Mi-Pay Group PLC Trading Update (4550O)
January 30 2019 - 2:00AM
UK Regulatory
TIDMMPAY
RNS Number : 4550O
Mi-Pay Group PLC
30 January 2019
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014. Upon the publication
of this announcement via Regulatory Information Service, this
inside information is now considered to be in the public
domain.
30 January 2019
Mi-Pay Group plc
("Mi-Pay", the "Group" or the "Company")
Trading Update
Mi-Pay (AIM: MPAY), the leading provider of outsourced digital
transformation and mobile payment solutions, is pleased to provide
a trading update for the year ended 31 December 2018.
Highlights
- Trading for the year was in-line with market expectations,
with increased year-on-year revenues.
- Group operated profitably before interest, tax and
depreciation in the second half of the year.
- Increased payment transaction values processed to GBP106
million during the year (2017: GBP94 million).
- Full year operating loss reduced to GBP0.2m (2017: GBP0.6m loss).
Trading update
Trading for the year ended 31 December 2018 was in line with
market expectations, with total revenue for the year expected to be
GBP3.3 million (2017: GBP3.0 million). The Company has continued to
experience strong growth in transactions, delivering an increase in
payment transaction values processed during the year to GBP106
million (2017: GBP94 million). In addition, the Company
successfully indemnified over GBP43 million of payment transactions
for fraudulent activity during the period, using its proprietary
payment fraud solution, resulting in new revenue of GBP0.3 million
for the Group. This was achieved whilst maintaining high payment
success rates and low fraud levels, which is expected to maintain
gross margins of above 60% for the year.
The Company has also delivered further year-on-year reductions
in administrative expenses which, when combined with the revenue
growth, is expected to result in a reduction in operating loss to
GBP0.2 million (2017 operating loss: GBP0.6 million). During the
six-month period to 31 December 2018, Mi-Pay delivered a profit
before interest, tax and depreciation.
The Company's cash position at 31 December 2018 increased to
GBP3.5m from GBP2.9m as at 31 December 2017 due to the increase in
payment transactions processed. GBP2.9m of this balance related to
the management of client payments. The closing cash position as at
31 December 2018, excluding client payment balances was GBP0.6m,
equivalent to the closing 2017 balance.
Appointment of CFO on a part-time basis
On 29 January 2019, the Company appointed Andrew Bowen as Chief
Financial Officer on a part-time basis (a non-Board role) to
support the Board and management team in its governance and
development. Andrew has previously held finance director roles at a
number of technology telecommunications businesses. He is a
Principal with the FD Centre Ltd and his services are supplied
under contract with that company.
Michael Dickerson, Chairman of Mi-Pay, commented: "Delivering
underlying profitability in the second half of 2018 was a key
target for Mi-Pay and we are pleased to have achieved this
important milestone. The improved performance seen in H2 2018 was a
result of delivering a new revenue channel for payment fraud
management through the leverage of our in-house technology, a
continuing reduction of our operating cost base and strong growth
across our existing clients. We expect to see this growth continue
as the e-commerce and digital channels increasingly become our
clients' core strategic focus for customer engagement and our new
fraud management services continue to expand."
For further information please contact:
Mi-Pay Group plc IFC Advisory Allenby Capital Limited
Tel: +44 207 112 Tel: +44 203 053 8671 Tel +44 203 328 5656
2129
Michael Dickerson, Graham Herring James Reeve
Chairman
John Beale, CEO Tim Metcalfe Asha Chotai
Heather Armstrong
About Mi-Pay Group
Founded in 2003, Mi-Pay Group plc delivers fully outsourced
online and related payment and fraud management solutions to
digital ecommerce clients, primarily in the mobile and digital
content 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), additionally managing
and indemnifying the data security and payment fraud risks. 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.
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END
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