29th Sep 2015 09:20
LONDON (Alliance News) - Payments company Earthport PLC on Tuesday said its pretax loss widened due to higher administrative costs, which offset a big rise in both total and like-for-like revenue.
Earthport said its pretax loss in the year to the end of June was GBP8.7 million, compared to a GBP6.3 million loss a year earlier, thanks primarily to the group taking on full-year costs of Baydonhill, the foreign exchange provider acquired in 2013. These costs were combined with higher share-based payments and warrant costs.
The rise in costs was enough to offset a big rise in revenue in the year, up to GBP19.3 million from GBP10.8 million, as like-for-like revenue grew 55% and transactional revenue grew to 84% of total revenue. Earthport signed 31 new clients in the year, slightly down from the 33 signed the year before, but saw 22 clients go live, up from 14.
The group also benefited from continued growth in its contracts with existing clients, particularly Bank of America.
"Over the past year broad acceptance of the Earthport model has accelerated, enabling the company to experience increased demand and recognition for its services across industry segments and geographic areas," said Chief Executive Hank Uberoi.
"We will continue to focus on significant, demonstrable and recurring revenue, targeting financial institutions, money transfer organisations, high growth ecommerce and payment aggregators. Earthport is in the best position it has ever been in to take advantage of the significant opportunity in front of us," Uberoi added.
Shares in Earthport were down 0.3% to 41.00 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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