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Mi-Pay Group Share Discussion Threads
Showing 26 to 48 of 50 messages
|Has everyone lost interest here?
Despite the share price, the interims in September showed some progress. Expectations for full year is revenue of £3.2-3.5m with margins in line with H1. That would give GP of £2.0 - 2.2m. Assuming a similar level of overheads in H2 gives a operating loss of £500-300k compared to H1 loss of £250k. So possibly close to breakeven. Next year Rodders, next year...|
|Finals announced today and it seems to be very much steady as she goes
There's some commentary on the results from the company broker over on Directorstalk:
Zeus Capital Analysts said this morning:
“Mi – Pay has announced a good set of FY15 results morning showing significant operational development. The group has delivered a good trading performance with underlying revenue increasing 25.9% to £3.0m (FY14: £2.4m), with both transaction services (+12.6%) and professional services (13.8%) showing underlying YoY growth. Importantly revenue was in line expectations while Gross Profit was ahead due to an 11% improvement in margin. The group’s strong underlying trading performance has been driven by the reorganisation of the business, increased investment in the platform and cost reductions implemented in 2014. The business remains on track to become cash flow positive in FY16 and forecasts for FY16 and FY17 unchanged off the back of these encouraging results.
§ Good final results: Headline revenue was in line estimates at £3.0m, showing an 11% improvement on the previous year, but up an impressive 25.9% underlying. This was driven by growth in both professional and transaction services. Gross profit was 17.9% ahead of our forecasts at £1.7m, with an 11% improvement in gross margins on the previous year, continuing the trends of H115. Gross margins have steadily improved from 34% in FY11 to 56% in FY15, demonstrating the group’s ability to consistently generate annual improvements. As a result, confidence in the business ability to grow profitability increases. The company made an operating loss for the year of £1.4m (FY14: -£4.2m) a substantial improvement on the previous year and provides confidence that management will meet its target of becoming cash flow positive during FY16.
§ Operational improvements: Transaction volumes increased 48%, in line with the performance reported at the interims. Management has made targeted investment in the platform infrastructure, implementing an in house fraud management system, which has now been rolled out to over 90% of the group’s clients during the year. Despite these operational upheavals, the group maintained transaction success rates at 86%, in line FY14, while managing to reduce fraud levels by 0.02% to 0.09% of transaction value. The insource of the fraud engine and development of their own technology solution and the subsequent reduction in fraudulent transactions was a key driver of the c. 11% Group gross margin improvement. The group also successfully migrated its customers to a new infrastructure platform, which allowed for the standardisation of the underlying technology, this will enable the group to achieve further scaling of the business in a cost efficient manner.
§ Outlook: Forecasts remain unchanged, noting that underlying assumptions for FY16 are challenging with an assumed 50% increase in transaction volumes and growth in revenue from professional services. Strong operational and financial performance of the group in 2015 is encouraging and provides confidence that it will deliver further improvements in margins and transaction volumes in 2016.|
Mi-Pay (LON:MPAY): Trading update
Market Cap: £11.4m; Current Price: 27p
H1 in line – top line growth, reduced cost base
• H1 trading in line with management expectation with revenue of £1.5m (+10%). Underlying revenue growth, stripping out the major client that was lost in late 2013) was 35%. Continued growth in underlying transaction value and volumes while payment success rates remain high and fraud levels low.
• £0.7m reduction in the operating cost base following the reduction in headcount in 2014. £3.8m in cash at H1, following March’s £1.75m placing.
• On track to achieve target of positive cash flow in 2016.
NORTHLAND CAPITAL PARTNERS VIEW: Encouraging trading update from the provider of payment services to Mobile Network Operators (MNOs) and Mobile Virtual Network Operators (MVNOs). The loss of the major customer in 2013 was a setback after its decision to insource its payments service and continue to skew the financial metrics but there was good growth on an underlying basis. There is an ongoing shift towards digital services for mobile top up and other content services and Mi-Pay is able to offer connections to a wider range of payment providers, secure higher transaction success rates but also indemnify its clients against fraud. Asia offers considerable growth and Mi-Pay has secured a number of clients although transaction volumes are currently low.|
|I have now written up a few notes on the Mi-Pay AGM and posted them on the Motley Fool VCT blog where the Albion VCTs have a reasonable following:
Feel free to copy, quote or plagiarise should you wish to.|
|Thanks Timbo. I have quite a few shares so shall read your comments with great interest.
|It's the AGM on Tuesday.
11.00 start at 30 Crown Place EC2A 4ES
I intend to go along and will feedback in due course.|
|Great. Thanks for that.|
|The others I have looked at all seem okay (Horizon, Assesso and Venture life)|
|Thanks for letting me know timbo003. We have been having problems with the company that hosts our videos (JW Player - never use them they are awful!). As a result we are launching a new site this week and using vimeo so hopefully this will eradicate any problems you might be experiencing. Just out of interest, does this happen with any of the other videos?|
Thanks, that's a neat web site and a good idea, good name too, very apt.
I too have a few problems with the sound, it's a bit intermittent and tends to fade at certain points, the visuals are unaffected.
I'm using IE 11 with Windows 7 62 bit.|
|Great. Thank you!|
|I used Firefox but don't worry, it seemed to work fine this time...|
|SteMiS Thanks for letting me know. Could you tell me at which times? I will see what is going on. Also, what internet browser are you watching it on. (eg. internaent explorer, google chrome, safari etc.)|
|Is it just me or does everyone seem to lose sound at various points in this TV interview?|
|Many thanks oshy.|
|Results on 29th April. Hard to know what to expect as there appears to be no forecasts in the market.|
|Oh, nice to see that Autoclenz (which we sold for next to nowt) is still banging out the cash...........|
|My comment of 17 Sept is looking slightly prescient....
A 25% dilution at 23p when the original acquisition price was 41p isn't exactly what I was hoping for. I suppose I could maintain my concentration (is that what you do to avoid dilution, lol?) but as I've only 25,000 shares I'm not sure I can be bothered.
Lots of bullish talk in the trading statement however H2 turnover is almost exactly the same as H1. At least they've pinned their expectations to the mast with the comment that the company should be cashflow neutral by end of 2015. That means another year of losses in 2015 though and maybe breakeven for 2016. At the moment the jam seems a long way from the bread.....|
|These have been on my radar for some time as I have had an indirect interest through my shareholding in one of the Albion VCTs (Crown Place VCT)
I was given the opportunity to participate in the placing at the beginning of last week (when the underlying share price was around 34p) and jumped at the chance given the discount and that the placing shares qualify for highly generous EIS tax breaks. For anyone who is unfamiliar with EIS, this means investors (who are UK tax payers) are only effectively paying 16.1p/share for the placing shares and they also have downside protection if it all goes belly up. Any gains will be free of CGT if it turns out to be a multi-bagger (plus a few other benefits)
Summary of EIS tax breaks
The only real draw back with EIS qualifying shares is that you have to hold the shares for 3 years if you wish to retain the tax reliefs, which is not a problem as far as I am concerned.|
|The share price is clearly disappointing but the more I read the Trading Statement and compare the perfomance of the full year with that of the first half year to see how things grew in the second half then the better things look when combined with the improved gross margins and £1m per year cost savings.
Announcing that the Philippines contract is with Sun is new news and they are worth googling for their recently announced growth plans. The contract started 3-6 months later than expected though which may well be to blame for this Placing.
The China Telecom news is good as is the expectation that all the current Euro M&A will actually benefit us rather than the opposite. I notice that they are also behind the recently relaunched Tesco International Calling app which appears to be gaining traction and is worth googling.
It doesn't help me as I already own enough shares but if I didn't I would certainly be having a punt on these at these levels. The infrastructure and contracts have to be worth a fair bit more than the current price to one of the major payments companies, and the Chairman has excellent M&A credentials.
Any thoughts appreciated. Clearly I'm talking my book so would be interested to hear other views.|
|My opinions as a holder at 30p average.
- The contracts are there in front of you.
- The Chairman is an excellent appointment with a very good track record and has driven the efficiency savings.
- The opportunity is massive
- Other companies in this space are usually valued much higher.
- Existing shareholders have been supportive. I gather Octopus were willing to stand in if necessary.
But, it is only projected to breakeven on a cash basis at the year end. I understand we can expect a note from Zeus in a couple of weeks with some forecasts out to 2017.
The Placing size is okay in only being 7.6m shares but it is disappointing on price. I gather that most subscribers were happy at a higher price but the largest subscriber was keen to get a discount.
I'm a holder from ACZ days and trust Mr Leek's judgement but it's a lot more "exciting" than I'd intended when I first got involved.
What do you think ?
|Very interesting cash raising here...any opinions?|
|Here's some information on the Post Office's new mobile offering ...
As for Sainsbury's, this is an interesting article from earlier this month ...