LONDON (Alliance News) - Mi-Pay Group PLC on Wednesday said its first-half pretax loss narrowed, as revenue improved and costs fell.
The payments company provides services to mobile network operators and mobile virtual network operators. Its infrastructure enables pre-paid mobile devices to be topped up on websites and applications on mobile phones and social media.
Mi-Pay's pretax loss narrowed to GBP1.1 million in the six months to June 30, from GBP3.6 million in the corresponding half the prior year.
Underlying revenue, excluding the loss of a client in 2013, rose to GBP1.5 million from GBP1.1 million. Taking that client into account, revenue was up to GBP1.5 million from GBP1.4 million.
Margins improved in both transaction and professional services, with the company citing its decision to move its fraud management activities in house.
Administrative expenses fell to GBP1.9 million from GBP3.6 million.
Mi-Pay said it has made "significant progress" towards its objective of becoming cash generative in 2016.
"Having invested heavily in 2014 the benefits of this are now being demonstrated in the group's performance at every level with increased revenues, gross profits and reduced administrative expenses," Chief Executive Michael Dickerson and Chairman Seamus Keating said in a statement together.
"We expect to continue to reduce cash burn on a month-by-month basis, see continued revenue growth from all of our clients and continue to improve our gross margins," Dickerson and Keating said in a statement.
"Continued investment into our fraud management capabilities and delivery in 2015 of a flexible, security compliant global infrastructure environment, will provide us with a platform to grow more effectively and with greater stability," they added.
Now, the company is turning its focus to becoming profitable, while continuing to attract new clients by targeting "the increasing need" for more mobile and social media-based payment services in a "safe, secure and fully managed environment".
"The key market of Asia remains an opportunity and one that we expect to deliver growth for us over the longer term," Dickerson and Keating said.
Shares in Mi-Pay were down untraded at 26.55 pence Wednesday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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