(Alliance News) - Mobile payment solutions provider Mi-Pay Group said on Monday that full-year trading will be behind market forecasts as it warned of the loss of a major telecommunications client.
Its first half of trading it said, was in line with internal expectations however, anticipating to break even in earnings before interest, taxation, depreciation & amortisation for the six months to June 30. In the first half of last year, it made a GBP100,000 Ebitda loss. Revenue is forecast to rise to GBP1.7 million from GBP1.6 million during the half.
In the last financial year, the lost client accounted for GBP500,000, which represented 13% of Mi-Pay's annual revenue. Mi-Pay did not anticipate the financial impact that would occur in 2019 due to losing the client but did say it will "adjust the group's budgets and spending accordingly to mitigate the expected loss".
Two other clients, which represented a total of 43% of the revenue in 2018, renewed their contracts with Mi-Pay.
A poor economic climate and "uncertainty in the e-commerce payment market with respect to the adoption of new European wider Payment Services Directives in September 2019" will also hurt the company's full-year trading, causing it to lag behind market expectations.
The European Union's revised Payment Services Directives includes a policy which bans companies from issuing additional service charges to customers on payments made using debit or credit cards.
Mi-Pay will release its interim results on September 25.
Shares in the company were untraded on Monday afternoon in London last quoted at 9.50 pence each.