23rd Dec 2015 09:00
LONDON (Alliance News) - MoneySwap PLC on Wednesday said it is continuing talks over a potential investment in the company, as it reported a widened pretax loss for its first half.
MoneySwap provides payment products for online and point-of-sale merchants licensed for UnionPay in the UK, and provides overseas transactions through the UnionPay MoneyExpress service.
For the half year to end-September, MoneySwap reported a pretax loss of USD2.1 million, widened from USD1.7 million a year before, as a rise in revenue to USD134,710 from USD101,262 was offset by higher administrative and operating costs.
The company attributed the rise in operating expenses to the commission it paid for GBP2.3 million in investment it received during the period. In the half year, MoneySwap was primarily financed through the GBP2.3 million investment in April, which involved the company issuing 287.5 million new shares.
MoneySwap also received loans of USD254,000 from an undisclosed unrelated party during the half year, it said. Following the half-year end, it received a further loan of USD430,000 from this same third party, meaning its total loan outstanding to this third party is now USD684,000.
MoneySwap said it will need to raise additional funds in the near term in order to continue its operations at its current level. It is in talks for a potential investment, although it said it isn't yet known if this investment will take the form of debt or equity.
Shares in MoneySwap were untraded Wednesday morning. The stock last closed at 0.250 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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