30th Jan 2019 10:42
LONDON (Alliance News) - Mi-Pay Group PLC on Wednesday said it expects to report a narrowed loss in 2018, helped by strong revenue growth and reduced administrative expenses.
In addition, Mi-Pay has appointed Andrew Bowen as chief financial officer on a part-time basis.
Previously, Bowen has held finance director roles at a number of technology telecommunications businesses, Mi-Pay said.
The mobile payment solutions provider traded in line with market expectations, with revenue for 2018 expected to come in at GBP3.3 million, up 10% from GBP3.0 million reported the year prior.
The company has continued to experience strong growth in transactions, delivering a 13% increase in payment transaction values processed during the year to GBP106 million from GBP94 million.
In addition, Mi-Pay has successfully indemnified over GBP43 million of payment transactions for fraudulent activity during the period, using its fraud detection products. This resulted in additional revenue of GBP300,000 in the year.
As a result, the company expects to report a reduction in its operating loss to GBP200,000 in 2018 from GBP600,000 a year earlier.
During the six-month period to December 31, Mi-Pay delivered a profit before interest, tax and depreciation, it said, boosted by a reduction in administrative expenses.
"Delivering underlying profitability in the second half of 2018 was a key target for Mi-Pay and we are pleased to have achieved this important milestone," said Chair Michael Dickerson.
"We expect to see this growth continue as the e-commerce and digital channels increasingly become our clients' core strategic focus for customer engagement and our new fraud management services continue to expand," added Dickerson.
Mi-Pay shares were untraded on Wednesday, last closing at 9.20 pence each.
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