SafeCharge International Group Ltd Pre-close trading update (5488U)
January 19 2017 - 2:00AM
UK Regulatory
TIDMSCH
RNS Number : 5488U
SafeCharge International Group Ltd
19 January 2017
SafeCharge International Group Limited
('SafeCharge,' the 'Company' or the 'Group')
Pre-close trading update
SafeCharge (AIM:SCH), the global provider of payments services,
technologies and risk management solutions for online and mobile
businesses, provides the following update as it enters its closed
period ahead of announcing its results for the year ended 31
December 2016.
The Group generated record transaction processing volumes and
revenues during Q4 following management's focus on winning Tier 1
customers, including PaddyPower Betfair, Sun Bingo, Sisal and
Nayax, all of which were launched in the second half. This
outstanding performance followed a quieter Q3.
Management expects to report 2016 Adjusted EBITDA* in the range
of US$33m - US$34m (approximately US$34.5 - US$35.5m on a constant
currency basis**).
The Board reiterates its expectation that the full year dividend
will total 75% of Adjusted EBITDA* for the period. Management
expects to report that the Group closed the year with more than
US$124m of cash and short term investments and continues to be
debt-free.
During 2016 the Group committed substantial resources to its
business in response to:
-- anticipated changes in its regulatory and commercial
environment
-- evolving customer requirements; and
-- its strategy to develop sustainably high quality,
low risk revenues from a diversified customer
base.
This activity included reshaping its customer base, diversifying
into new sectors and geographic markets; and making its first moves
into card-present and land-based payments acquiring.
The Company has successfully attracted high quality senior
managers from well-established businesses in the payments sector to
meet the changing requirements of current and future customers in
new sectors and geographies. These new team members are helping the
Group win sustainable, high quality business in both existing and
target commercial e-commerce verticals and geographies.
The Group's businesses are already seeing the benefits of its
strategy and investment, with further Tier 1 wins in core sectors;
new and growing customers in Romania, Italy and Portugal; the
on-going global roll-out of the Company's first airline customer;
and the Group's first card-present customers driving substantial
daily transaction volumes through SafeCharge's payments and
acquiring platforms.
SafeCharge's Chief Executive, David Avgi, said:
"Since listing the Group nearly three years ago we have rapidly
developed the scope and scale of our business, enabling us to start
2017 with the ability - and appetite - to aggressively compete for
a greater share of Tier 1 customers across multiple e-commerce
verticals and geographic markets.
"At the same time as achieving a strong financial performance,
including paying substantial dividends to shareholders, we have
maintained an acute awareness of what it will take to continue
being successful as our markets evolve and customer needs
change.
"I am excited by the challenges and valuable opportunities ahead
of us and believe that we are ideally positioned to sustainably
grow the business."
The Company remains confident that its focus on higher quality
earnings from its healthy pipeline will yield continued revenue
growth during 2017, building profitable momentum into 2018.
*Adjusted EBITDA is calculated after adding back certain
non-cash charges and cash expenses including professional costs in
relation to acquisitions, restructuring costs and terminated
projects.
** Results stated on a constant currency basis, a non-IFRS
measure, are calculated by applying the average exchange rate of
the comparable period in the prior year to current period local
currency results.
- Ends -
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Enquiries
SafeCharge International
Group Limited
Tim Mickley
David Avgi +44 (0) 20
c/o Bell Pottinger 3772 2500
Shore Capital
Mark Percy +44 (0) 20
Toby Gibbs 7408 4090
Bell Pottinger
David Rydell
Olly Scott +44 (0) 20
Anna Legge 3772 2500
About SafeCharge
SafeCharge International Group Limited is a global provider of
payments services, technologies and risk management solutions for
online and mobile businesses. The SafeCharge group has a
diversified, blue chip client base and is a trusted payment partner
for customers from various e-commerce verticals. SafeCharge has
been Payment Card Industry Data Security Standard ("PCI-DSS") Level
1 certified since 2007 and is listed on the London Stock Exchange
AIM market (LSE: SCH). The Company's wholly owned subsidiary,
SafeCharge Limited, is an authorized Electronic Money Institution
regulated by the Central Bank of Cyprus and a principal member of
MasterCard Europe and VISA Europe. The SafeCharge group has
operations in the UK, Cyprus, Bulgaria, Israel, Germany, Austria
and Ireland.
http://www.safecharge.com/
This information is provided by RNS
The company news service from the London Stock Exchange
END
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