LONDON (Alliance News) - Earthport PLC on Monday said it expects first-half revenue to rise by 18%, although growth would have been higher without the effects of restructuring some of the cross-border payments company's business lines during the period.
The AIM-listed company said it expects to report revenue in excess of GBP10.5 million in the six months to the end of 2015, with transactional revenue comprising more than 85% of the total and margins remaining "consistent" at about 75%. Cash on the balance sheet exceeded GBP24.0 million at the end of December.
"Certain non-core businesses were modified, thus resulting in some foregone short-term revenues in favour of more scalable prospective opportunities," Earthport said.
In addition, "de-emphasised businesses" included some traditional foreign exchange activities as well as activities focused on individual clients.
"Enhanced focus areas include expansion into Asia and certain specific large opportunities in India and the Middle East-Asia corridors, details of which will be shared as they progress," the company added.
Earthport said it will continue to invest in expanding its geographic footprint and product development. The company plans on sharing more details about its strategy following the release of its first-half results in March.
Separately, the company named N+1 Singer and Shore Capital as joint brokers to the company, joining nominated adviser and existing broker Panmure Gordon.
Shares in Earthport were down 9.4% at 29.00 pence on Monday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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