9th Jul 2019 15:37
(Alliance News) - St James House PLC on Tuesday reported a significantly widened annual loss in a "difficult and challenging" period but is looking forward with "optimism and confidence".
Shares in the lottery and payment processing operator were up 31% in afternoon trade in London at 39.40 pence each.
In the year ended January 31, St James House reported a pretax loss of GBP2.8 million compared to a loss of GBP721,000 the year before.
The company's revenue doubled to GBP938,000 from GBP458,000 the year before.
St James House administrative expenses more than tripled in the period to GBP3.0 million from GBP936,000.
"The period covered by these accounts was a difficult and challenging one for all of us working in the group, as well as for our shareholders. Since the new year, we believe we have made solid progress, and approach the second half of the year with optimism and confidence," said Chief Executive Graeme Paton.
"Performance in the payments processing business in the year to January 31 was impacted by the corporate changes undertaken by the group as it realigned itself and began to build a presence in a more competitive market," the company explained.
St James House continued: "The trend of reducing revenue experienced in the Lottery segment for several years was halted in Autumn 2017, and through the year to January 31 small month-on-month revenue growth was experienced, with that trend continuing through the first quarter of 2019."
Since year-end, the company said it has made "solid progress" in its primary business areas.
St James House Market Access business - its payment services unit - has signed a contract to deliver a pre-paid card programme in the UK.
The card programme is for an initial 100,000 prepaid cards, with 5,000 cards due immediately. It is expected that 25,000 cards will be activated within two months of launch and 100,000 within the first nine months. Each card is expected to produce revenues to the group of between GBP3 and GBP5 per month.
Chair Tim Razall said: "Our new client is an exciting and novel business with strong ecological values and a sound offer, for whom prepaid cards are expected to play a significant role in their success. Our recent acquisition of 'Another', combined with the existing Market Access infrastructure, has meant we are able to immediately service their requirements. The increase in payment card processing business, both from existing Market Access efforts and through the acquisition of Another are encouraging for the second half of the year."
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