Earthport (AIM: EPO.L), the cross-border payments services
provider is pleased to provide an unaudited trading update for the
year ended 30 June 2014.
Highlights:
-- Revenue expected to exceed GBP10.7 million, an increase of
over 160% (FY 2013: GBP4.1 million)
o Includes eight months contribution from Baydonhill, following
its acquisition in November 2013
o On a like-for-like basis, revenue increased by over 60%,
demonstrating an acceleration in underlying business
performance
-- Cash balance at the end of the year amounted to over GBP9
million (FY 2013: GBP13.4 million)
o Net cash used in operating activities decreased to
approximately GBP5.3 million (FY 2013: GBP5.9 million), including
approximately GBP700,000 of exceptional acquisition related
costs
o Net cash used in the second half of the year was approximately
GBP2 million (H2 2013: GBP3.3 million)
-- Strong operational progress:
o 33 new customers were signed during the year (FY 2013: 21)
o 14 customers went live during the year (FY 2013: 13)
-- Pipeline of 25 customers under contract and in implementation
stage ahead of going live (FY 2013: 7)
o With many clients yet to go live, and with several in advanced
stages in the pipeline, there is significant embedded revenue
potential
Revenue growth demonstrates acceleration in business
performance
We are pleased to report strong trading during the year, driven
by both transactional and professional service revenue growth.
Revenue increased by more than 160% to over GBP10.7 million,
including eight months of revenue contribution from the acquisition
of Baydonhill. On a like-for-like basis, revenue increased by over
60% over the prior year showing an acceleration of the underlying
business in the second half of the year. The monthly run rate of
revenue continues to show strong growth, with June 2014 revenue 40%
higher than those in December 2013.
Decrease in cash consumption reflects pivotal point
Like-for-like net cash used in operating activities decreased to
GBP4.5 million (FY 2013: GBP5.9 million), reflecting a turning
point in terms of cash used versus revenue growth. Net cash used in
the second half of the year showed a continued decrease to
approximately GBP2 million versus GBP3.3 million in H2 2013.
Strong adoption by industry leaders
During the 2014 financial year, Earthport contracted with some
of the world's leading banks and money transfer organisations. Key
clients signed during the year include Bank of America Merrill
Lynch, HSBC, State Street Corporation, PNC Bank, Aktif Bank and
World Remit. Bank of America Merrill Lynch is live and transacting
for some parts of its business, contributing to the growth in
revenue. Other business units within Bank of America Merrill Lynch
are currently integrating with Earthport and are expected to go
live over the next 6-12 months. HSBC is in active integration and
expected to go live within the next 6 months.
Baydonhill acquisition successfully adds strategic value
The acquisition of Baydonhill in November 2013 added significant
strategic value to Earthport's product offering and positioning.
The integration is progressing well and has increased Earthport's
unique and compelling white-labelled service. No other business can
offer local payments into 63 countries across 100 currencies,
supported by a sophisticated compliance process and scalable
infrastructure.
Operations strengthened for further acceleration in growth
Investments made in previous years in areas such as in global
compliance capabilities and organisational talent have enabled
Earthport to initiate, develop and contract with some of the
world's largest banks despite a highly compliance focused
environment. Earthport expects its compliance capabilities will
continue to be a structural advantage for the business.
During the 2014 financial year, Earthport was pleased to appoint
Jorge Moran to the board as Non-Executive director, a highly
experienced banking professional (most recently CEO and President
of Sovereign Bank and Santander US country head). Additionally
Earthport further strengthened its in house expertise through the
appointment of Sajeev Viswanathan, an experienced banker and
entrepreneur as President - Global head of Strategy and Product,
responsible for Earthport's global network expansion and product
development.
Hank Uberoi, CEO Earthport plc commented "Broad acceptance of
the Earthport model is gathering pace as evidenced by the contracts
signed in the year with some of the largest and most sophisticated
banks and money transfer organisations in the world. With many of
these yet to go live, there is significant embedded revenue
potential within our existing client base and we have several other
major opportunities in advanced stages of the sales pipeline. We
therefore look to the future with confidence."
The Company will announce its Full Year audited results in
October 2014.
For further information, please contact:
Earthport plc
Hank Uberoi 020 7220 9700
Charles Stanley Securities
Mark Taylor / Paul Brotherhood 020 7149 6000
Panmure Gordon
Fred Walsh 020 7886 2500
Newgate Threadneedle
Fiona Conroy / Caroline Forde / Josh Royston
/ Jasper Randall 020 7653 9850
About Earthport
Earthport plc, a regulated global financial services
organisation, specialises in the provision of a white label
cross-border payments service.
Through its innovative payments framework, specifically designed
for high volumes of low value cross-border payments, Earthport
provides a cost-effective and transparent service for secure
international payments. Earthport's clients include banks, money
transfer organisations, payment aggregators, e-commerce businesses
and foreign exchange businesses. Through Earthport's well
established payments infrastructure, clients can clear and settle
payments directly to banked beneficiaries in 60 countries.
The company is headquartered in London and is listed on the
Alternative Investment Market (AIM) on the London Stock Exchange.
It operates globally with additional regional offices in Dubai and
New York. Earthport plc is authorised and regulated by the
Financial Conduct Authority under the Payment Service Regulations
2009 for the provision of payment services. To learn more, please
visit www.earthport.com and follow us via RSS or on social
channels, Twitter @Earthport, LinkedIn, Youtube and Slideshare.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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