22nd Nov 2013 10:00
LONDON (Alliance News) - Earthport PLC, a cross-border payments service provider, said Friday it narrowed pretax losses in the year ended June 30 as new customer wins boosted revenue.
Earthport saw a pretax loss of GBP8.1 million, narrowed from GBP9.6 million in the previous year.
The company posted revenue of GBP4.1 million, up from GBP3.0 million in the previous year. Revenue growth was driven by increased activity with existing customers and new client wins such as Bank of America and American Express.
However, revenue growth was hurt by its decision to discontinue three customers as they failed to meet Earthport's compliance criteria, which lost the company around GBP330,000.
Administrative expenses dropped 11% to GBP9.68 million from GBP10.83 million, as the company saw lower staff and contractor costs. However, Earthport said that, due to its increasing customer base and pipeline, it expects to increase its sales team headcount in the year ahead and increase investment in its technology.
Earthport said it is confident for its future as traditional methods of international payments are struggling to cope with increased demand.
Market trends had been favourable, Earthport said, although it cautioned that it can be a slow process to gain traction in the banking industry. The pace of regulatory changes in the industry has also been high as regulations such as the European Commissions' Payment Services Directive, which regulates payment services and payment service providers throughout the EU, proved beneficial for a specialist provider like Earthport.
In the year ahead the company said that it will be focusing on growing revenue from existing and new clients, going live with global banking partners, and further expanding its geographical footprint.
Shares in Earthport were trading up 2.5% at 20.75 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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