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Earthport PLC (EPO)

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Wednesday 16 July, 2014

Earthport PLC

Trading Update

RNS Number : 4124M
Earthport PLC
16 July 2014
 



16 July 2014

Earthport plc

("Earthport", or, the "Company")

 

Trading Update

 

Accelerating performance as Earthport signs with leading industry players

 

Earthport (AIM: EPO.L), the cross-border payments services provider is pleased to provide an unaudited trading update for the year ended 30 June 2014.

 

Highlights:

·      Revenue expected  to exceed  £10.7 million, an increase of over 160% (FY 2013: £4.1 million)

Includes eight months contribution from Baydonhill, following its acquisition in November 2013

On a like-for-like basis, revenue increased by over 60%, demonstrating an acceleration in underlying business performance

 

·      Cash balance at the end of the year amounted to over £9 million (FY 2013: £13.4 million)

Net cash used in operating activities decreased to approximately £5.3 million (FY 2013: £5.9 million), including approximately £700,000 of exceptional acquisition related costs

Net cash used in the second half of the year was approximately £2 million (H2 2013: £3.3 million)

 

·      Strong operational progress:

33 new customers were signed during the year (FY 2013: 21)

14 customers went live during the year (FY 2013: 13)

 

·      Pipeline of 25 customers under contract and in implementation stage ahead of going live (FY 2013: 7)

With many clients yet to go live, and with several in advanced stages in the pipeline, there is significant embedded revenue potential

 

Revenue growth demonstrates acceleration in business performance

 

We are pleased to report strong trading during the year, driven by both transactional and professional service revenue growth. Revenue increased by more than 160% to over £10.7 million, including eight months of revenue contribution from the acquisition of Baydonhill. On a like-for-like basis, revenue increased by over 60% over the prior year showing an acceleration of the underlying business in the second half of the year. The monthly run rate of revenue continues to show strong growth, with June 2014 revenue 40% higher than those in December 2013.

 

Decrease in cash consumption reflects pivotal point

 

Like-for-like net cash used in operating activities decreased to £4.5 million (FY 2013: £5.9 million), reflecting a turning point in terms of cash used versus revenue growth.  Net cash used in the second half of the year showed a continued decrease to approximately £2 million versus £3.3 million in H2 2013.

 

Strong adoption by industry leaders

 

During the 2014 financial year, Earthport contracted with some of the world's leading banks and money transfer organisations. Key clients signed during the year include Bank of America Merrill Lynch, HSBC, State Street Corporation, PNC Bank, Aktif Bank and World Remit. Bank of America Merrill Lynch is live and transacting for some parts of its business, contributing to the growth in revenue. Other business units within Bank of America Merrill Lynch are currently integrating with Earthport and are expected to go live over the next 6-12 months. HSBC is in active integration and expected to go live within the next 6 months.

 

Baydonhill acquisition successfully adds strategic value

 

The acquisition of Baydonhill in November 2013 added significant strategic value to Earthport's product offering and positioning. The integration is progressing well and has increased Earthport's unique and compelling white-labelled service. No other business can offer local payments into 63 countries  across 100 currencies, supported by a sophisticated compliance process and scalable infrastructure.

 

Operations strengthened for further acceleration in growth

 

Investments made in previous years in areas such as in global compliance capabilities and organisational talent have enabled Earthport to initiate, develop and contract with some of the world's largest banks despite a highly compliance focused environment. Earthport expects its compliance capabilities will continue to be a structural advantage for the business.

 

During the 2014 financial year, Earthport was pleased to appoint Jorge Moran to the board as Non-Executive director, a highly experienced banking professional (most recently CEO and President of Sovereign Bank and Santander US country head). Additionally Earthport further strengthened its in house expertise through the appointment of Sajeev Viswanathan, an experienced banker and entrepreneur as President - Global head of Strategy and Product, responsible for Earthport's global network expansion and product development.

 

Hank Uberoi, CEO Earthport plc commented "Broad acceptance of the Earthport model is gathering pace as evidenced by the contracts signed in the year with some of the largest and most sophisticated banks and money transfer organisations in the world. With many of these yet to go live, there is significant embedded revenue potential within our existing client base and we have several other major opportunities in advanced stages of the sales pipeline. We therefore look to the future with confidence."

 

The Company will announce its Full Year audited results in October 2014.

 

For further information, please contact:

 

Earthport plc

Hank Uberoi

 

020 7220 9700

Charles Stanley Securities

Mark Taylor / Paul Brotherhood

 

020 7149 6000

Panmure Gordon

Fred Walsh

 

020 7886 2500

Newgate Threadneedle

Fiona Conroy / Caroline Forde / Josh Royston / Jasper Randall

 

020 7653 9850

 

About Earthport

 

Earthport plc, a regulated global financial services organisation, specialises in the provision of a white label cross-border payments service.

 

Through its innovative payments framework, specifically designed for high volumes of low value cross-border payments, Earthport provides a cost-effective and transparent service for secure international payments. Earthport's clients include banks, money transfer organisations, payment aggregators, e-commerce businesses and foreign exchange businesses. Through Earthport's well established payments infrastructure, clients can clear and settle payments directly to banked beneficiaries in 60 countries.

 

The company is headquartered in London and is listed on the Alternative Investment Market (AIM) on the London Stock Exchange. It operates globally with additional regional offices in Dubai and New York. Earthport plc is authorised and regulated by the Financial Conduct Authority under the Payment Service Regulations 2009 for the provision of payment services. To learn more, please visit www.earthport.com and follow us via RSS or on social channels, Twitter @Earthport, LinkedIn, Youtube and Slideshare.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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