LONDON (Alliance News) - Mi-Pay Group PLC, which listed on AIM in a reverse takeover of a cash shell earlier this year, said underlying trading is in line with management expectations and said its key performance metrics are strong.
In a statement, the mobile payments company, which provides services to mobile network operators and mobile virtual network operators, said it has grown its number of live clients by 8 to 21 over the last 12 months.
"We have invested heavily in our products and offerings, commercial proposition, technical solutions and global delivery capability and anticipate seeing the benefits of this to be demonstrated in 2015. Following these investments we expect to deliver a reduced cost base for longer term scalable growth as our new technology solutions are delivered. The focus for the remainder of 2014 is therefore on growth and operational efficiencies. We are already seeing the fruits of this investment as we deliver new contracts in the UK and Philippines in 2014, and implement new customer products relevant to all clients, to drive increased penetration," Chief Executive Michael Dickerson and Chairman Seamus Keating said in a joint statement.
Pretax loss widened to GBP3.1 million in the six months ended June 30 from GBP803,680 in the corresponding period last year. Revenue, consisting primarily of transaction fees, fell to GBP1.4 million from GBP1.6 million due to the loss of a client. This resulted in a GBP400,000 comparative loss in revenue over the period.
Mi-Pay said the loss of the client and revenue was disappointed but said it resulted in a "significant" improvement in the spread of its client base and revenue. Administrative expenses rose to GBP3.6 million from GBP1.6 million, largely due to GBP1.2 million of listing costs.
Keating said the reverse takeover and listing completed in April provided Mi-Pay with the resources to deliver its potential.
"The board is pleased with the progress made by the company during this period and the achievements recorded against the operational targets that we set ourselves. The very positive feedback from both new and existing clients represents clear validation of our vision and the global scale of the large commercial opportunity," Keating said.
"Mi-Pay is entering a new phase, having invested heavily in technical solutions, its commercial proposition, and global delivery capability and anticipates seeing the benefits of this to be demonstrated in 2015. Mi-Pay has a strong platform and we are ideally positioned to execute on the significant global opportunity ahead," Keating added.
Mi-Pay shares were Wednesday quoted down 3.9% at 37.00 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
Copyright 2014 Alliance News Limited. All Rights Reserved.
