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(Alliance News) - Secure payment solutions provider PCI-PAL PLC said Wednesday it is pleased with its progress as its software-as-a-service model delivered a revenue rise in the first half of its financial year.
The stock was trading 11% lower at 37.00 pence on Wednesday morning in London.
For the six months to the end of December, the company recorded revenue of GBP2.0 million, up 74% from GBP1.2 million reported for the comparative period the year prior. Pretax loss narrowed slightly to GBP2.3 million from GBP2.4 million.
Revenue growth was attributed to the benefits of its transition to a software-as-a-service based revenue model.
PCI-PAL's gross margin improved to 67% from 51% the year prior. Cash at the end of the period stood at GBP1.5 million.
The company did not declare a dividend payout for the period.
Looking ahead, PCI-PAL said that while it continued to win contracts, it expects delays resulting from the timing of new deals being signed and the time taken for contracts to go live. These delays are likely to hurt revenue for its current financial ending June 30. This would in turn lead to a higher-than-expected annual pretax loss.
However, the company said it remains confident it will enter the next financial year in a "strong position".
Chief Executive James Barham said: "We will continue our focus on scaling our capabilities across people, process, and technology. 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."
By Ife Taiwo; ifetaiwo@alliancenews.com
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