Last checked at 26 Mar 2018 07:00
For immediate release 26 March 2018
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
VIPERA PLC
("Vipera" or the "Group" or the "Company")
Trading update
Vipera (AIM:VIP), the specialist provider of mobile financial services, is pleased to announce a trading update in respect of the year ended 31 December 2017.
Group revenues for the year increased 27% to €10.1 million (2016: €7.9 million). Part of the revenue growth is attributable to the acquisition of SoftTelecom Desarrollos I Mas D S.L. ("SoftTelecom") in Spain, announced on 27 July 2017, but even without the contribution from SoftTelecom revenues would have increased by 20%, versus 16% for 2015/16.
Recurring revenues (being per-user, loyalty and support & maintenance revenues) grew by 43% to €1.6 million (2016: €1.1 million).
Gross margins increased from 22% to 32%, in part from increased licence sales, but primarily from a larger scale of operations.
Adjusted underlying EBITDA for the year is expected to show a small loss for the year. This reflects, inter alia, €250,000 of transaction costs incurred in relation to the acquisition of SoftTelecom, additional costs were incurred in relation to the set up of a new subsidiary in Dubai to meet growing demand in the area, and foreign exchange movements. In addition, operating profit will be impacted by an evolution in the Group's depreciation policy to depreciate capitalized intellectual property, absorbing a charge of €260,000 versus €39,000 for 2016.
Cash as at 31 December 2017 was €1.9 million (31 December 2016: €2.1 million). Trade receivables are higher, commensurate with the growth in revenues, but as a percentage of annual revenues, have declined slightly.
The Group's revenue growth has come from both existing clients and new customer wins. The Board continues to look forward to the remainder of 2018 and beyond with great confidence, as the Group continues to expand its product offering within the evolving and growing mobile financial services market.
The Company intends to announce its financial results for the year ended 31 December 2017 in early May 2018.
Marco Casartelli, Vipera's Chief Executive Officer, commented: "I am delighted that Vipera has continued to show strong organic growth, which has been supplemented by the acquisition of Soft Telecom. It is also pleasing that the gross margin for the year has improved from approximately 22% to 32%. Whilst we have still made a small loss at EBITDA level, with the acquisition of Soft Telecom and the funding in place, Vipera is in a strong position to take advantage of the changing finance landscape in 2018 and beyond."
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) Camile Gochez (Corporate Broking)
| Tel: +44 (0) 20 7220 0500 |
IFC Advisory Ltd (Financial PR and IR) Tim Metcalfe Heather Armstrong Graham Herring | Tel: +44 (0) 203 934 6630 |
About Vipera:
Vipera Plc (AIM:VIP) a cutting edge Mobile Financial Services and Digital Customer Engagement Solutions provider, serves financial institutions and retailers 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