TIDMMPAY
RNS Number : 7709R
Mi-Pay Group PLC
26 September 2017
26 September 2017
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public domain
Mi-Pay Group plc
('Mi-Pay', the 'Group', or the 'Company')
Interim Results
Mi-Pay (AIM: MPAY), a leading provider of digital transformation
and mobile payment solutions to Tier 1 Mobile Network Operators and
Mobile Virtual Network Operators, is pleased to present its
unaudited Interim Results for the six months ended 30 June
2017.
Operational Highlights
-- During the period, Mi-Pay re-contracted
with its largest client for an incremental
three years. This is expected to secure
existing revenues and drive material growth
in payment transaction value processed
from the EUR25 million processed in 2016
to a run rate of over EUR100 million per
annum during 2018 as our Client integrates
a recently acquired customer base.
-- New contract win in the Philippines to
develop and deliver a new international
payment service by early 2018.
-- Implemented a trial with a new European
Client to deliver our first fraud as a
service solution.
-- Continued to deliver operational excellence
with high payment success rates and low
fraud levels.
-- Successfully delivered annual PCI DSS level
1 accreditation for 2017/2018.
Financial Highlights
-- The total value of transactions processed
in the period increased by 16% to GBP45.4
million versus H1 2016.
-- Total revenue recognised in the period
GBP1.5 million (H1 2016: GBP1.6 million)
as Mi-Pay increased its focus on long-term
annuity based Transaction Services revenue
growth, which grew by 12% to GBP1.4 million.
(H1 2016: GBP1.2 million). Reduced non-recurring
Professional Services revenues offset this
during the period.
-- Mi-Pay delivered improved Transaction Services
gross margin of 63% (H1 2016: 55%) as a
result of increased volumes, improved commercial
terms with our suppliers and strong operational
performance. Total Gross profit remained
flat at GBP1.0 million versus the same
period in 2016.
-- Further investment in our infrastructure
security and data encryption increased
total administrative expenses to GBP1.3
million (H1 2016: GBP1.2 million).
-- Adjusted Operating Loss of GBP0.2 million
for the period after excluding unpaid deferred
salaries, depreciation and exceptional
costs related to merger and acquisition
reviews.
-- Cash & cash equivalents as at 30 June 2017
increased to GBP3.7 million (H1 2016: GBP3.4
million) as our growth in Payment Transactional
Value Processed increased the levels of
client funds held.
-- Net cash out flows from operating activities
for the period, excluding movements in
amounts due to clients, cash flow from
financing and investing activities and
one off exceptional expenditure was GBP0.2
million. (H1 2016: net cash outflow GBP0.1
million).
-- Cash outflow for the period was offset
by receipt of GBP0.3 million in July 2017
for annual research and development tax
credits.
-- Basic and diluted loss per share 0.8 pence
(H1 2016: 0.6 pence loss per share).
Seamus Keating, Chairman of Mi-Pay Group plc commented:
"The Board continues to see good progress at all levels in the
Group with increased transaction revenues and margin improvements
supported by continued control of operating costs. This has enabled
us to maintain cash balances above target and continue our focus on
achieving profitability and stronger growth opportunities.
In the period, we secured and extended our existing seven-year
relationship with our largest client for a further three years,
which we expect to drive material revenue growth and profit over
the life of the contract.
This investment, as announced previously, has reduced our
non-recurring Professional Services revenues and the commercial
terms within the new contract, will affect short-term Transaction
Services revenues and margins as we integrate the new services and
grow the transaction volumes. Thereafter we expect this to deliver
long-term revenue and margin growth.
We are proving that our digital payment solutions and commercial
flexibility is increasingly relevant in our market and we are
becoming more important to our clients."
For further information, please contact:
Mi-Pay Group IFC Advisory Zeus Capital
plc Tel: +44 20 3053 Tel: +44 161
Tel: +44 207 8671 831 1512
112 2129 Graham Herring Nick Cowles
Seamus Keating, Tim Metcalfe Jamie Peel
Chairman Heather Armstrong
John Beale, CFO
Founded in 2003, Mi-Pay Group delivers fully outsourced online
and related digital payment solutions to ecommerce clients,
primarily in the mobile sector. Its product offering provides the
infrastructure to enable pre-paid mobile devices to be topped up
via a variety of channels such as websites, mobile applications and
social media applications and customers include Mobile Network
Operators (MNOs) and Mobile Virtual Network Operators (MNVOs).
Mi-Pay sells, integrates and operates its products and solutions on
a global basis. For further information, please visit
www.Mi-Pay.com or contact details as shown above.
Chief Executive Officer's review
H1 2017 Overview
Having delivered continued growth, improved margins and a
reduced cost base consistently over previous periods we are now
focussing on driving long-term growth in our annuity based revenue
solutions.
We continue drive the natural migration of consumers to the
direct, on-line digital sales channel from that of the traditional
retail store 'paper' voucher model and our clients increasingly
recognise this channel as a strategic requirement for growth,
customer retention and real-time communication. Our clients'
digital transformation strategies, alongside financial risk
aversion and an ever increasing cybersecurity risk increases the
attractiveness of Mi-Pay as a partner to help drive this transition
with our flexible, simple and secure outsourced solutions. We
believe that our proven solutions put us in a strong position to
take advantage of this continuing migration trend.
Strategy
"Mi-Pay's solutions connect people and businesses digitally,
transforming customer payment journeys and purchase behavior from
the traditional paper retail environment to instant, digital
delivery".
We make it simple for our clients to integrate and operate
multiple digital payment options for their customers quickly and
securely across the globe. Mi-Pay offers a fully outsourced, secure
payment services platform for instant top up, digital content and
bill payment services with our solutions targeted to improve the
customer buying experience, choice, flexibility and security
primarily for pre-paid customers. Our solutions:-
- increase client revenues;
- reduce customer churn;
- protect against fraud;
- secure customer data; and
- future proof their digital strategies.
Within our market customers continue to move away from
traditional 'in store' purchases towards the use of devices (mobile
phones and tablets) which is driving exponential growth in
mobile-commerce and digital content services. This drives our
natural growth levels with the additional value of ever-increasing
mobile usage of data more than compensating for the reduction in
voice usage, which in turns increases our revenue per transaction.
This creates a clear focus for us in which to invest as we
facilitate and drive this trend.
Operator needs and consolidation - business intelligence, risk
management and customer retention
The European market is increasingly competitive and in recent
years we have seen a number of major integrations between global
operators as they have addressed the need to manage falling margins
at the same time of needing to deliver a wider range of digital
content to customers including data/voice/content/TV/music etc. A
multi-'Omni'-channel digital payment solution supporting this need,
to reach customers is now crucial to their success as they look to
improve customer retention, require an ability to quickly add new
content and increasingly deliver on-demand data services. The
digital channels bring certain benefits, namely the ability to
market directly to customers, and offer multiple ways to connect
and order services instantly at lower cost. Our solutions deliver
the full Omni-channel experience and enable direct marketing,
retention programmes and access to business intelligence. Our
experience in processing over GBP1.1 billion in payment transaction
value makes us a leading expert in the pre-paid services market.
Our ability to indemnify and de-risk both the customer and the
operator creates value in our proposition; crucially we offer the
flexibility and technology to enable our clients who do consolidate
and integrate their platforms to effectively manage this
transition, minimize the risk on the consumer and materially reduce
their cost base.
Digital Content & Payments solutions
Management of flexible data bundles, content packages and
on-line streaming solutions within the pre-pay environment will
drive the growth of the consumer, primarily from their device and
over time, direct voice activated services solutions within the
home. This needs to be integrated with the new influx of 'payment
wallet' solutions and alternative payment methods such as PayPal,
Amazon Payments, Apple Pay and Android Pay as customers look for
secure, 'one-click' payment solutions flexible on all devices. Our
investments in this space are key to our future success providing
simple, integrated order and payment journeys, which support the
payment method of choice for the customer - whilst removing the
risk to the Mobile Operator.
Geographies
Whilst the European market is mature in terms of mobile
ownership our opportunity lies in the customer migration to the
on-line/on-device solutions. In addition, we continue to target
long-term growth in the Asian market. Although traction remains
slower than we had originally anticipated, with over 80% of mobile
users in Asia Pacific being pre-paid customers versus 50% in
Europe, the region is now larger than Europe in terms of mobile
ownership at over 1.8bn users. Our proven ability to deliver risk
free solutions puts us in a strong position to be a first mover in
this market
Security & payment fraud
We have continued to see high profile personal data breaches in
the digital commerce market which forced mobile operators and
retailers to re-evaluate the importance of the protection of their
customers' data; an increasingly complicated and expensive
exercise. Global cybercrime cost the industry over $1 billion in
2015 and global digital payment fraud exceeded $19 billion. The
increasing compliance requirements become more challenging -
increasing PCI accreditation requirements together with the
European General Data Protection Regulation (GDPR), enforceable
from 2018. Our core offering offers a fully segregated
infrastructure, which is compliant with all the global requirements
and delivers in-house payment fraud management. As such, we believe
our solution is valuable to operators and we believe this change in
market dynamics will be beneficial for outsourced solutions like
ours in the longer term and see real opportunities to offer these
services as part of our core-outsourced offering but also as
individual solutions.
Operational Review
Trading
We continue to focus on driving new transactions delivering a
16% increase in total transaction value processed to GBP45.4
million versus GBP39.1 million for the same period in 2016,
continuing our prior year trends of delivering consistent
growth.
Our total revenue reduced to GBP1.5 million (H1 2016: GBP1.6
million) as we targeted annuity based Transaction Services revenues
which we expect will drive longer term revenue and profit growth
for the group over that of our one-time Professional Services
revenues. This focus is seen in our results as we continued to grow
our Transaction Services Revenues in the period (12% since H1 2016)
being offset by a reduction in our Professional Services revenues
to GBP0.2 million for the period (H1 2016: GBP0.4 million). This
investment in driving more strategic relationships with our clients
has now delivered a 3-year extension with our existing largest
client in a competitive bid environment. The new contract will
continue our existing volumes processed but over time add material
incremental growth as we connect to their new infrastructure over
the coming 12 months and integrate their recently acquired new
customer base. This integration will be a core focus and investment
for us over the coming 12 months. Over the life of the contract, we
expect this relationship to contribute to an overall doubling in
total group transaction value processed, compared to the value
processed in 2016. New commercial terms with the Client and our
operational focus on delivery of these solutions will reduce
revenue and margin in the short term; however, we expect this
relationship to de-risk our long-term outlook and deliver long-term
revenue and margin growth.
Across our wider client base, we see increased customer adoption
of our digital solutions, with our customers choosing their devices
to transact using Mobile Apps and Device Optimised Web pages over
traditional Interactive Voice Recognition services and retail, in
store based solutions. In addition, we see a continued increase in
a preference for using mobile wallet payment devices such as PayPal
and Amazon Payments and an increasing requirement for voice
activated services and real time in-store digital solutions. These
will remain core areas for investment over the coming period to
ensure we remain market leading in delivering the most relevant
digital payment solutions.
We have continued to invest in our in-house payment fraud
management solution, also creating a new standalone Fraud as a
Service product. We have again delivered year on year improvements
in our performance, reducing our total fraud as a percentage of
transaction value processed from 0.11% in H1 2016 to 0.04% in H1
2017. In addition, our investment has enabled us to reduce the
volume of 'good' transactions that we reject in this process,
delivering an increase in our overall transaction success rates
from 87% to 89% since H1 2016. These elements combined to drive
increased margin but more importantly increased customer
satisfaction. As part of this investment, we have built the
capability to deliver our internal fraud solution as a direct
service to clients. We are pleased that in H2 2017 we expect to
deliver our first trial with a European client to test this service
which may drive longer term new revenue streams for the group.
Whilst our opportunities in Asia, and specifically the
Philippines remains slow in growing, we have made progress during
the period by delivering new contractual terms with our Client in
the region for a multi-country payment solution. We expect to
deliver this by early 2018. Revenue growth from this relationship
remains uncertain however, we expect this will drive stronger
longer-term relation;ships and incremental growth
opportunities.
Security, stability and digital experience remains at our heart
and the increasing risks that have been seen in the 'cyber
community' in the last 24 months enhances our solutions value to
our clients and their customers. We have continued to see strong
infrastructure and employee stability over the period and we
continue to invest in our data security, again achieving our PCI
DSS (3.2) level 1 accreditation for 2017/ 2018. In addition, we
have enhanced our overall data security proposition with wider data
encryption, not simply payment data, across our whole
infrastructure and enhanced DDOS protection to ensure all of our
client's personal data is better protected, but also to future
proof and protect our clients to the highest level.
Financial Review
Unaudited Unaudited Audited
Six months Six months Year
ended 30 ended ended
June 2017 30 June 31 Dec
GBP 2016 2016
GBP GBP
Payment Transaction Value
Processed 45,385,844 39,051,426 83,404,805
Transaction Services Revenue 1,358,755 1,207,816 2,565,629
Professional Services Revenue 174,182 378,122 713,037
Revenue 1,532,937 1,585,938 3,278,666
------------------------------- ------------ ------------ ------------
Transaction Services Gross
profit 853,388 664,950 1,529,583
Professional Services Gross
profit 117,875 317,563 576,414
Gross profit 971,263 982,513 2,105,997
Gross profit % 63% 62% 64%
------------------------------- ------------ ------------ ------------
Administrative Expenses
/ Research and development (1,139,171) (1,042,506) (2,149,019)
Adjusted Operating profit
/ (loss) (167,908) (59,993) (43,022)
------------------------------- ------------ ------------ ------------
Deferred salaries (unpaid) (45,248) (76,502) (145,504)
Depreciation (60,182) (67,072) (132,564)
Exceptional items (71,717) (50,902) (121,581)
Operating loss (345,055) (254,469) (442,671)
-------------------------------
Cash and cash equivalents
at beginning of period 3,518,217 3,530,154 3,530,154
Cash inflow from management
of client payments 495,129 152,950 297,473
Adjusted Net cash flow from
operating activities(1) (228,329) (131,679) (70,589)
Exceptional items (71,717) (50,902) (121,581)
Capital Expenditure (21,093) (27,113) (51,240)
Cash flow from financing (32,915) (33,000) (66,000)
Cash and cash equivalents
at end of period 3,659,292 3,440,410 3,518,217
Basic and diluted loss per
ordinary share (0.8)p (0.6)p (1.1)p
------------------------------- ------------ ------------ ------------
(1)Adjusted Net cash flow from operating activities excludes
cash flows from the management of client payments and exceptional
items
Our growth in Payment Transaction Value Processed, improved
performance in fraud management and payment optimisation, together
with improving terms with our partners as our volume grows, drove
an increase in our Transaction Services Gross profits by GBP0.2
million adding a further 8% of Transaction Services Gross margin to
63% in the period (H1 2016: 55%). This was offset by the reduction
in one-time Professional Services revenues and subsequent Gross
profit reduction, overall maintaining our Gross profit at GBP1.0
million for the period. However, we believe this approach will
deliver longer-term benefits to the group as our volumes grow,
driven primarily by our new contract.
We continued to manage our administrative expenses, seeing a
small increase since H1 2016 as we invested further in our data
security solution. This led to an increase in adjusted operating
loss for the period to GBP0.2 million (H1 2016: GBP0.1 million)
which was subsequently offset with our GBP0.3 million research and
development recovery in July 2017.
In our balance sheet, as our Payment Transaction Value Processed
increased we saw a GBP0.5 million increase across trade receivables
and cash since December 31 2016 related to amounts due to our
clients offset by an equal increase in Client payables. Outside of
our client related transactions, there are no material movements to
report in our balance sheet and our working capital requirements
remain minimal due to our business model of collecting payments at
source. Cumulative amounts due to Directors for deferred salaries
unpaid closed the period at GBP0.3 million and we closed the period
expecting to recover GBP0.4 million in cash for research and
development tax credits due for the 18-month period to June 2017,
GBP0.3 million of which was fully paid in July 2017.
The Group ended the period with GBP3.7 million in cash and cash
equivalents (GBP3.5 million at 31 December 2016), noting that of
this balance, GBP2.9 million related to the operation of managing
client payments (GBP2.4 million as at 31 December 2016). Excluding
the client related cash movements our cash outflow was GBP0.4
million in the period, which included GBP0.1 million outflow
related to capital expenditure and infrastructure lease payments
and GBP0.1 million expenditure on reviewing potential merger and
acquisition opportunities. Our core trading therefore showed an
outflow of GBP0.2 million for the period, against which we
subsequently received a cash inflow of GBP0.3 million for research
and development tax credits relating to the 12-month period to 31
December 2016, in July 2017.
Employees
We recognise that the performance achieved in this period would
not have been possible without the support and continued dedication
of our staff. They continue to support our delivery model and
enhance our solutions to our clients, support the strong
transaction growth and develop and deliver improved, secure
technologies. They are our most valuable resource and we would like
to thank them for their efforts and stability they give to the
group. We encourage a strong, innovative culture encourage
communication and as a result maintain a very high retention of
employees.
Outlook
Mi-Pay has made significant progress in the period by delivering
material new long-term annuity based sales opportunities with
existing clients, a new contract in Asia Pacific and a new fraud
solution trial. When combined with the continued natural migration
of consumers to our digital channels and the strong gross margins
we are delivering, we expect these will underpin our progress to
profitability, cash generation and significantly de-risk our
long-term outlook. The delivery of these new opportunities is our
focus for the coming period.
We will continue to invest in our fraud management capabilities,
data security solutions and enhancing our global infrastructure -
specific focus in H2 2017 on implementing the best data protection
and GDPR standards. In addition we will continue to develop of our
mobile device and digital payment solutions that underpin the
continued growth of our client solutions.
For the full year, we expect transaction value processed to be
in the region of GBP95 million (2016: GBP83.4 million) but expect
stronger growth to in 2018 through our existing contractual
arrangements. Together with our current visibility of professional
services projects, we expect total revenue for 2017 in the range of
GBP3.1-3.4 million with gross profits expected to be in line with
those experienced in H1 2017. Our research and development cash
credit received in July 2017 more than offset the adjusted
operating loss for the period giving the group the stability to
continue to invest and grow.
The Board remains confident that our total market opportunity
continues to increase as the digital payments market expands
globally and our solutions become increasingly relevant to a wider
set of customers, geographies and vertical markets. Our growing
relationship with all of our clients and broader solutions keeps us
in a strong position to take advantage of this consumer trend. The
key market of Asia and other content and pre-pay markets outside of
Mobile operators, together with a wider set of security and fraud
management solutions remain opportunities to invest in, and ones
that we will look to deliver further growth for us over the longer
term.
Michael Dickerson Seamus Keating
CEO Chairman
Consolidated Statement of Comprehensive Income
For the period of six months ended 30 June 2017
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec
2017 2016 2016
Note GBP GBP GBP
------------------------------ ----- --------------------------- ------------ ------------
Payment Transaction
Value Processed 45,385,844 39,051,426 83,404,805
Transaction Services
Revenue 1,358,755 1,207,816 2,565,629
Professional Services
Revenue 174,182 378,122 713,037
------------------------------ ----- --------------------------- ------------ ------------
Revenue 1,532,937 1,585,938 3,278,666
------------------------------ ----- --------------------------- ------------ ------------
Cost of sales (561,674) (603,425) (1,172,669)
------------------------------ ----- --------------------------- ------------ ------------
Gross profit 2 971,263 982,513 2,105,997
Administrative expenses
------------------------------ ----- --------------------------- ------------ ------------
General and administration (1,027,914) (1,014,919) (1,699,551)
Research and development (156,505) (104,089) (594,972)
Depreciation (60,182) (67,072) (132,564)
Exceptional items 3 (71,717) (50,902) (121,581)
------------------------------ ----- --------------------------- ------------ ------------
Total administrative
expenses (1,316,318) (1,236,982) (2,548,668)
Operating loss (345,055) (254,469) (442,671)
Finance income 70 1,791 3,492
Finance expense (17) (30) (67)
------------------------------ ----- --------------------------- ------------ ------------
Loss before taxation (345,002) (252,708) (439,246)
Taxation - - -
------------------------------ ----- --------------------------- ------------ ------------
Loss for the period/year (345,002) (252,708) (439,246)
------------------------------ ----- --------------------------- ------------ ------------
Other Comprehensive
expense for the year
Exchange differences
on translation of foreign
operations 4,405 (645) 88
Loss and total comprehensive
expense for period
attributable to the
owners of the parent (340,597) (253,353) (439,158)
------------------------------ ----- --------------------------- ------------ ------------
Basic and diluted loss
per ordinary share 4 (0.8)p (0.6)p (1.1)p
------------------------------ ----- --------------------------- ------------ ------------
The notes on pages 10 to 12 form part of these financial
statements.
Consolidated Statement of Financial Position
As at 30 June 2017
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec
2017 2016 2016
Note GBP GBP GBP
------------------------------- ----- ------------- ------------- -------------
ASSETS
Non-current assets
Property, plant and
equipment 137,646 218,101 176,735
Total non-current assets 137,646 218,101 176,735
Current assets
Trade and other receivables 5 943,216 772,411 897,190
R&D tax credit receivable 357,363 374,375 220,000
Cash and cash equivalents 3,659,292 3,440,410 3,518,217
Total current assets 4,959,871 4,587,196 4,635,407
Total assets 5,097,517 4,805,297 4,812,142
------------------------------- ----- ------------- ------------- -------------
LIABILITIES
Current liabilities
Trade and other payables 6 (4,733,808) (3,849,186) (4,074,921)
Obligations under finance
lease (66,000) (66,000) (66,000)
------------------------------- ----- ------------- ------------- -------------
Total current liabilities (4,799,808) (3,915,186) (4,140,921)
Non-current liabilities
Obligations under finance
lease - (66,000) (32,915)
------------------------------- ----- ------------- ------------- -------------
Total non-current liabilities - (66,000) (32,915)
Total liabilities (4,799,808) (3,981,186) (4,173,836)
------------------------------- ----- ------------- ------------- -------------
Net assets 297,709 824,111 (638,306)
------------------------------- ----- ------------- ------------- -------------
Equity
Share capital 4,159,324 4,159,324 4,159,324
Share premium 1,403,923 1,403,923 1,403,923
Share options reserve 624,729 624,729 624,729
Reverse acquisition
reserve 6,920,115 6,920,115 6,920,115
Merger reserve 6,808,742 6,808,742 6,808,742
Retained deficit (19,619,124) (19,092,722) (19,278,527)
------------------------------- ----- ------------- ------------- -------------
Total equity attributable
to the equity shareholders
of the parent 297,709 824,111 638,306
The notes on pages 10 to 12 form part of these financial
statements.
Michael Clay Dickerson
Chief executive officer
Consolidated Statement of Cash Flows
For the period of six months ended 30 June 2017
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec
2017 2016 2016
Note GBP GBP GBP
--------------------------------- ------ ------------ ------------ ----------
Cash flows from operating
activities
Loss before tax from
continuing operations (345,002) (252,708) (439,246)
----------------------------------------- ------------ ------------ ----------
Adjusted for:
Depreciation 60,182 67,072 132,564
Finance income (70) (1,791) (3,492)
Finance expense 17 30 67
R&D credits (137,363) (170,808) (308,710)
(Increase) / decrease
in trade and other receivables (41,621) (48,632) (172,855)
Increase / (decrease)
in trade and other payables 658,887 375,445 601,180
Adjusted profit/(loss)
from operations after
changes in working capital 195,030 (31,392) (190,492)
Interest received 70 1,791 3,492
Interest paid (17) (30) (67)
Corporation tax (paid)/received
(inc R&D credits) - - 292,370
Net cash flows from
operating activities 195,083 (29,631) 105,303
Cash flows from investing
activities
Purchase of property,
plant and equipment (21,093) (27,113) (51,240)
Net cash flows from
investing activities (21,093) (27,113) (51,240)
Cash flows from financing
activities
Proceeds from issue - - -
of share capital, net
of issue costs
Finance lease payments (32,915) (33,000) (66,000)
Net cash flows from
financing activities (32,915) (33,000) (66,000)
Net increase / (decrease)
in cash and cash equivalents 141,075 (89,744) (11,937)
Cash and cash equivalents
at beginning of period 3,518,217 3,530,154 3,530,154
----------------------------------------- ------------ ------------ ----------
Cash and cash equivalents
at end of period 3,659,292 3,440,410 3,518,217
----------------------------------------- ------------ ------------ ----------
Consolidated Statement of Changes in Equity
For the period of six months ended 30 June 2017
Share Reverse
For the period ended 30 Share Share options acquisition Merger Retained
June 2017 capital premium reserve reserve reserve deficit Total
GBP GBP GBP GBP GBP GBP GBP
----------------------------- ---------- ---------- --------- ------------- ---------- ------------- ----------
At 1 January 2017 4,159,324 1,403,923 624,729 6,920,115 6,808,742 (19,278,527) 638,306
Loss for the period from
continuing operations - - - - - (345,002) (345,002)
----------------------------- ---------- ---------- --------- ------------- ---------- ------------- ----------
Other comprehensive expense
for the period - - - - - 4,405 4,405
At 30 June 2017 4,159,324 1,403,923 624,729 6,920,115 6,808,742 (19,619,124) 297,709
============================= ========== ========== ========= ============= ========== ============= ==========
Consolidated Statement of Changes in Equity
For the period of six months ended 30 June 2016
Share Reverse
For the period ended 30 Share Share options acquisition Merger Retained
June 2016 capital premium reserve reserve reserve deficit Total
GBP GBP GBP GBP GBP GBP GBP
----------------------------- ---------- ---------- --------- ------------- ---------- ------------- ----------
At 1 January 2016 4,159,324 1,403,923 624,729 6,920,115 6,808,742 (18,839,369) 1,077,464
Loss for the period from
continuing operations - - - - - (252,708) (252,708)
----------------------------- ---------- ---------- --------- ------------- ---------- ------------- ----------
Other comprehensive expense
for the period - - - - - (645) (645)
At 30 June 2016 4,159,324 1,403,923 624,729 6,920,115 6,808,742 (19,092,722) 824,111
============================= ========== ========== ========= ============= ========== ============= ==========
Consolidated Statement of Changes in Equity
For the year ended 31 December 2016
Share Reverse
For the year ended 31 Share Share options acquisition Merger Retained
December 2016 capital premium reserve reserve reserve deficit Total
GBP GBP GBP GBP GBP GBP GBP
----------------------------- ---------- ---------- --------- ------------- ---------- ------------- ----------
At 1 January 2016 4,159,324 1,403,923 624,729 6,920,115 6,808,742 (18,839,369) 1,077,464
Loss for the year from
continuing operations - - - - (439,246) (439,246)
----------------------------- ---------- ---------- --------- ------------- ---------- ------------- ----------
Other comprehensive expense
for the period - - - - - 88 88
At 31 December 2016 4,159,324 1,403,923 624,729 6,920,115 6,808,742 (19,278,527) 638,306
============================= ========== ========== ========= ============= ========== ============= ==========
Notes to the Financial Information
1 Basis of preparation
The unaudited consolidated half-yearly financial information in
this report has been prepared on the basis of the accounting
policies expected to apply for the financial year to 31 December
2017 and in accordance with recognition and measurement principles
of International Financial Reporting Standards (IFRSs) as endorsed
by the European Union. The accounting policies applied in the
preparation of this half-yearly financial information are
consistent with those used in the financial statements for the year
ended 31 December 2016. This interim report has not been reviewed
by the Group's auditors, and does not constitute statutory accounts
within the meaning of the Companies Act 2006. The financial
information for the six months ended 30 June 2017 and 30 June 2016
is not audited.
The financial information contained in this document does not
include all of the information required for full annual financial
statements and do not comply with all of the disclosures in IAS34
'Interim Financial Reporting'. Accordingly whilst this financial
information has been prepared in accordance with IFRS they cannot
be construed as being in full compliance with IFRS.
The financial information for the year ended 31 December 2016
does not constitute the full statutory accounts for that period.
The Annual Report and Accounts for 31 December 2016 have been filed
with the Registrar of Companies. The Independent Auditors' Report
on the Annual Report and Accounts for 2016 was unqualified and did
not include references to any matters which the auditors drew
attention to by way of emphasis without qualifying their report and
did not contain statements under Section 498(2) or 498(3) of the
Companies Act 2006.
2 Segmental analysis
The chief operating decision maker has been identified as the
Chief Executive Officer (CEO) of the group. The chief operating
decision maker is responsible for regularly assessing the
performance of the group's operating segments and performing the
function of allocating resources. To assist the chief operating
decision maker in this process, internally generated reporting is
prepared for each operating segment.
The group has two operating segments that it reports on. These
operating segments are:
-- Transaction Services Revenues: This segment generates revenue
from the processing of transactions on behalf of clients and is
Mi-Pay Group plc's core business.
-- Professional Services Revenues: This segment generates
revenue from the development, delivery and hosting of our platform
and client solutions.
The CEO assesses the performance of the operating segments based
on revenue and gross profit. The CEO uses these measures to assess
performance because they are quick to analyse and directly relevant
to evaluating the results of each segment. (1)
Both segments are continuing operations and results are as
follows:
Operating Segments
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec
2017 2016 2016
GBP GBP GBP
Payment Transaction Value
Processed 45,385,844 39,051,426 83,404,805
Transaction Services
Revenue 1,358,755 1,207,816 2,565,629
Professional Services
Revenue 174,182 378,122 713,037
------------ ------------ -----------
Total revenue 1,532,937 1,585,938 3,278,666
Transaction services
cost of sales 505,367 542,866 1,036,046
Professional services
cost of sales 56,307 60,559 136,623
------------ ------------ -----------
Total cost of sales 561,674 603,425 1,172,669
Transaction services
gross profit 853,388 664,950 1,529,583
Professional services
gross profit 117,875 317,563 576,414
------------ ------------ -----------
Total gross profit 971,263 982,513 2,105,997
============ ============ ===========
Transaction services
gross profit 63% 55% 60%
Professional services
gross profit 68% 84% 81%
------------ ------------ -----------
Total gross profit 63% 62% 64%
============ ============ ===========
(1) There is no inter segment trading and assets and liabilities
are not allocated to segments.
3 Exceptional items
The exceptional item recognised in the six-month period to 30
June 2017 reflects costs that, in the opinion of the board of
directors, are non-recurring as they relate to professional fees
incurred on continued review of merger and acquisition
opportunities.
4 Loss per share
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec
2017 2016 2016
GBP GBP GBP
----------------------- ------------ ------------ -----------
Loss for the year (345,002) (252,708) (439,246)
Weight-average shares
outstanding (number) 41,593,229 41,593,229 41,593,229
----------------------- ------------ ------------ -----------
Basic EPS (0.8)p (0.6)p (1.1)
Diluted EPS (0.8)p (0.6)p (1.1)
======================= ============ ============ ===========
The numerators shown above represent the total loss from
continuing operations for the period or year.
Since the Group was in a loss making position for all three
periods presented, there was no difference between the weighted
average number of shares used to calculate basic and diluted net
loss per share.
5 Trade and other receivables
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec
2017 2016 2016
GBP GBP GBP
Trade receivables 81,657 132,226 88,786
Less: provision for impairment
of trade receivables - - (8,670)
------------ ------------ --------
Trade receivables - net 81,657 132,226 80,116
Client receivables 699,295 490,243 642,922
Prepayments 114,534 117,877 74,194
Other receivables 47,730 32,065 99,958
------------ ------------ --------
Total trade and other
receivables 943,216 772,411 897,190
============ ============ ========
6 Trade and other payables
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec
2017 2016 2016
GBP GBP GBP
Trade payables 291,107 256,214 186,343
Client payables 3,639,129 2,822,383 3,095,022
Accruals 347,187 393,661 367,167
Deferred income 20,138 62,038 15,408
Other payables - tax
and social security payments 40,239 44,565 57,885
Deferred directors' emoluments 327,001 213,504 281,259
Other Payables 69,007 56,821 71,837
------------ ------------ ----------
Total trade and other
payables 4,733,808 3,849,186 4,074,921
============ ============ ==========
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UVRARBKAKUUR
(END) Dow Jones Newswires
September 26, 2017 02:01 ET (06:01 GMT)
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