20th May 2015 07:29
LONDON (Alliance News) - Proxama PLC shares were higher Wednesday morning after it won a five-year deal with the Navy Federal Credit Union in the US, although its pretax loss widened in 2014 as revenue ticked lower and it invested in its technology.
The company, which provides banks and card issuers with contactless payment technology and also provides retailers and marketers with technology allowing potential clients to use their smartphones to interact with marketing in the streets, said its Digital Payments division has secured a deal to provide software services for the Navy Federal Credit Union's 4 million-strong debit card portfolio.
Proxama did not disclose any financial details on the contract but noted the Navy Federal Credit Union is the world's largest credit union, with more than USD65 billion in assets and 5 million members.
Proxama also said its pretax loss widened to GBP5.9 million in 2014, from GBP5.4 million in 2013, as revenue fell to GBP650,978 from GBP813,380 and it ramped up technology investments. It cited a shift away from smaller projects to longer-term sustainable revenue streams.
The group also said Chief Executive Neil Garner has indicated he plans to step down from the company after a decade at the helm. He intends to remain with the company until a successor is appointed and is likely to remain with the business in a strategic role.
Proxama shares were up 11% to 2.201 pence on Wednesday, one of the best performers in the AIM All-Share index in early trade.
By Sam Unsted; [email protected]; @SamUAtAlliance
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