Sufficient funds for existing operations but if Hank's on the acquisition trail more funds might be required. The lower the SP to more attractive EPO might be to a predator. Growing revenues, disruptive business model, surely must be attractive. We'll definitely see more M&A activity this year in this sector methinks
anyone thoughts on reason for joint broker RNS...nearly always means a placing coming...however with trading update today it appears they have enough cash at the moment...can anyone expand on this...tks
six month period ended 31 December 2015 ("H1 FY16").
· Financial and Transactional Highlights
o Revenues expected to be in excess of £10.5 million
§ An increase of 18% compared to H1 FY15 § Revenue growth would be higher without the impact of restructuring certain business lines as detailed below. o Transactional revenues comprised more than 85% of total revenue o Gross margin remained consistent at approximately 75% o Cash balance at period end was over £24 million following accelerated investments in regional expansion and product development described below o Monetary value of transactions processed increased more than 60% from H1 FY15
§ Year-end run-rate in excess of $11 billion and growing o Transaction volume increased more than 70% from H1 FY15
· Market Position and Strategic Progress
o The Earthport Payment Network recognised as a unique and credible solution for resolving the inefficiencies and short-comings of the traditional cross-border payments model
o Client growth and accelerating adoption has been achieved across all market segments: § 6 of the top 25 global Banks § 9 of the top traditional and emerging Money Transfer Organisation's § 7 of the key "challenger" international payment companies § Processing payments for some of the fastest growing and leading ecommerce and shared economy companies o Continued focus on expansion of the Earthport Payments Network with the successful establishment of new network partnerships in major Asian and Caribbean markets
o Executed payments across 182 destination countries, in 54 currencies
C'mon guys, today's announcement about a distributed ledger API is a very smart move, and quick! Effectively it provides a connection today to potentially one of tomorrow's huge and game changing payments solutions. If I were an existing EPO customer I'd be very pleased EPO had this option. If I were not yet a customer this would provide a huge differentiator over other payment providers in the market. Really well done EPO for getting a tangible offering on DL in front of the market so quickly. Now what we need is to comercialise it!
Like a lot of AIM stocks EPO is a growth potential story. There are signals in the raw numbers from 2014-15 which show a considerably higher rate of revenue increase than costs and indicate break-even is on the horizon. The nature of the business EPO is in also allows it to generate further revenue increases with lower incremental costs. The boss, Hank Uberoi, is ex Goldman Sachs and has repositioned EPO as a payments service provider to international banks. And finally, EPO is engaging with blockchain technology which could be one of the huge breakthrough technologies, particularly for international foreign currency payments, which is EPO's business area. We should be due a first half update next month I believe - watch that for more signals.
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