LONDON (Alliance News) - SafeCharge International Group Ltd on Thursday said its pretax profit fell in the first half of the year as its shift in focus towards high-quality low-risk customers created margin pressure.
The payments technology company's pretax profit for the six months to June 30 was USD13.2 million, a 2.5% drop from its USD13.5 million profit the previous year as the company's gross profit margin narrowed to 54.8% from 57.3%.
SafeCharge said the margin change was in accordance with its "strategy to focus on high quality customers and to enter into new markets".
Other loss contributors included the company's salary and employee expenses, which increased to USD13.5 million from USD10.2 million year-on-year. Depreciation and amortisation likewise increased to USD3.6 million from USD2.2 million.
The company also recorded an increased share-based payments charge of USD765,000 from USD513,000 and a rise in premises and other costs to USD1.6 million from USD1.3 million. Other expenses increased to USD2.5 million from USD3.3 million.
Revenue grew 26% in the period, reaching USD66.8 million from USD53.0 million due to new customers and expanded existing customer relationships.
The company raised its interim dividend by 15% to 8.86 US cents from 7.69 cents.
"The group has enjoyed a good start to the second half of 2018, benefiting from continued growth from our existing customers and the launch of new clients. The board remains confident that the outcome for the year will be in line with market expectations, with revenue at the top-end of market expectations," the company said.
SafeCharge also said Thursday it is looking to recruit a successor to the position of non-executive chairman in anticipation of the retirement of its current chair, Roger Withers. Non-Executive Director Jeremy Nicholds has resigned and will leave the company at the end of the month, the company added.
Shares in SafeCharge were up 3.4% at 315.90 pence on Thursday.
