Last checked at 5 Sep 2017 07:00
For immediate release | 5 September 2017 |
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014. The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
VIPERA PLC
("Vipera" or the "Company")
Interim results for six months ended 30 June 2017
Vipera (AIM:VIP), the specialist provider of mobile financial services, is pleased to announce its unaudited interim results for the six months ended 30 June 2017.
Period Highlights:
· | Revenue €4.35 million: up 15% vs prior year (H1 2016: €3.78 million) |
· | Operating loss €0.56 million (H1 2016: €0.40 million), reflecting investment spend to accelerate path to profitability |
· | Major contract won with major existing customer in Middle East |
· | Signed initial contracts with two financial institutions - in North America and United Kingdom generated through new Mastercard partnership |
Post-Period Highlights:
· | Acquisition of SoftTelecom in Spain and establishment of Iberia presence |
· | €2.5 million subscription at premium to market price to finance acquisition and raise expansion capital |
· | Dubai office opened |
· | Completion of Codd & Date reorganisation |
Vipera CEO Marco Casartelli commented, "2017 has, so far, been another year of positive progress for Vipera, which has seen further growth in business with both existing and new customers, including wins in new geographies and in addition, the first two contracts with financial institutions generated through our partnership with Mastercard. We also completed the acquisition of SoftTelecom in Spain as part of our expansion strategy, which has provided us with an established presence in Iberia and additional technical resources. We are encouraged by the appetite for our solutions by the financial services and banking industry through a period of market uncertainty. We continue to strive to achieve the targets which we have set ourselves and look forward to progressing our growth further throughout the rest of this year.
"We would like to take this opportunity to thank our continually supportive investor base and our employees for their hard work in the year to date."
Contact:
Vipera PLC Marco Casartelli (CEO) Martin Perrin (CFO)
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Tel: +39 02 8688 2037 Tel: +44 (0) 20 7193 0833
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finnCap Ltd (Nomad and Broker) Adrian Hargrave / Anthony Adams (Corporate Finance) Camille Gochez (Corporate Broking)
| Tel: +44 (0) 20 7220 0500 |
IFC Advisory Ltd (Financial PR and IR) Tim Metcalfe Graham Herring Heather Armstrong | Tel: +44 (0) 203 053 8671 |
About Vipera:
Vipera Plc (AIM:VIP) a cutting edge Mobile Financial Services and Digital Customer Engagement Solutions provider, serves financial institutions worldwide with differentiated mobile banking, card management and customer engagement capabilities based around its proprietary bank grade multi-purpose platform, Motif. Additionally, it provides consultancy and other services to banks and financial institutions. For further information, please visit www.vipera.com.
Chairman's Statement
The first half of 2017 was a productive and eventful period for Vipera.
In March we entered into an agreement with the Arab Bank for Investment & Foreign Trade ("Al Masraf") for a multi phase project covering the design, development and implementation of a mobile banking and bill payment solution.
At the end of April we announced the signing of our largest contract to date. The deal, worth an initial $2.4million will see us develop the next generation of omni-channel banking and payment solutions for one of the UAE's leading financial institutions. Also at that client we rolled out a mobile payment service fully integrated with Visa and Mastercard, and in particular for Mastercard it's one of the first converged wallets in the Middle East.
In early June we announced a multi-year agreement with Bankart to provide an Host Card Emulation (HCE) solution for its client banks. Bankart is a Payment Processor located in Slovenia but which operates across the Balkans region. The project which will deliver implementation income and volume based licence fees, will see Motif deployed in Slovenia to orchestrate Bankart's HCE processes. HCE is the new and universally recognised technology for implementing mobile contact-less payments.
Meanwhile, we have now completed the re-organisation relating to Codd & Date, announced last December. In parallel, we have now opened an office in Dubai: with a team permanently based in UAE, we will be better placed to serve our customers in the region.
We have also been looking at a range of options as to acquisitions and in July we signed a contract for the acquisition of SoftTelecom in Spain which will both give us additional resources for continued product development and, in particular, act as a launchpad for expanding Group sales into the Spanish market with a local delivery capability in the Iberian region.
We have been grateful for the support of our shareholders and at the same time as the acquisition, we raised an additional €2.5 million of capital, placed at a premium to the market price, to help fund both the acquisition and the continued growth of the group.
In recent years we have seen a stronger second half and we expect this trend to continue.
Luciano Martucci
Chairman
Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2017
| Note | Six months to 30 June 2017 | Six months to 30 June 2016 | Year to 31 December 2016 |
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| (Unaudited) | (Unaudited) | (Audited) |
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| € | € | € |
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Revenues | 2 | 4,350,741 | 3,784,497 | 7,905,397 |
Costs of sales |
| (1,819,916) | (1,686,981) | (6,176,479) |
Gross margin |
| 2,530,825 | 2,097,516 | 1,728,918 |
Operating expenses |
| (3,093,406) | (2,500,674) | (2,420,763) |
Operating loss before reorganisation provisions |
| (562,581) | (403,158) | (691,845) |
Reorganisation provisions |
| - | - | (776,238) |
Operating loss after reorganisation provisions |
| (562,581) | (403,158) | (1,468,083) |
Finance income |
| 98 | 457 | 741 |
Finance costs |
| (285) | (9,673) | (20,631) |
Capital gains |
| 6,500 | - | - |
Loss before taxation |
| (556,268) | (412,374) | (1,487,973) |
Taxation |
| (7,021) | (3,086) | (110,984) |
Loss for the period |
| (563,289) | (415,460) | (1,598,957) |
Other comprehensive income |
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Items that may be subsequently reclassified to profit or loss: |
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Currency translation difference |
| (119,382) | (800,095) | (920,569) |
Acquisition of non-controlling interest |
| (119,504) | - | - |
Total comprehensive income for the period |
| (802,175) | (1,215,555) | (2,519,526) |
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Loss for the period attributable to: |
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Owners of the parent |
| (539,500) | (418,277) | (1,610,190) |
Non-controlling interest |
| (23,789) | 2,817 | 11,233 |
Loss for the period |
| (563,289) | (415,460) | (1,598,957) |
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Total comprehensive income for the year attributable to: |
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Owners of the parent |
| (750,362) | (1,218,372) | (2,530,759) |
Non-controlling interest |
| (51,813) | 2,817 | 11,233 |
Total comptehensive income for the year |
| (802,175) | (1,215,555) | (2,519,526) |
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Earnings per ordinary share attributable to owners of the parent during the period (expressed in €cents per share) |
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Basic and diluted | 3 | (0.23) | (0.16) | (0.62) |
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Consolidated Statement of Financial Position
As at 30 June 2017
Company number 05383355
| Note | 30 June 2017 | 30 June 2016 | 31 December 2016 |
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| (Unaudited) | (Unaudited) | (Audited) |
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| € | € | € |
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Non-current Assets |
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Goodwill |
| 1,667,907 | 2,444,145 | 1,667,907 |
Intangible assets |
| 3,181,166 | 3,009,510 | 3,096,676 |
Deferred taxation |
| 398,138 | 519,424 | 456,492 |
Property, plant and equipment |
| 268,748 | 54,881 | 146,755 |
Total non-current assets |
| 5,515,959 | 6,027,960 | 5,367,830 |
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Current Assets |
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Trade and other receivables |
| 2,994,415 | 3,199,197 | 3,864,041 |
Cash and cash equivalents |
| 1,369,986 | 2,906,080 | 2,052,005 |
Total current assets |
| 4,364,401 | 6,105,277 | 5,916,046 |
Current liabilities |
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Trade and other payables |
| (2,908,687) | (2,679,027) | (2,977,676) |
Borrowings |
| (250,537) | (466,886) | (548,446) |
Deferred revenue |
| (332,464) | (498,786) | (685,893) |
Current taxation |
| (1,002) | (145,967) | (18,089) |
Total current liabilities |
| (3,492,690) | (3,790,666) | (4,230,104) |
Net current assets |
| 871,711 | 2,314,611 | 1,685,942 |
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Non-current liabilities |
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Deferred taxation |
| - | - | - |
Total non-current liabilities |
| - | - | - |
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Net Assets |
| 6,387,670 | 8,342,571 | 7,053,772 |
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EQUITY |
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Share capital | 4 | 7,091,571 | 7,068,808 | 7,068,808 |
Share premium |
| 9,378,576 | 9,281,835 | 9,281,835 |
Reverse acquisition reserve |
| (4,016,334) | (4,016,334) | (4,016,334) |
Shares to be issued |
| - | - | - |
Foreign currency translation reserve |
| (761,895) | (522,039) | (642,513) |
Retained loss |
| (5,458,502) | (3,667,350) | (4,844,091) |
Equity attributable to owners of the parent |
| 6,233,416 | 8,144,920 | 6,847,705 |
Non-controlling interest |
| 154,254 | 197,651 | 206,067 |
Total equity |
| 6,387,670 | 8,342,571 | 7,053,772 |
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Consolidated Statement of Changes in Equity
For the six months ended 30 June 2017
Attributable to equity shareholders of the parent
Group | Share capital | Share premium | Reverse acquisition reserve | Foreign currency translation reserve | Retained loss | Total |
Non-controlling interest | Total |
| € | € | € | € | € | € | € | € |
As at 1 January 2017 | 7,068,808 | 9,281,835 | (4,016,334) | (642,513) | (4,844,091) | 6,847,705 | 206,067 | 7,053,772 |
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Loss for the period | - | - | - | - | (539,500) | (539,500) | (23,789) | (563,289) |
Other comprehensive income for the period - items that may be subsequently reclassified to profit or loss |
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Currency translation difference | - | - | - | (119,382) | - | (119,382) | - | (119,382) |
Acquisition of non-controlling interest | - | - | - | - | (91,480) | (91,480) | (28,024) | (119,504) |
Total comprehensive income for the period | - | - | - | (119,382) | (630,980) | (750,362) | (51,813) | (802,175) |
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Share based payment transactions | - | - | - | - | 16,569 | 16,569 | - | 16,569 |
Shares issued net of issue costs | 22,763 | 96,741 | - | - | - | 119,504 | - | 119,504 |
Total transactions with owners, recognized directly in equity | 22,763 | 96,741 | - | - | 16,569 | 136,073 | - | 136,073 |
As at 30 June 2017 | 7,091,571 | 9,378,576 | (4,016,334) | (761,895) | (5,458,502) | 6,233,416 | 154,254 | 6,387,670 |
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Group | Share capital | Share premium | Reverse acquisition reserve | Foreign currency translation reserve | Retained loss | Total |
Non-controlling interest | Total |
| € | € | € | € | € | € | € | € |
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As at 1 January 2016 | 7,068,808 | 9,281,835 | (4,016,334) | 278,056 | (3,277,903) | 9,334,462 | 194,834 | 9,529,296 |
Loss for the period |
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Other comprehensive income for the period - items that may be subsequently reclassified to profit or loss | - | - | - | - | (418,277) | (418,277) | 2,817 | (415,460) |
Currency translation difference |
|
|
| (800,095) |
| (800,095) |
| (800,095) |
Total comprehensive income for the period | - | - | - | (800,095) | (418,277) | (1,218,372) | 2,817 | (1,215,555) |
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Share based payment transactions |
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Shares issued net of issue costs | - | - | - | - | 28,835 | 28,835 | - | 28,835 |
Total transactions with owners, recognized directly in equity |
- |
- |
- |
- |
28,835 |
28,835 |
- |
28,835 |
As at 30 June 2016 | 7,068,808 | 9,281,835 | (4,016,334) | (522,039) | (3,667,345) | 8,144,925 | 197,651 | 8,342,576 |
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As at 1 January 2016 | 7,068,808 | 9,281,835 | (4,016,334) | 278,056 | (3,277,903) | 9,334,462 | 194,834 | 9,529,296 |
Loss for the financial year | - | - | - | - | (1,610,190) | (1,610,190) | 11,233 | (1,598,957) |
Other comprehensive income for the period - items that may be subsequently reclassified to profit or loss |
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Currency translation difference | - | - | - | (920,569) | - | (920,569) | - | (920,569) |
Total comprehensive income for the year | - | - | - | (920,569) | (1,610,190) | (2,530,759) | 11,233 | (2,519,526) |
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Share based payment transactions | - | - | - | - | 44,002 | 44,002 | - | 44,002 |
Non-controlling interest arising on business combination | - | - | - | - | - | - | - | - |
Shares issued net of issue costs | - | - | - | - | - | - | - | - |
Total transactions with owners, recognized directly in equity | - | - | - | - | 44,002 | 44,002 | - | 44,002 |
As at 31 December 2016 | 7,068,808 | 9,281,835 | (4,016,334) | (642,513) | (4,844,091) | 6,847,705 | 206,067 | 7,053,772 |
Group Cash Flow Statements
For the six months ended 30 June 2017
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| Six months to 30 June 2017 | Six months to 30 June 2016 | Year to 31 December 2016 |
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| (Unaudited) | (Unaudited) | (Audited) |
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| € | € | € |
Loss for the period before tax |
| (556,268) | (412,374) | (1,487,973) |
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Impairment provisions |
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|
| 776,238 |
Depreciation of property, plant and equipment |
| 39,173 | 10,108 | 24,232 |
Impairment of intangible assets |
| 102,885 | 3,300 | 39,190 |
Loss/(Gain) on sale of fixed assets |
| 73 | 185 | (13,168) |
Expenses settled by the issue of shares |
| 16,569 | 28,835 | 44,002 |
Foreign exchange losses |
| (11,162) |
| (348,780) |
Finance income / (costs) net |
| (98) | 9,216 | 19,890 |
Decrease / (Increase) in trade and other receivables |
| 869,626 | (102,550) | (767,394) |
(Decrease) / Increase in payables |
| (720,327) | 284,330 | 851,646 |
Cash generated from/(used in) operations |
| (259,529) | (178,950) | (862,117) |
Interest expense |
| (285) | (9,673) | (20,631) |
Tax paid |
| 29,189 | (21,011) | (190,516) |
Net cash generated from/(used in) operating activities |
| (230,625) | (209,634) | (1,073,264) |
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Cash flows generated (used in) investing activities |
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Purchases of intangible assets |
| (261,673) | (245,456) | (421,840) |
Purchases of property, plant and equipment |
| (159,768) | (16,622) | (123,965) |
Interest received |
| 98 | 457 | 741 |
Net cash used in investing activities |
| (421,343) | (261,621) | (545,064) |
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Net increase in cash and cash equivalents |
| (651,968) | (471,255) | (1,618,328) |
Exchange (losses) |
| (30,051) | (462,307) | (169,309) |
Cash and cash equivalents at beginning of period |
| 2,052,005 | 3,839,642 | 3,839,642 |
Cash and cash equivalents at end of period |
| 1,369,986 | 2,906,080 | 2,052,005 |
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Major non-cash transactions
During the period, the Company issued 1,929,560 new ordinary shares in consideration for the acquisition of of a further 7.12% of the issued share capital of Codd & Date srl.
1 Basis of preparation
The financial information contained in this half year financial report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial information for the half years ended 30 June 2017 and 30 June 2016 has been neither audited nor reviewed by the auditors.
The figures and financial information for the period ended 31 December 2016 are extracted from the latest published audited financial statements of the Group and do not constitute the statutory financial statements for that period.
The audited financial statements for the period ended 31 December 2016 have been filed with the Registrar of Companies. The report of the independent auditors on those financial statements contained no qualification or statement under section 498(2) or section 498(3) of the Companies Act 2006.
The financial information has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) as adopted by the European Union and IFRIC interpretations. The financial information has been prepared under the historical cost convention. The statutory financial statements are prepared in accordance with IFRSs as adopted by the European Union.
The Group has applied consistent accounting policies in preparing the interim financial statements for the six months ended 30 June 2017, the comparative information for the six months ended 30 June 2016, and the financial statements for the period ended 31 December 2016.
As permitted, the Company has chosen not to adopt IAS 34 "Interim Financial Statements" in preparing this interim financial information.
The directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing these half-yearly financial statements.
2 Total revenue
Total revenue comprises:
| Six months to 30 June 2017 | Six months to 30 June 2016 | Year to 31 December 2016 |
| (Unaudited) | (Unaudited) | (Audited) |
Revenue from external customers: | € | € | € |
Licence and deployment fees | 2,011,130 | 1,693,328 | 3,890,841 |
Consultancy | 1,577,988 | 1,540,071 | 2,875,060 |
Transactional /loyalty revenue | 168,627 | 105,015 | 221,974 |
Support and maintenance charges | 592,800 | 445,826 | 916,573 |
Other fees | 196 | 257 | 949 |
| 4,350,741 | 3,784,497 | 7,905,397 |
3 Earnings per share
Basic earnings per share has been calculated by dividing the loss on ordinary activities after taxation by the weighted average number of shares in issue during the year. None of the share based payments were potentially dilutive at the year end and so there is no difference between the basic and diluted loss per share.
| Six months to 30 June 2017 | Six months to 30 June 2016 | Year to 31 December 2016 |
| (Unaudited) | (Unaudited) | (Audited) |
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Loss on ordinary activities after taxation attributable to owners of the parent | €587,078 | €418,277 | €1,610,190 |
Number of shares | 259,257,725 | 258,490,165 | 258,490,165 |
Earnings per share (Euro cents) | (0.23) | (0.16) | (0.62) |
4 Share capital
Called up share capital
At 30 June 2017, there were 260,419,725 Ordinary shares of 1p each in the Company in issue.
Warrants and options
As at 30 June 2017, there were 11,000,000 warrants in issue and options to subscribe for 13,475,000 outstanding.
5 Availability of Interim Report
Copies of the Company's Interim Results are available on the Company's website www.vipera.com .