30th Nov 2018 08:40
LONDON (Alliance News) - Earthport PLC said Friday its annual loss narrowed as revenue in its core payments business unit rose 6.3%.
For the financial year to June 30, the payment network provider posted a pretax loss of GBP8.4 million compared to GBP10.2 million a year prior, on the back of a revenue increase and gains on fair value adjustments.
For the recent year, the company realised a GBP757,000 gain on fair value adjustments versus a loss of GBP2.4 million a year ago.
Revenue increased 5.3% year-on-year to GBP31.9 million from GBP30.3 million.
During the year, core payment business revenue, which includes payment transaction revenue, was GBP19.6 million, up 1.6% from GBP19.3 million the year prior. The slight increase reflected the loss of an unnamed "major payment partner" which reduced volumes "materially", Earthport said.
Revenue in the company's FX business unit rose 6.3% to GBP10.2 million from GBP9.6 million.
Professional services revenue - earned developing payment routes for specific customers - grew by 50% in the year to GBP2.1 million from GBP1.4 million the year before.
Chief Executive Officer Amanda Mesler said: "The financial year ending June 30 presented significant challenges for Earthport. Nevertheless, our core capabilities remain strong and our company ended the year with a strengthened balance sheet, giving us the ability to invest in our redefined strategy. I therefore believe we are well positioned to deliver the potential Earthport has always possessed and look forward to the coming year with confidence."
Looking at the current financial year, Earthport said that the increased level of payment business transaction volumes has continued in the new year with volumes "now back above the previous highest recorded levels".
Earthport shares were up 3.1% at 6.38 pence at the market open on Friday.
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