TIDMEPO
RNS Number : 4524N
Earthport PLC
26 October 2016
26 October 2016
Earthport plc
("Earthport", the "Company" or the "Group")
Final Results
Earthport (AIM: EPO.L), the leading payment network for
cross-border payments, is pleased to announce its final results for
the year ended 30 June 2016.
Financial Highlights
-- Revenues increased 18% to GBP22.8 million, within the range
referenced at the Capital Markets Day held on 27 April 2016
(available at www.earthport.com/investors)
-- Transactional revenues comprised approximately 91% of total revenue
-- Adjusted gross margin of 70% resulting in adjusted gross profit of GBP15.9 million*
-- Gross margin of 67.4% after impact of warrant charge,
resulting in gross profit of GBP15.3 million
-- Cash and cash equivalents at 30 June 2016 of GBP14.4 million
and consistent with guidance at the Capital Markets Day
* Impacted by elevated transaction costs related to building
resilience of the Earthport network.
Operational and Transactional Highlights
-- Payment volume increased to more than $11 billion, 64% increase versus prior financial year
-- Record number of transactions at 6.6 million, 89% increase versus prior financial year:
o June 2016 set a record for number of transactions in a single
month - a run rate of 8.5M transactions
-- Average revenue per transaction of GBP3.12
-- Gaining traction with European-based global Banks:
o Experiencing increasing transaction volumes and multiple
engagements with existing clients
o Large eCommerce provider now live in three markets and already
a top five client by volume. Additional markets in discussion
-- US Markets:
o Substantially completed integration of a current client's core
payment processing platform into Earthport's network. This is a top
10 global Bank
o Anticipated grant of state licensing in North America will
accelerate growth in this sector
-- Emerging Markets:
o Contracted with major Japanese Bank and Signed Memorandums of
Understanding with major Banks in India, Indonesia and other
markets
o Engaged with Regulators in multiple countries, expecting
approvals in key Asian markets to originate 'out-bound'
business
-- Earthport subsidiary, Baydonhill, rebranded and relaunched as
EarthportFX, aligning the business with Earthport's core model, and
expanding its services to corporate clients
-- Advancement of Distributed Ledger ("DL") Strategy with
Earthport executing the first cross-border transaction via DL by a
major financial Institution on behalf of a large European Bank
-- John B. McCoy, retired Chairman and CEO of Bank One (merged
with JPMorgan Chase in 2004), joined the Board in February 2016
Post-Period Highlights
-- Baydonhill Earnout - Amendment to CVR Deed
o On 19 October 2016 (see RNS 8882M), Earthport announced that
an Amendment was agreed by Earthport and the CVR Committee
regarding the contingent consideration in response to the impact of
the February loss at Baydonhill ("Loss Incident"), as announced on
25 February 2016 (see RNS 1396Q), in accordance with the terms of
the ("Original Agreement"). Both parties have agreed that, the
aggregate free-cash-flow figure used to calculate the current CVR
Entitlement will bear a partial impact of the GBP5 million
Baydonhill loss resulting from the Loss Incident and the amended
CVR Entitlement shall be a maximum of GBP2,295,400. As a result of
the Amendment, approximately GBP700,000 in cash will be returned to
Earthport from an escrow account established and funded for meeting
its obligations under the Original Agreement.
-- Strong Entry into FY17
o The Company is executing on its strategic plan and budget for
FY17, and is tracking to expectations in key areas. During the
first 3 months of FY17, Earthport achieved the following;
- Processed 2.3 million in Transactions, GBP2.9 billion in Payment Volume
- Number of transactions increased 91% over same period in FY16
- Payment Volume increased 110% over same period in FY16
o Total revenues increased 34% from the same period in FY16 with
transactional revenues comprising 95% of total revenues
o Regional Revenue and New/Existing Clients Mix consistent with
expectations and in line with FY16 mix
Hank Uberoi, CEO of Earthport, commented: "The changes in the
payments landscape are picking up speed, driven by trade and
business flows and the impact of regulations. Earthport is well
positioned to act as a facilitator of change in the cross-border
payment market.
We continue to develop the world's leading cross-border payments
platform; to provide our clients with access to a network that
reaches any bank account, in any currency, through one connection
with world-class compliance, resilience, trust and cost
optimisation.
The investments made during FY16 have improved traction with key
European and North American banks and business enterprises, with
volume growth continuing into the first quarter with a healthy
pipeline. We remain positive regarding the growth prospects for
Earthport and believe we have the potential to build and hold a
significant share of the multi-trillion dollar cross-border
payments market.
We are committed to meeting market forecasts for the 2017 fiscal
year and achieving our target of becoming cash flow positive during
the fourth quarter of the financial year."
For further information, please contact:
Earthport plc 020 7220 9700
Hank Uberoi, Chief Executive Officer
Simon Adamiyatt, Chief Financial Officer
Newgate 020 7653 9848
Bob Huxford / Helena Bogle
020 7653 9848
Panmure Gordon (Nominated Adviser and Joint Broker) 020 7886 2500
Dominic Morley / Fabien Holler / Charles Leigh-Pemberton
N+1 Singer (Joint Broker) 020 7496 3000
Mark Taylor / James White
Shore Capital (Joint Broker) 020 7408 4090
Bidhi Bhoma/ Toby Gibbs
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ('MAR'). Upon the
publication of this announcement via Regulatory Information Service
('RIS'), this inside information is now considered to be in the
public domain.
Chairman's Statement
The 2016 financial year has been challenging for a number of
reasons: volatile market conditions surrounding Brexit, increasing
regulatory scrutiny, slower than expected growth and the unforeseen
loss of GBP5 million within our subsidiary, EarthportFX (formerly
Baydonhill).
Our financial performance was impacted negatively by those
internal and external events leading management to revise
expectations for revenue, costs and cash position as we announced
at our Capital Markets Day in April 2016. I am therefore pleased to
report that, despite these challenges, we increased revenues by 18%
during the year and we are confident that the strategy we have
embarked upon and changes within our management team will lead to
further substantial revenue growth in the current year.
Following the fraud incident at Earthport's FX subsidiary,
Baydonhill, an internal investigation was initiated and
concurrently amended controls were applied across the Baydonhill
portfolio to ensure losses were finite and any exposure curtailed.
A number of parallel engagements were initiated including an
independent investigation, the findings of which supported the
early assumption of fraud. A formal claim remains extant as we
pursue all potential avenues of recovery.
The emphasis on compliance, both internally and externally, has
always been a central pillar of the Earthport culture and a key
competitive differentiator. In order to develop relationships with
our major banking customers, we have to comply with the many
rigorous international compliance regimes that they operate under
and we are proud of the extremely high standards we apply. As a
result, we routinely decline opportunities that do not measure up
to our compliance standards and we will not jeopardise key
relationships purely to build short-term volume. Further
information on the risk and regulatory aspects of our business can
be found in the Risk Management section of the
Annual Report.
The highly regulated environment here in the UK and in most of
the jurisdictions in which we operate is undoubtedly increasing the
complexity for Earthport and our customers. There are two major
impacts of this development. Firstly, we are increasingly having to
improve our resilience in a number of our network corridors while
maintaining much greater interaction with these foreign settlement
banks. Secondly, our major banking clients are finding difficulties
in their own relationships in certain countries, and increasingly
they are approaching us to handle more of their business in
selective routes. These challenges further highlight the
significant value that the Earthport model brings to clients by
providing a solution to these complexities.
We now have a presence in London, New York, Singapore, Miami and
Dubai. A key function of these offices is to maintain the close
relationships with our corresponding banking partners and also
further extend the relationship by motivating them to use our
network for their outbound cross-border payments. Having people on
the ground in these regions is of immense importance to help
develop and maintain our international network.
Our focus in the coming financial year is, as planned, to
leverage our existing clients and harvest the investment we have
made in developing these relationships. The business remains
committed to meeting stated expectations for the coming year, with
the objective that we will attain cashflow break-even during Q4
FY17.
During the year, there were a number of changes at the Board and
executive level. In February 2016, we were delighted to welcome
John McCoy to the Board who retired as Chairman and Chief Executive
Officer of Bank One Corporation, the fourth largest bank in the US
at the time. His successful banking background in the United States
coupled with his extensive network of contacts, will provide a new
dimension to our business.
Also in June, Chris Cowlard left us after five years of service
as Chief Operating Officer as well as Executive Director. We wish
him well in his new career. Daniel Marovitz, who joined the Company
in 2015, has stepped into the Chief Operating Officer role and I am
confident that his extensive knowledge and experience will add
considerable value to the Company.
In May, Mohit Davar stepped down as a Non- Executive Director
and the Board offers him its sincere thanks for the contribution he
made during his tenure.
I would stress that we are always sympathetic and empathetic to
the positions of all our stakeholders and appreciate the financial
performance to date has been below expectations. I do offer our
sincere thanks for the patience that they have shown over the years
but look forward to demonstrating that the strategy we are
following continues to be right for the complex nature of our
business.
Finally, I would like to extend my gratitude to the management
team and all the staff who continue to work tirelessly to help
Earthport achieve its undoubted potential.
Chief Executive's Statement
Despite the 2016 financial year presenting a number of
challenges, we have grown revenues and expanded as a business and
we are positive regarding the further growth prospects of the
Company.
During this challenging year, we have managed to continue to
build and solidify our strong positioning in the cross-border
payments market as we are uniquely positioned in the rapidly
changing global payments eco-system.
We are committed to meeting market forecasts for the 2017
financial year and achieving our target of becoming cashflow
positive during the fourth quarter of the current financial year.
Everything we do across the firm will be carried out with these
commitments in mind and, as such, we are very focused on our costs.
Our aim is to have a lean and efficient organisation aligned with
the business opportunity.
Our focus for 2017 financial year will be on harvesting
relationships with key clients in order to fully reap the benefits
from the investments we have made in them and our wider network.
The investments in our expanded local presence in several regions
during 2016 are already beginning to bear fruit and we are better
able to support our global network as well as capture emerging
opportunities with our clearing network partners.
Earthport is very well positioned to act as a facilitator of
change within its market as greater regulatory scrutiny and
complexity, diminishing margins and increasing competition are
currently weighing heavily on the incumbents.
Furthermore, as expanding business and trade flows and
geopolitics alter the landscape of the cross-border payments world,
there is a growing imperative to construct an appropriate and
effective system using a new model, such as that provided by
Earthport, which can facilitate the flow of global payments.
We have set forth, and are continuing to execute towards, a plan
to be the leading cross-border payments network.
In order to meet the demands of our customers, who are financial
institutions and business enterprises, Earthport is forging the
path for a new breed of intermediary that sits between a new
profile of demand driven by global trade and online commerce and
the banks that wish to service this demand, delivering high levels
of efficiency, reliability and transparency.
Partnerships between the financial technology sector, dynamic
payment providers and traditional banks born from models such as
ours can create compelling and exciting offerings that reap
benefits for all parties. No other non-bank cross-border payment
company has achieved Earthport's acceptance across industry
segments that include global banks, eCommerce enterprises, as well
as traditional and emerging money transfer companies.
FY16 Highlights
Financial and Transactional Highlights
While clearly lower than what we expected at the start of the
year, we are pleased to have delivered 18% revenue growth during
the year, in line with the projections stated at our Capital
Markets Day on 27 April 2016. In addition, we have delivered growth
both in the number of transactions we have completed and our
payment volumes; two critical Key Performance Indicators for our
business. We have seen a strong start to FY17 and remain on track
to meet our target to become cashflow positive during Q4 2017.
In FY16, our revenues were GBP22.8 million with transactional
revenues comprising approximately 91% of the total. The increasing
contribution of transactional revenues to overall revenues,
compared to the prior years, is a testament to the improving
quality of our revenues even as revenue growth rates follow a
slower trajectory than transaction growth rates. As we gain scale,
it is our expectation that revenue growth rates will approach
transaction growth rates. Our adjusted gross margin was
approximately 70%, with an adjusted gross profit of GBP15.9
million. Gross margin was 67.4% after impact of warrant charge,
resulting in a gross profit of GBP15.3 million. The revenue mix by
region has remained relatively stable, with Europe contributing
approximately 75% of the revenues, North America 22% and the rest
of the world the remaining 3%. We expect this mix to evolve as our
business outside of Europe matures.
Our client mix is evolving in line with our long-term strategy
of strengthening our presence in a number of industries including
banking, traditional and 'challenger' money transfer organisations,
international payment companies, gaming and some of the most
prominent eCommerce brands and service providers. Our payment
transactions have followed a strong upwards trajectory. The number
of transactions processed by our platform reached 6.6 million, up
89%, whereas the payment volume was over $11 billion presenting an
increase of 64% over the previous year. The first months of FY17
are continuing at a similar pace and we expect good growth during
the year.
Business Development Highlights In line with our growth
strategy, we continue to diversify and grow our client base across
industries and geographies. Our commitment to our clients to be a
utility solution provider, as we respect their request to remain
unnamed, shapes our engagement with them. Our payment solutions
have been adopted by a number of leading market participants,
across industries, including:
-- 6 out of the top 25 global banks
-- 9 of the top traditional and emerging Money Transfer Organisations
-- 7 of the key 'challenger' international payment companies
-- Processing payments for some of the fastest growing and
leading eCommerce and 'sharing economy' platforms
European Markets
We continue to gain traction with European global banks and are
increasingly involved in multiple engagements with existing
clients, which are in part responsible for our growing transaction
volumes. With our enhanced product offerings and payment methods,
including Distributed Ledger (DL) and Faster Payments, we are in
discussions with an increasing number of European banks and
financial institutions with regard to cross-border payment
solutions.
Contract wins in Europe during FY16 include a large eCommerce
provider which is now live in three markets and already a top five
client by volume. We have also commenced transactions on behalf of
two new top five global Money Transfer Organisations. Furthermore,
we are extending into new market segments having signed a recent
contract with a leading global travel booking portal, which is
currently in implementation.
In addition, Earthport's partnership with Ripple led to the
first use of DL technology for live transactions in a Fiat currency
and is currently in operation at a large European Bank.
North American Markets
In North America, Earthport has made good progress in mining its
existing client base while targeting specific strategic
opportunities. Examples of this include the substantial integration
of an existing client's core payment processing platform into
Earthport's network.
This client is a top 10 global bank. We also commenced
transactions on behalf of two other North American banks and
increased transaction volumes from one of the world's fastest
growing eCommerce payment platforms.
Emerging Markets
We have a unique opportunity to develop business in emerging
markets resulting from the global network we have developed which
provides access into an extensive number of countries.
In 2016, we contracted with a major Japanese bank to process
payments to six countries. We also contracted with three out of the
four major Money Transfer Organisations in Israel, two of which are
already live, with the third currently in implementation. In
addition, we are in active discussion with major banks in India,
Indonesia and other markets. Our deal pipeline is strong, currently
consisting of banks from over ten new countries across the
region.
Given our need for local presence to support our global clearing
network, we are finding promising opportunities in the region which
are being driven by significant pressures due to new regulations
and reduction in risk appetite by the global banks who are
withdrawing from some markets/businesses.
EarthportFX Launch
In June 2016, Earthport's subsidiary, Baydonhill, rebranded and
relaunched as EarthportFX, better aligning the business with
Earthport's core model, and expanding its services to corporate
clients. Further progress was also made in integrating of our FX
capability into the broader Earthport payment offering.
Distributed Ledger Strategy
Earthport announced its gateway partnership with Ripple in
August 2015 which led to the launch of the Earthport Distributed
Ledger Hub, announced in January 2016. This is planned to provide
connectivity to additional distributed ledgers as they emerge, all
available via a single connect to Earthport.
In addition, in April 2016, Earthport executed the first
cross-border payment transaction via distributed ledger. As
mentioned above, this was carried out by a major European bank
using our platform in conjunction with the Ripple Distributed
Ledger.
Network Enhancement
Our extensive global network is a core and unique asset. During
2016, we launched our services in several key geographies in the
Asian and Caribbean markets, including Sri Lanka, the Bahamas and
the Dominican Republic.
We also continue to enhance our network, further strengthening
our payment capabilities into India and Pakistan. In addition, we
placed an increased focus during the year onto building resilience
in our network.
Risk Management Changes and Initiatives
In February 2016, Earthport's FX subsidiary, Baydonhill,
experienced a material financial loss amounting to GBP5 million,
resulting from a fraud perpetrated by a corporate client.
Immediately upon discovery of the loss event, an internal
investigation commenced, and concurrently, amended controls were
applied across the Baydonhill portfolio to ensure losses were
finite and any exposure curtailed. A number of external engagements
were initiated in parallel to identify all potential avenues of
recovery.
At the conclusion of the internal investigation and in
recognition of the requirement to focus on recovery, the Company
retained the services of Promontory Advisory Services, to undertake
an independent investigation into the design and operation of the
control framework and associated management accountabilities,
throughout the period during which decisions were made or actions
undertaken, which ultimately led to the loss event.
The findings of the Promontory investigation and insight gained
through engagement with the Administrator supported the early
assumptions of fraud. Continued engagement with law enforcement and
the bilateral sharing of relevant information led to the
Metropolitan Police Service Special Organised Crime Command Unit
SC07 undertaking to investigate the client entity.
A formal claim has been initiated under the Company's Financial
Crime Insurance (which remains extant) and we are supported in this
claim by specialist insurance claim legal advisers.
The recovery of the claim is uncertain and therefore has not
been included in the financial statements.
Market Environment
Market Positioning
Earthport has gained broad recognition as a superior alternative
to the traditional model of correspondent banking for managing high
volumes of low-value payments, enabling banks and businesses to
manage payments globally via a single point of access with improved
cost and operational efficiency. This has been evidenced in the
strength of our expanded client base and the health and composition
of our new business pipelines across established and new
development regions.
Over the past two years the competitive landscape has began to
change as the industry's understanding of the inherent need
correspondent for an alternative to the traditional correspondent
banking model has matured. As new solutions enter the market, many
of which are powered by our services, we see it as further
validation that our solutions are key to solving the inherent
inefficiencies within the correspondent banking industry.
A healthy mix of competition will only drive further demand for
change and innovation and we are confident that this will enable
our success. Developing bank partnerships is a cost and labour
intensive process that Earthport now has a multi-year lead on and
the resultant payments expertise and market-specific understanding
is the core IP now embedded in our offering.
Regulations and Compliance
While the traditional function of regulation in the payments
space has been to set the rules for activities which are already
occurring, the Second Payments Services Directive (PSD2) has the
potential to drive change in the industry. With protection of the
customer in mind, incentives have been placed on banks to innovate,
and on technology companies to submit to regulatory oversight.
With scale advantages and customer confidence held by the banks,
and the technology companies having the agility needed to innovate
quickly, the industry as a whole is incentivised to collaborate. As
a company with a market offering enabling both groups to better
service their consumers, Earthport is well placed to support the
innovation encouraged by the regulators.
As well as adapting to PSD2, banks must also fall into line with
the tightening regulation around capital adequacy brought by Basel
III. Most commentators agree that this regulatory development will
necessitate improvements in liquidity management efficiency. The
outcome of this should be to focus banks more keenly on the
problems inherent in the traditional correspondent banking system:
opacity around individual liquidity positions that are spread
across the globe; settlement time uncertainties and lack of
transparency or predictability of charges by the many participants
in the chain.
Earthport's centralised management of client liquidity and
transparency around settlement times and charges is therefore
proving to be a highly attractive feature for banks chasing
liquidity visibility, transparency and efficiencies.
A less welcome response to the increase in global regulation is
'de-risking', the process by which banks terminate client
relationships because the regulatory risk that relationship poses
(and the ensuing administrative burden) is perceived by such
institutions as an unbalanced risk/reward ratio. From the
regulator's point of view, the effect of this is counterproductive
with money flowing to the informal sector, reducing the visibility
of any illicit transactions. Moreover, de-risking stalls the
velocity of trade and business flows, thereby impacting global
economic growth.
It is clear that a more pragmatic risk/reward ratio needs to be
identified, and it is likely that this will involve the
consolidation of relationships that can be channelled through a
utility provider with proven regulatory compliance controls.
Earthport's service can aggregate legitimate business from smaller
players into a business line that is easier to manage.
Effects of Brexit
Earthport recognises that stakeholders including clients,
partners, and investors may have an interest in how Brexit may
affect our business, particularly the possible changes to
Regulatory Passporting arrangements across the EU. Our strong
relationships with Financial Institutions in Europe and across the
globe alleviate any immediate concerns for the business.
As a business operating in more than 60 jurisdictions,
monitoring and responding to regulatory change is business as usual
for Earthport and something we already manage in more than 30 of
those jurisdictions. In the event that the Company does need to
respond to altered regulatory obligations, such as by locating an
office within the EU. If this becomes apparent, then we will act
accordingly.
Awards and Recognitions
In FY16, we continued our success in winning awards,
demonstrating industry recognition of our solutions. These included
the:
-- Barry Holland Memorial Award for Outstanding Individual
Achievement to CEO, Hank Uberoi at the FS Tech Awards 2016
-- Technology Company of the Year at the Grant Thornton Quoted Company Awards 2015
-- Best Cross-Border Money Transfer Solution 2015 at the Cfi.co Finance Awards
-- Cross-Border Payment Network of the Year Fintech Excellence Awards 2015
-- Best Alternative Payments Project at the Payments Awards 2015
-- Payment Pioneer Award for Earthport CEO Hank Uberoi at the Payments Awards 2015
Strategy
Building for scalability is central to our strategy, with
Earthport carving out a unique position as the leading cross-border
payments company globally. This is supported by fast growing
recognition and acceptance of our cross-border payments model. As
an Authorised Payment Institution (API) regulated by the UK FCA,
Earthport is uniquely positioned to service clients globally across
several industry segments. Further investment into the development
of a strong integrated FX product offering is integral to the
Earthport model and core to our strategic mission.
In addition, we are focusing our sales and marketing efforts on
capturing more of the global eCommerce opportunity, leveraging our
existing traction in this space. Our anticipated grant of licensing
in several states in the USA is expected to accelerate growth in
this sector.
We are also focused on nurturing growth within our existing
client base. As our global banking clients transition from the
implementation stage to going fully live with our solutions,
significant opportunities emerge to broaden relationships. As a
result of this we are currently experiencing increasing transaction
volumes and multiple engagements with existing clients.
Geographical expansion is also core to our strategy,
particularly in India and emerging markets where we foresee strong
growth potential. We are currently engaged with regulators in
multiple countries and expect to launch offerings in key Asian
markets to enable us to originate 'outbound' business.
The ongoing building of our network of partnerships in emerging
regions such as Latin America, Africa and Asia Pacific continues
apace. In response to increasing regulatory pressures globally and
growing transaction volumes, it is essential we build resilience
into our network. Secondary and tertiary supplier relationships
will be a key focus for FY17 with emphasis on key regions such as
Asia, where client demand and potential for significant scale is
strong. Ensuring our network remains robust and responsive to
client and market demand will place us in good stead as recognition
of the market need matures and new players enter the segment.
We will also continue our investment into future-proofing our
platform. This involves enhancing our technology infrastructure in
order to support the growth trends we are currently witnessing.
Investing into fully automating our Target Operating Model is also
a priority. This model involves real-time processing of payments
without manual intervention, improved and seamless customer service
providing visibility of transactions, and enhanced control and
clarity of liquidity flows.
Outlook
Market incumbents currently have to cope with increasing
regulatory scrutiny and complexity, diminishing margins and growing
competition. This leaves Earthport well positioned to act as a
facilitator of change in the cross-border payment market. The
payments world is fast altering, as trade and business flows
impacting global economic growth shift, there is an imperative to
construct an efficient and effective system that facilitates the
flow of global payments.
We are committed to a long-term strategy of continuing to
develop the world's leading cross-border payments platform; to
provide our clients with access to a network that reaches any
account, in any currency, through one connection with world-class
compliance, resilience, trust and cost optimisation. Above all, we
place emphasis on enhancing the customer experience by harmonising
our suite of products and services, re-engineering our internal
processes, and simplifying implementation.
In order to meet these commitments and opportunities we will
continue to enhance our business and enter into new markets based
on volume growth and client need. The investments made during FY16
have improved traction with key European and North American banks
and we look forward to reporting further contracts in the coming
months. We remain positive regarding the growth prospects for
Earthport and believe we have the potential to build and hold a
significant share of the multi-trillion dollar cross-border
payments market.
Consolidated Statement of Comprehensive Income
For the year ended 30 June 2016
2016 2015
Notes GBP'000 GBP'000
--------------------------------------------- ----- -------- --------
Continuing operations:
--------------------------------------------- ----- -------- --------
Revenue 3 22,772 19,267
--------------------------------------------- ----- -------- --------
Cost of sales - before warrant charge (6,849) (3,612)
============================================= ===== ======== ========
Adjusted gross profit 15,923 15,655
--------------------------------------------- ----- -------- --------
Cost of sales - warrant charge (578) (728)
============================================= ===== ======== ========
Gross profit 15,345 14,927
--------------------------------------------- ----- -------- --------
Administrative expenses 5 (25,780) (19,941)
============================================= ===== ======== ========
Adjusted operating loss (10,435) (5,014)
--------------------------------------------- ----- -------- --------
Share-based payment charge (620) (3,289)
--------------------------------------------- ----- -------- --------
Unrealised fair value adjustment 12 8,224 345
--------------------------------------------- ----- -------- --------
Exceptional item - Baydonhill loss 13 (5,000) -
--------------------------------------------- ----- -------- --------
Exceptional item - Impairment of available
for sale investment 13 (250) -
--------------------------------------------- ----- -------- --------
Operating loss (8,081) (7,958)
--------------------------------------------- ----- -------- --------
Finance income 20 52
--------------------------------------------- ----- -------- --------
Reduction in contingent consideration
liability due to amendment as per the
CVR deed 14 842 (803)
============================================= ===== ======== ========
Loss before taxation (7,219) (8,709)
--------------------------------------------- ----- -------- --------
Income tax (expense)/income 6 (996) 18
--------------------------------------------- ----- -------- --------
Loss for the year and total comprehensive
income attributable to owners of the Parent (8,215) (8,691)
--------------------------------------------- ----- -------- --------
Loss per share - basic and fully diluted 7 (1.74p) (1.91p)
============================================= ===== ======== ========
There were no items of other comprehensive income for the
year.
Consolidated Statement of Financial Position
As at 30 June 2016
2016 2015
Notes GBP'000 GBP'000
-------------------------------------------- ----- --------- ---------
Assets
-------------------------------------------- ----- --------- ---------
Non-current assets
-------------------------------------------- ----- --------- ---------
Goodwill 2,709 2,709
-------------------------------------------- ----- --------- ---------
Intangible assets 6,249 6,406
-------------------------------------------- ----- --------- ---------
Investment - 250
-------------------------------------------- ----- --------- ---------
Deferred tax asset 10 - 327
-------------------------------------------- ----- --------- ---------
Property, plant and equipment 597 709
-------------------------------------------- ----- --------- ---------
9,555 10,401
============================================ ===== ========= =========
Current assets
-------------------------------------------- ----- --------- ---------
Trade and other receivables 8 11,290 8,329
-------------------------------------------- ----- --------- ---------
Derivative financial assets 6,253 976
-------------------------------------------- ----- --------- ---------
Cash and cash equivalents 14,429 30,195
============================================ ===== ========= =========
31,972 39,500
============================================ ===== ========= =========
Total assets 41,527 49,901
============================================ ===== ========= =========
Liabilities
-------------------------------------------- ----- --------- ---------
Current liabilities
-------------------------------------------- ----- --------- ---------
Trade and other payables 9 (5,676) (5,711)
-------------------------------------------- ----- --------- ---------
Derivative financial liabilities (1,368) (2,766)
-------------------------------------------- ----- --------- ---------
Contingent consideration 14 (2,295) -
============================================ ===== ========= =========
(9,339) (8,477)
============================================ ===== ========= =========
Non-current liabilities
-------------------------------------------- ----- --------- ---------
Contingent consideration - (3,292)
============================================ ===== ========= =========
Deferred tax liability 10 (1,676) (737)
============================================ ===== ========= =========
(1,676) (4,029)
============================================ ===== ========= =========
Total liabilities (11,015) (12,506)
============================================ ===== ========= =========
Net assets 30,512 37,395
============================================ ===== ========= =========
Equity
-------------------------------------------- ----- --------- ---------
Share capital 70,738 70,695
-------------------------------------------- ----- --------- ---------
Share premium 78,064 78,272
-------------------------------------------- ----- --------- ---------
Interest in own shares (953) (1,252)
-------------------------------------------- ----- --------- ---------
Merger reserve 9,200 9,200
-------------------------------------------- ----- --------- ---------
Share-based payment reserve 12,164 12,557
-------------------------------------------- ----- --------- ---------
Warrant reserve 1,623 1,045
-------------------------------------------- ----- --------- ---------
Retained earnings (140,324) (133,122)
============================================ ===== ========= =========
Equity attributable to owners of the Parent 30,512 37,395
============================================ ===== ========= =========
Consolidated Statement of Cashflows
For the year ended 30 June 2016
2016 2015
Notes GBP'000 GBP'000
------------------------------------------- ----- -------- --------
Net cash used in operating activities 11 (13,088) (2,903)
------------------------------------------- ----- -------- --------
Investing activities
------------------------------------------- ----- -------- --------
Purchase of property, plant and equipment (392) (757)
------------------------------------------- ----- -------- --------
Capitalised intangible fixed assets (2,265) (1,916)
------------------------------------------- ----- -------- --------
Purchase of trade investment - (25)
------------------------------------------- ----- -------- --------
Part payment of contingent consideration (155) -
=========================================== ===== ======== ========
Net cash used in investing activities (2,812) (2,698)
------------------------------------------- ----- -------- --------
Financing activities
------------------------------------------- ----- -------- --------
Proceeds on issuance of ordinary shares
(net of costs paid) - 26,567
------------------------------------------- ----- -------- --------
Proceeds on exercise of options 134 -
------------------------------------------- ----- -------- --------
Proceeds on exercise of options through
Joint Share Ownership Plan - 112
------------------------------------------- ----- -------- --------
Repayment of loan - (344)
=========================================== ===== ======== ========
Net cash from financing activities 134 26,335
=========================================== ===== ======== ========
Net (decrease)/increase in cash and cash
equivalents (15,766) 20,734
------------------------------------------- ----- -------- --------
Cash and cash equivalents at the beginning
of the year 30,195 9,461
=========================================== ===== ======== ========
Cash and cash equivalents at the end of
the year 14,429 30,195
=========================================== ===== ======== ========
Consolidated Statement of Changes in Equity
For the year ended 30 June 2016
Attributable to owners of the Parent
----------------------------------------------------------------------------------
Interest Share-based
Share Share in own Merger payment Warrant Retained
capital premium shares reserve reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------------- -------- -------- -------- -------- ----------- -------- --------- --------
Balance at 30 June
2014 64,016 58,213 (1,456) 9,200 9,632 317 (124,795) 15,127
=========================== ======== ======== ======== ======== =========== ======== ========= ========
Loss for the year,
being total comprehensive
income for the year - - - - - - (8,691) (8,691)
--------------------------- -------- -------- -------- -------- ----------- -------- --------- --------
Transactions with
owners
--------------------------- -------- -------- -------- -------- ----------- -------- --------- --------
Share-based payments
--------------------------- -------- -------- -------- -------- ----------- -------- --------- --------
- exercise of share
options 101 63 204 - (364) - 364 368
--------------------------- -------- -------- -------- -------- ----------- -------- --------- --------
- employee share
options charge - - - - 3,289 - - 3,289
--------------------------- -------- -------- -------- -------- ----------- -------- --------- --------
- warrant charge - - - - - 728 - 728
--------------------------- -------- -------- -------- -------- ----------- -------- --------- --------
Issue of ordinary
shares 6,578 20,295 - - - - - 26,873
--------------------------- -------- -------- -------- -------- ----------- -------- --------- --------
Cost of share issues - (299) - - - - - (299)
=========================== ======== ======== ======== ======== =========== ======== ========= ========
Total transactions
with owners of the
Parent, recognised
directly in equity 6,679 20,059 204 - 2,925 728 (8,327) 22,268
=========================== ======== ======== ======== ======== =========== ======== ========= ========
Balance at 30 June
2015 70,695 78,272 (1,252) 9,200 12,557 1,045 (133,122) 37,395
=========================== ======== ======== ======== ======== =========== ======== ========= ========
Loss for the year,
being total comprehensive
income for the year - - - - - - (8,215) (8,215)
--------------------------- -------- -------- -------- -------- ----------- -------- --------- --------
Transactions with
owners
--------------------------- -------- -------- -------- -------- ----------- -------- --------- --------
Share-based payments
--------------------------- -------- -------- -------- -------- ----------- -------- --------- --------
- exercise of share
options 43 (208) 299 - (1,013) - 1,013 134
--------------------------- -------- -------- -------- -------- ----------- -------- --------- --------
- employee share
options charge - - - - 620 - - 620
--------------------------- -------- -------- -------- -------- ----------- -------- --------- --------
- warrant charge - - - - - 578 - 578
--------------------------- -------- -------- -------- -------- ----------- -------- --------- --------
Total transactions
with owners of the
Parent, recognised
directly in equity 43 (208) 299 - (393) 578 (7,202) (6,883)
=========================== ======== ======== ======== ======== =========== ======== ========= ========
Balance at 30 June
2016 70,738 78,064 (953) 9,200 12,164 1,623 (140,324) 30,512
=========================== ======== ======== ======== ======== =========== ======== ========= ========
Merger Reserve
The merger reserve represents the premium attributable to shares
issued in consolidation of the costs of acquisition of subsidiaries
in prior years.
Share-based Payment Reserve
The share-based payment reserve represents the cumulative charge
to date in respect of unexercised share options at the balance
sheet date.
Warrant Reserve
The warrant reserve represents the cumulative charge to date in
respect of unexercised share warrants at the balance sheet
date.
Retained Earnings
The retained earnings represent the cumulative profit and loss
net of distribution to owners.
Notes to the Financial Statements
For the year ended 30 June 2016
1. General Information
Earthport plc is a public limited company incorporated and
domiciled in England and Wales under the Companies Act 2006. The
address of its principle place of business and registered office is
21 New Street, London EC2M 4TP.
The preliminary financial information does not constitute full
accounts within the meaning of section 434 of the Companies Act
2006 but is derived from accounts for the years ended 30 June 2016
and 30 June 2015, both of which are audited. The preliminary
announcement is prepared on the same basis as set out in the
statutory accounts for the year ended 30 June 2016. While the
financial information included in this preliminary announcement has
been prepared in accordance with the recognition and measurement
criteria of International Financial Reporting Standards (IFRS), as
adopted by the European Union (EU), this announcement does not in
itself contain sufficient information to comply with IFRSs.
The statutory accounts for the year ended 30 June 2016 will be
delivered to the Registrar of Companies following the Company's
Annual General Meeting. Statutory accounts for the year ended 30
June 2015 have been filed with the Registrar of Companies. The
auditor's report for the year ended 30 June 2016 was unqualified
and did not contain any statement under section 498(2) or (3) of
the Companies Act 2006.
2. Going Concern
The Directors believe that the Group has demonstrated further
progress in achieving its objective of positioning itself as an
infrastructure supplier to the global payments industry. The
Directors have prepared a cash flow forecast covering a period
extending beyond 12 months from the date of these financial
statements after taking account of anticipated overhead costs and
revenue, the Directors are confident that sufficient funds are in
place to support the going concern status of the Group. Therefore,
the Directors consider that it is appropriate to prepare the
Group's financial statements on a going concern basis, which
assumes that the Group is to continue in operational existence for
the foreseeable future.
3. Segment Information
Revenue, loss and net assets/liabilities are all attributable to
two business segments operating from the Group's headquarters in
London, United Kingdom. This is consistent with the information
reviewed by the chief operating decision maker. Revenue categories
and segmental analysis by location of customers is as follows:
2016 2015
Revenue GBP'000 GBP'000
---------------------- -------- --------
Transactional 20,689 16,266
---------------------- -------- --------
Professional services 2,083 3,001
---------------------- -------- --------
22,772 19,267
====================== ======== ========
2016 2015
Revenue GBP'000 GBP'000
------------------ -------- --------
United Kingdom 12,507 12,275
------------------ -------- --------
Europe 1,496 1,106
------------------ -------- --------
North America 7,284 4,642
------------------ -------- --------
Rest of the world 1,485 1,244
================== ======== ========
22,772 19,267
================== ======== ========
4. Loss Before Taxation
2016 2015
GBP'000 GBP'000
----------------------------------------------- -------- --------
Loss before taxation is stated after charging:
----------------------------------------------- -------- --------
Amortisation of intangible assets 2,422 1,904
----------------------------------------------- -------- --------
Depreciation of property, plant and equipment 504 342
----------------------------------------------- -------- --------
Development costs 233 151
----------------------------------------------- -------- --------
Operating leases:
----------------------------------------------- -------- --------
- property 480 359
----------------------------------------------- -------- --------
Fees payable to the Company's Auditor:
----------------------------------------------- -------- --------
For the statutory audit of the:
----------------------------------------------- -------- --------
- Parent and consolidated financial statements 52 43
----------------------------------------------- -------- --------
- subsidiary financial statements 30 30
----------------------------------------------- -------- --------
- additional fee in respect of the prior year
audit - 30
----------------------------------------------- -------- --------
Fees payable to associates of the Company's
Auditor:
----------------------------------------------- -------- --------
- for tax compliance 12 7
----------------------------------------------- -------- --------
- for other services 16 12
----------------------------------------------- -------- --------
- interim agreed upon procedure 10 -
----------------------------------------------- -------- --------
5. Administrative Expenses
2016 2015
GBP'000 GBP'000
---------------------------------------------- -------- --------
Staff and contractor costs 14,569 10,913
---------------------------------------------- -------- --------
Travel and entertainment costs 1,182 1,091
---------------------------------------------- -------- --------
Professional services costs 1,294 1,281
---------------------------------------------- -------- --------
Sales and marketing costs 693 514
---------------------------------------------- -------- --------
IT operational costs 2,303 1,469
---------------------------------------------- -------- --------
Other operational costs 622 432
---------------------------------------------- -------- --------
Other overheads 2,191 1,995
---------------------------------------------- -------- --------
Depreciation of property, plant and equipment 504 342
---------------------------------------------- -------- --------
Amortisation of intangible assets 2,422 1,904
============================================== ======== ========
25,780 19,941
============================================== ======== ========
Cost of sales includes bank transaction charges and sales
commission.
6. Income Tax Expense
2016 2015
GBP'000 GBP'000
-------------------------------------------------- -------- --------
Current tax charge (270) 4
-------------------------------------------------- -------- --------
Deferred tax charge 1,266 84
-------------------------------------------------- -------- --------
R&D tax (credit) received - (106)
================================================== ======== ========
Total tax charge/(credit) 996 (18)
================================================== ======== ========
Factors affecting the tax charge for the year:
-------------------------------------------------- -------- --------
Loss before taxation (7,219) (8,709)
-------------------------------------------------- -------- --------
Loss before tax multiplied by effective standard
rate of corporation tax in the UK of 20% (FY
2015: 21%) (1,444) (1,829)
-------------------------------------------------- -------- --------
Tax effect of:
-------------------------------------------------- -------- --------
Expenses not deductible for tax purposes 7 5
-------------------------------------------------- -------- --------
Temporary differences not recognised for deferred
tax purposes 19 14
-------------------------------------------------- -------- --------
Share-based payment charge not recognised for
deferred tax purposes 535 397
-------------------------------------------------- -------- --------
Losses not recognised for deferred tax purposes 1,879 1,395
================================================== ======== ========
Tax charge for the year 996 (18)
================================================== ======== ========
No deferred tax asset has been recognised in relation to trading
loss carried forward of GBP99.91 million (FY 2015: GBP91.69
million) due to uncertainty over the timing of its recovery.
7. Loss Per Share
The loss per share is calculated by dividing the loss
attributable to equity holders of the Company by the weighted
average number of ordinary shares in issue during the year.
2016 2015
GBP'000 GBP'000
-------------------------------------------- -------- --------
Loss attributable to equity shareholders of
the Company (8,215) (8,691)
============================================ ======== ========
2016 2015
Number Number
------------------------------------------- ------- -------
Weighted average number of ordinary shares
in issue (thousands) 476,674 461,444
------------------------------------------- ------- -------
Less: own shares held (thousands) (5,369) (7,113)
=========================================== ======= =======
471,305 454,331
=========================================== ======= =======
2016 2015
----------------------------------------------- ------- -------
Basic and fully diluted loss per share (pence) (1.74p) (1.91p)
=============================================== ======= =======
The loss attributable to ordinary shareholders and weighted
average number of ordinary shares for the purposes of calculating
the diluted loss per share are identical to those used for basic
loss per ordinary share. This is because the exercise of share
options and other benefits would have the effect of reducing loss
per share and is therefore not dilutive under the terms of IAS 33,
Earnings Per Share.
8. Trade and Other Receivables
2016 2015
GBP'000 GBP'000
------------------ -------- --------
Trade receivables 8,349 6,464
------------------ -------- --------
Other receivables 2,246 1,098
------------------ -------- --------
Prepayments 695 767
================== ======== ========
At 30 June 11,290 8,329
================== ======== ========
Trade receivables amounted to GBP8,349,000 (FY 2015:
GBP6,464,000), net of a provision of GBPnil (FY 2015: GBP100,000)
for impairment. Movement on the Group provisions for impairment
were as follows:
2016 2015
GBP'000 GBP'000
---------------------------------------- -------- --------
At 1 July 100 129
---------------------------------------- -------- --------
Provision for impairment 5,231 -
---------------------------------------- -------- --------
Receivables written off during the year (5,331) (29)
======================================== ======== ========
At 30 June - 100
======================================== ======== ========
The average credit period taken on sales of services is 30 days
(2015: 30 days). No interest is charged on overdue balances. The
Directors consider that the carrying amount of trade receivables
approximates their fair value.
9. Trade and Other Payables
2016 2015
GBP'000 GBP'000
----------------------------------- -------- --------
Trade payables 2,117 3,662
----------------------------------- -------- --------
Other payables 312 4
----------------------------------- -------- --------
Other taxation and social security 334 356
----------------------------------- -------- --------
Accruals and deferred income 2,913 1,689
=================================== ======== ========
5,676 5,711
=================================== ======== ========
Trade payables and accruals principally comprise amounts
outstanding in respect of operating costs. The average credit
period taken for trade purchases is 35 days (FY 2015: 33 days). The
Directors consider that the carrying amounts for trade and other
payables and accruals approximate their fair value.
10. Deferred Tax
2016 2015
Deferred tax asset GBP'000 GBP'000
------------------------------------------------- -------- --------
1 July 327 541
------------------------------------------------- -------- --------
Deferred tax charge released to income statement (327) (214)
================================================= ======== ========
30 June - 327
================================================= ======== ========
2016 2015
Deferred tax liability GBP'000 GBP'000
------------------------------------------------- -------- --------
1 July (737) (867)
------------------------------------------------- -------- --------
Deferred tax credit released to income statement (939) 130
================================================= ======== ========
30 June (1,676) (737)
================================================= ======== ========
Deferred tax liabilities (net) (1,676) (410)
================================================= ======== ========
The gross movement on the deferred tax is as follows:
2016 2015
GBP'000 GBP'000
---------------------------------------------- -------- --------
1 July (410) (326)
---------------------------------------------- -------- --------
Accelerated capital allowances (92) 92
---------------------------------------------- -------- --------
Tax losses relieved during the year - (541)
---------------------------------------------- -------- --------
Deferred tax credit released to the income
statement 150 130
---------------------------------------------- -------- --------
Tax credit on derivative financial assets and
liabilities (1,324) 235
---------------------------------------------- -------- --------
30 June (1,676) (410)
============================================== ======== ========
The deferred tax reconciliation on category basis of assets and
liabilities is as follows:
Net
Accelerated Derivative
Capital Tax Financial
Allowances Losses Liabilities Total
Deferred tax assets GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------- ----------- -------- ------------ --------
1 July 2014 - 541 - 541
------------------------------------------- ----------- -------- ------------ --------
Acquisition of subsidiary - - - -
------------------------------------------- ----------- -------- ------------ --------
(Charged)/credited to the income statement 92 (541) 235 (214)
------------------------------------------- ----------- -------- ------------ --------
30 June 2015 92 - 235 327
=========================================== =========== ======== ============ ========
Credited/(charged) to the income statement (92) - (235) (327)
------------------------------------------- ----------- -------- ------------ --------
30 June 2016 - - - -
=========================================== =========== ======== ============ ========
Intangible
Assets Net
arising Derivative
on Financial
Acquisition Assets Total
Deferred tax liabilities GBP'000 GBP'000 GBP'000
--------------------------------- ------------ ----------- --------
1 July 2014 (867) - (867)
----------------------------------- ------------ ----------- --------
Acquisition of subsidiary - - -
--------------------------------- ------------ ----------- --------
Credited to the income statement 130 - 130
----------------------------------- ------------ ----------- --------
30 June 2015 (737) - (737)
=================================== ============ =========== ========
Credited/(charged) to the income
statement 150 (1,089) (939)
----------------------------------- ------------ ----------- --------
30 June 2016 (587) (1,089) (1,676)
=================================== ============ =========== ========
The potential deferred tax asset arising on the cumulative
losses carried forward is GBP20.34 million (FY 2015: GBP18.34
million) has not been recognised owning to uncertainty as to its
recoverability.
11. Reconciliation of Loss Before Tax to Net Cash Used in
Operating Activities
2016 2015
Group GBP'000 GBP'000
------------------------------------------------ -------- --------
Loss before tax (7,219) (8,709)
------------------------------------------------ -------- --------
Amortisation of intangible assets 2,422 1,904
------------------------------------------------ -------- --------
Depreciation of property, plant and equipment 504 342
------------------------------------------------ -------- --------
Share-based payment and warrants charge 1,198 4,017
------------------------------------------------ -------- --------
Shares issue in lieu of fee - 263
------------------------------------------------ -------- --------
R&D tax credit receivable/received 270 106
------------------------------------------------ -------- --------
Finance income (20) (52)
------------------------------------------------ -------- --------
Current year tax charge - (4)
------------------------------------------------ -------- --------
Unwinding of discount on deferred consideration (842) 803
================================================ ======== ========
Impairment of available for sale investment 250 -
================================================ ======== ========
Operating cash outflow before movements in
working capital (3,437) (1,330)
------------------------------------------------ -------- --------
Increase in receivables (8,238) (1,640)
------------------------------------------------ -------- --------
(Decrease)/increase in payables (1,433) 15
================================================ ======== ========
Cash used by operations (13,108) (2,955)
------------------------------------------------ -------- --------
Finance income 20 52
================================================ ======== ========
Net cash used in operating activities (13,088) (2,903)
================================================ ======== ========
12. Unrealised Fair Value Adjustment
In accordance with IAS 39, the Group fair valued all currency
bank accounts, which include client segregated and company
accounts, as well as forward foreign exchange contracts. The fair
value revaluation of such receivables, payables and currency
accounts gave rise to an unrealised gain of GBP1.55 million (FY
2015: GBP1.1 million). All forward foreign exchange contracts
executed with clients are matched with bank forward foreign
exchange contracts and as a result, the fair value revaluation
generated a net derivative unrealised gain of GBP6.68 million (FY
2015: loss of GBP0.75 million).
2016 2015
GBP'000 GBP'000
-------------------------------------- -------- --------
Foreign exchange gain 1,549 1,093
-------------------------------------- -------- --------
Fair value gain/(loss) on derivatives 6,675 (748)
====================================== ======== ========
Total 8,224 345
====================================== ======== ========
The above mentioned unrealised gains and losses would only be
realised in the unlikely event that any party to the transaction
would default.
13. Exceptional Items
Baydonhill loss
In February 2016, Company experienced a material financial loss
amounting to GBP5 million, resulting from a fraud perpetrated by a
corporate client. Immediately upon discovery of the loss event, an
internal investigation commenced, and concurrently, amended
controls were applied across the whole organisation to ensure
losses were finite and any exposure curtailed. A number of external
engagements were initiated in parallel to identify all potential
avenues of recovery.
A formal claim has been initiated under the Company's Financial
Crime Insurance (which remains extant) and we are supported in this
claim by specialist insurance claim legal advisers. The recovery of
the claim is uncertain and therefore has not been included in the
financial statements.
Impairment of available for sale investment
This was a trade investment with an option to take an equity
stake in the future and licensing rights to technologies that will
assist business development. The business is now in liquidation and
therefore investment has been impaired in full.
14. Contingent Consideration
On 19 October 2016 (see RNS 8882M), Earthport announced that an
Amendment was agreed by Earthport and the CVR Committee regarding
the contingent consideration in response to the impact of the
February loss at Baydonhill ("Loss Incident"), as announced on 25
February 2016 (see RNS 1396Q), in accordance with the terms of the
("Original Agreement"). Both parties have agreed that, the
aggregate free-cash-flow figure used to calculate the current CVR
Entitlement will bear a partial impact of the GBP5 million
Baydonhill loss resulting from the Loss Incident and the amended
CVR Entitlement shall be a maximum of GBP2,295,400. As a result of
the Amendment, approximately GBP700,000 in cash will be returned to
Earthport from an escrow account established and funded for meeting
its obligations under the Original Agreement.
2016 2015
Group and Company GBP'000 GBP'000
------------------------------------------------ -------- --------
At 1 July 3,292 2,489
------------------------------------------------ -------- --------
Unwinding of discount 923 803
------------------------------------------------ -------- --------
Part payment of consideration (855) -
------------------------------------------------ -------- --------
Cash receivable due to amendment to contingent
consideration as per the CVR deed 700 -
------------------------------------------------ -------- --------
Reduction in contingent consideration liability
due to amendment as per the CVR deed (1,765) -
================================================ ======== ========
At 30 June 2,295 3,292
================================================ ======== ========
15. Annual Report and Accounts
Copies of the Annual Report will be available as of 26 October
2016 on the Group's website, www.earthport.com and from the Group's
registered office.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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October 26, 2016 02:00 ET (06:00 GMT)
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