TIDMEPO
RNS Number : 9301E
Earthport PLC
15 February 2018
15 February 2018
Earthport plc
("Earthport" or the "Company")
Unaudited Trading Update for the period ended 31 December
2017
Earthport (AIM: EPO.L), the leading payment network for
cross-border payments, is pleased to provide an unaudited trading
update for the six month period ended 31 December 2017 ("H1 FY
2018").
Financial Highlights
-- Revenues grew by approximately 8% to GBP15.4 million (H1 FY 2017: GBP14.3 million)
-- Adjusted gross margin decreased by 9% to 64% compared to 70%
in H1 FY 2017, due to network delivery costs and mix of
business
-- Administrative expenses increased by approximately 7% to
GBP13.9 million (H1 FY 2017: GBP13.0 million), representing 90% of
revenues (H1 FY 2017: 91%)
-- Adjusted EBITDA loss increased by approximately GBP1.7
million to GBP3.2 million (H1 FY 2017: GBP1.5 million)
-- Cash Balance at 31 December 2017 amounted to GBP30.6 million,
compared to GBP11.9 million at 30 June 2017. This includes net
proceeds of GBP24 million raised in October 2017
Operational & Transactional Highlights
-- Monetary value of transactions processed increased by 11% to
$8.7 billion (H1 FY 2017: $7.8 billion)
-- Number of transactions in line with H1 FY 2017 at approximately 5 million
o This includes a recent change at one of our leading e-commerce
clients announced in December. Excluding that, transactions were up
11%
-- Banking networks stand at 65+ for local delivery (200+ in total)
-- Average revenue per transaction of GBP2.87 (H1 FY 2017:
GBP2.64). This figure has risen due to the discontinuation of the
low value e-commerce UK business
Summary
Whilst there have been challenges in H1 FY 2018, we are
confident that our core services remain strong and are of
increasing importance in the changing payments landscape. We have
delivered continued growth in revenue against the same period in
the previous year, despite the setbacks outlined in the December
2017 announcement. We are confident that in H2 FY 2018 and FY 2019
we will see the realisation of revenue against a strong pipeline of
opportunities as we continue to deliver against our long-term
strategy to be the leading global cross border payments
utility.
Our balance sheet is strong with GBP30.6m of cash supporting our
continued growth and long-term strategy. We are investing in
further growth in our global sales functions, product enhancements
and technology with a clear focus on delivering a reduction in our
operational costs through innovation and further automation.
The new business pipeline remains strong whilst transactions
from existing customers are growing YoY in excess of 10%. The
emerging focus on new technologies such as distributed ledger
highlights the strategic nature of Earthport's assets, which will
be key to the ability of these technologies to provide delivery of
cross-border payments. The first of our initiatives in distributed
ledger is expected to go live with a global bank in this half.
We anticipate FY 2018 revenues to be in line with revised market
forecasts. We also remain on track to deliver cash flow break even
during FY 2019.
Full interim results for the six months ended 31 December 2017
will be announced on Tuesday, 27th March 2018.
For further information, please contact:
Earthport Plc 020 7220 9700
Phil Hickman, Chief Executive Officer (Interim)
Hank Uberoi, Executive Chairman
Newgate 020 7653 9848
Bob Huxford/James Ash
N+1 Singer (Nomad & Joint Broker) 020 7496 3000
Mark Taylor/James White
Shore Capital (Joint Broker) 020 7408 4090
Toby Gibbs/Stephane Auton
About Earthport
Earthport provides cross-border payment services to banks and
businesses. Through a single relationship with Earthport, clients
can seamlessly manage payments to almost any bank account in the
world, reducing costs and complexity to meet their customers'
evolving expectations of price, speed and transparency.
Earthport offers clients access to global payment capability in
200+ countries and territories, with local ACH options in 65+
countries and an evolving suite of currencies and settlement
options.
Earthport continues to invest in the establishment of in-country
bank partnerships across the world, bringing together its deep
market and regulatory expertise in order to maintain compliant and
commercially competitive services.
The result - a global payments network accessed via a single
relationship, delivering significant cost and operating
efficiencies for banks and businesses servicing high volumes of
lower value payments.
Headquartered in London with regional offices in New York,
Dubai, Miami and Singapore, Earthport is a public company, traded
on the London Stock Exchange (AIM: EPO) with an institutional
investor base including World Bank IFC, Oppenheimer, Blackrock,
Henderson.
Please visit www.earthport.com for more information.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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