PCI-PAL PLC (AIM: PCIP), the global provider of secure payment solutions, is pleased to announce its unaudited interim results for the six months to 31 December 2019.
Financial Highlights for the Period
· Revenue increased 74% year on year to £2.0 million (2018: £1.2 million)
· Gross margin improved to 67% (2018: 51%)
· Recurring revenues represent 85% of total revenue (2018: 84%)
· New contract annual recurring licence sales (“ACV”) of £1.2 million (2018: £1.3 million)
· TACV1 now stands at £5.2 million (2018: £3.4 million) reflecting a 53% increase year on year
· Loss from operating activities of £2.3 million (2018: £2.5 million)
· Cash of £1.5 million (30 June 2019: £1.5 million) and net debt of £0.02 million (30 June 2019: net cash £1.5 million)
· Deferred revenue of £4.0 million (2018: £2.3 million) at period end
1 TACV is the total annual recurring revenue of all signed contracts, whether invoiced and included in deferred revenue or still to be deployed and/or not yet invoiced
Strategic Highlights in period
· Recurring revenue model proven with record revenue growth year on year
· Stand-out six months for the North American business signing 49% more ACV than the entire previous financial year in the region
· Signed Group’s second largest contract in the U.S. with ACV of $566,000 (approximately £434,000)
· 82% of new sales contracts for the Group generated from channel partners (2018: 75%)
· Customers live across all six global regional instances of our platform across EMEA, North America, and ANZ
· Won Partner of the Year for EMEA with Genesys AppFoundry
· New technology partnerships announced with Avaya and Cisco
· New Chairman appointed with significant international technology industry experience
Current Trading
Highlights since 31 December 2019 include:
· Timing of large contract wins and delivery of contracts contributing to a delay in anticipated revenue against market expectations for the year
· A contract win with a US subsidiary of a FTSE100, displacing a competitor’s legacy hardware solution.
· Further competitor displacement at a new reseller, a leading Genesys Value Added Reseller (“VAR”) in Ireland, which has included the partnership’s first signed customer deal.
· Contract to provide PCI Pal Agent Assist to one of the world’s leading technical standards agencies.
· Launched PCI Pal Digital, a secure payments offering for digital engagement channels including webchat, social media, SMS, email, and WhatsApp.
Commenting on the results for the period, James Barham, Chief Executive Officer said:
“I am pleased with the progress we have made in the first half of the financial year and can report continuing momentum in contracts being won as we enter the second half.
“We are now seeing the benefits of our SaaS-based revenue model coming through, with revenue increasing significantly year-on-year. This revenue growth is underpinned by our growth in TACV, a key growth metric illustrating the recurring nature of our revenue model. As a fast-growing, small technology company we are naturally facing challenges along the way, in particular around timing of new deals being signed and time to go live (“TTGL”) with new contracts.
“These timing delays will have an adverse impact on our revenue for the current financial year against market expectations which will have a consequential effect on our losses before tax which will be slightly higher than current market expectations. Given our pipeline and our continued optimism in delivering against this pipeline in the second half of the current financial year, we are confident that our TACV at the year-end will put the Company in a strong position as we enter the next financial year.
“We will continue our focus on scaling our capabilities across people, process, and technology as we execute against our strategic objectives and maintain the strong growth of this business. We will capitalise on the partnerships we have put in place, as well as our true-cloud platform, and our unique position as the only company in our space capable of delivering all of this globally.”
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