22 Jul 2015 07:01
Earthport plc
("Earthport" or the "Company")
Trading Update
Continued Revenue Growth, Significant Customer Traction and Broadening Market Recognition
Earthport: the Emerging Standard for Cross-Border Payments
Earthport (AIM: EPO.L), the global payments company, is pleased to provide an unaudited trading update for the year ended 30 June 2015.
Fiscal Year 2015 Highlights
· Financial Highlights:
o Revenue in excess of £19.25 million | Increase of over 78%
o On a like-for-like basis revenue grew by over 55%
o Gross margin remained consistent at over 77%
o Dollar value of payments grew by over 75% | Annualised YE run-rate in excess of $10 billion and growing
o Transactional revenue was in excess of 85% of total revenue
o Achieved positive cash flow in multiple months during the 2nd half
o Cash balance at FYE 2015 exceeds £30 million:
§ Net cash used in operating activities declined to approximately £3.3 million (FY 2014 £4.4 million), despite significant new investments
· Strong Operational Progress:
o 31 new customers were signed in FY 2015
o 22 customers went live during FY 2015
o Transacting new clients include some of the largest and most sophisticated financial Institutions - HSBC, Santander, and Standard Chartered
o Continued growth in business from existing clients, including Bank of America - with multiple new add-on projects underway
o Success in the Ecommerce and Shared Economy marketplaces, with some of the fastest growing companies contracted
· Growing Pipeline of 33 Customers under Contract and Implementation | Transitioning to Live Stage
o Pipeline with significant embedded revenue | Clients in advanced stages but not yet live
o The size and potential volume from new business is growing, reflecting the acceptance of Earthport as industry standard
o Demand is growing from new segments such as merchant acquirers, travel and mobile payment providers
o Incoming demand with significant opportunities in new geographies including SE Asia, India, Africa, Middle East and Latin America
· Cash Flow Break-Even Update
o Achieved positive cash flow in multiple months during the 2nd Half of FY15
o Given the size and visibility of opportunities the pace of investment has been accelerated:
§ Reverting to consistent positive cash flow will reflect the pace of expenditures and revenue realisation
· Product and Network Expansion
o Recent emphasis on enhanced product innovation and improved network delivery is bearing fruit:
§ Earthport's in-house compliance tools and expertise continues to satisfy regulatory evaluation and scrutiny | A significant advantage versus non-bank providers
o Accelerated global presence with offices and resources being added in Singapore, Dubai and Miami for expansion to SE Asia, Africa, Middle East and Latin America
· Positioned and Endorsed as the Leading Innovator in Cross Border Payments
o Recently, Earthport's CEO was invited to present at the 25th anniversary of the CPMI in Basel - part of the Bank of International Settlements (BIS) - on "Disruptive Innovations and Future Challenges in the area of Payments and Financial Market Infrastructures":
§ Attendees included 20+ Central Banks and several Regulators
§ Earthport was the only company invited that was not part of this 'Peer Group' or an existing Market Infrastructure provider
o Awards and recognitions continue:
§ Quoted Company Awards 2015 | Technology Company of the Year
§ FS Tech | B2B Payments Innovation of the Year
§ Fin Tech 50 | Game-Changer "transforming the future of finance"
§ Best Cross Border Money Transfer organisation for 2015 from CPIco
· New Additions to the Senior Executive Team:
o Simon Adamiyatt (Chief Financial Officer)
o Daniel Marovitz (President of Europe)
o Mia Shernoff (Global Head of Marketing & Market Development)
Summary: Earthport's Strategy
Broad acceptance of the Earthport model is accelerating and the Company has experienced increased demand for its services across industry segments and geographic areas in the last six months. As a result Earthport is investing at an accelerated pace in people, geographic footprint and further product development to maximise medium and long-term success. Given the size of the opportunity and resulting management demands, the Company is increasing focus on significant, demonstrable and recurring revenue, and putting under review some products and segments which are not core to the strategy. We will share more details of our future strategy when we report full year results.
Hank Uberoi, CEO Earthport plc commented: "We are pleased and enthusiastic about the acceptance of the Earthport payment network as a truly valuable and innovative solution in the massive payments market. Our proven product offering combined with our industry position, world-class clients and an experienced and talented leadership team has placed us in the strongest position we have ever been. We are strongly focused on the medium and long term prospects for Earthport which we believe are very significant".
For further information, please contact:
Earthport plc Hank Uberoi, Chief Executive Officer Simon Adamiyatt, Chief Financial Officer | 020 7220 9700 |
Charles Stanley Securities Mark Taylor / Paul Brotherhood |
020 7149 6000 |
Panmure Gordon Fred Walsh / Duncan Monteith / Maisie Atkinson | 020 7886 2500 |
Newgate Tim Thompson / Bob Huxford / Alex Shilov /Helena Bogle |
020 7653 9850 |
About Earthport
Earthport is the largest open global bank payment network, serving financial institutions, ecommerce companies and money transfer organisations. With one connection to Earthport, our clients - representing some of the world's most respected brands - benefit from the wide range of cost effective cross border payment options, coupled with sophisticated validation and compliance services.
Earthport is listed on the Alternative Investment Market (AIM) on the London Stock Exchange. Earthport plc is authorised and regulated by the Financial Conduct Authority under the Payment Service Regulations 2009 for the provision of payment services. One of the FinTech50, Earthport has been defined as a disruptive force, transforming the future of finance, and is also the recipient of the 2015 Grant Thornton Technology company of the year award and FStech Retail Systems' 2014 B2B Payments Innovation of the Year. Find out more at www.earthport.com and on Twitter @Earthport, LinkedIn, YouTube, Slideshare and Google+.