26th Oct 2016 08:17
LONDON (Alliance News) - Payment network provider Earthport PLC said Wednesday that revenue growth for its most recent financial year was lower than it had originally hoped but that it remains on track to become cashflow positive in 2017.
Earthport booked a GBP7.2 million pretax loss for its financial year ended June 30, narrowed from GBP8.7 million the year prior. Revenue grew 18% to GBP22.8 million from GBP19.3 million year on year.
AIM-listed Earthport said the results were in the range of its revised guidance announced at its capital markets day in April, after slower than expected growth, increased regulatory requirements and a GBP5 million loss due to fraud at its subsidiary EarthportFX forced it to cut its original goals.
Earthport said that in the three months of its current financial year since June 30 it has seen a 34% increase in revenue year on year, with the number of transactions up by 91%.
"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", said Hank Uberoi, chief executive officer of Earthport.
"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", added Uberoi.
Shares in Earthport were down 2.3% at 15.88 pence Wednesday.
By Adam Clark; [email protected]
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Earthport