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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Mi-pay Group Plc | LSE:MPAY | London | Ordinary Share | GB00B0N59376 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 1.20 | 1.00 | 1.40 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMMPAY
RNS Number : 7709R
Mi-Pay Group PLC
26 September 2017
26 September 2017
The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain
Mi-Pay Group plc
('Mi-Pay', the 'Group', or the 'Company')
Interim Results
Mi-Pay (AIM: MPAY), a leading provider of digital transformation and mobile payment solutions to Tier 1 Mobile Network Operators and Mobile Virtual Network Operators, is pleased to present its unaudited Interim Results for the six months ended 30 June 2017.
Operational Highlights
Hot Features
Premium
-- During the period, Mi-Pay re-contracted
with its largest client for an incremental
three years. This is expected to secure
existing revenues and drive material growth
in payment transaction value processed
from the EUR25 million processed in 2016
to a run rate of over EUR100 million per
annum during 2018 as our Client integrates
a recently acquired customer base.
-- New contract win in the Philippines to
develop and deliver a new international
payment service by early 2018.
-- Implemented a trial with a new European
Client to deliver our first fraud as a
service solution.
-- Continued to deliver operational excellence
with high payment success rates and low
fraud levels.
-- Successfully delivered annual PCI DSS level
1 accreditation for 2017/2018.
Financial Highlights
-- The total value of transactions processed
in the period increased by 16% to GBP45.4
million versus H1 2016.
-- Total revenue recognised in the period
GBP1.5 million (H1 2016: GBP1.6 million)
as Mi-Pay increased its focus on long-term
annuity based Transaction Services revenue
growth, which grew by 12% to GBP1.4 million.
(H1 2016: GBP1.2 million). Reduced non-recurring
Professional Services revenues offset this
during the period.
-- Mi-Pay delivered improved Transaction Services
gross margin of 63% (H1 2016: 55%) as a
result of increased volumes, improved commercial
terms with our suppliers and strong operational
performance. Total Gross profit remained
flat at GBP1.0 million versus the same
period in 2016.
-- Further investment in our infrastructure
security and data encryption increased
total administrative expenses to GBP1.3
million (H1 2016: GBP1.2 million).
-- Adjusted Operating Loss of GBP0.2 million
for the period after excluding unpaid deferred
salaries, depreciation and exceptional
costs related to merger and acquisition
reviews.
-- Cash & cash equivalents as at 30 June 2017
increased to GBP3.7 million (H1 2016: GBP3.4
million) as our growth in Payment Transactional
Value Processed increased the levels of
client funds held.
-- Net cash out flows from operating activities
for the period, excluding movements in
amounts due to clients, cash flow from
financing and investing activities and
one off exceptional expenditure was GBP0.2
million. (H1 2016: net cash outflow GBP0.1
million).
-- Cash outflow for the period was offset
by receipt of GBP0.3 million in July 2017
for annual research and development tax
credits.
-- Basic and diluted loss per share 0.8 pence
(H1 2016: 0.6 pence loss per share).
Seamus Keating, Chairman of Mi-Pay Group plc commented:
"The Board continues to see good progress at all levels in the Group with increased transaction revenues and margin improvements supported by continued control of operating costs. This has enabled us to maintain cash balances above target and continue our focus on achieving profitability and stronger growth opportunities.
In the period, we secured and extended our existing seven-year relationship with our largest client for a further three years, which we expect to drive material revenue growth and profit over the life of the contract.
This investment, as announced previously, has reduced our non-recurring Professional Services revenues and the commercial terms within the new contract, will affect short-term Transaction Services revenues and margins as we integrate the new services and grow the transaction volumes. Thereafter we expect this to deliver long-term revenue and margin growth.
We are proving that our digital payment solutions and commercial flexibility is increasingly relevant in our market and we are becoming more important to our clients."
For further information, please contact:
Mi-Pay Group IFC Advisory Zeus Capital plc Tel: +44 20 3053 Tel: +44 161 Tel: +44 207 8671 831 1512 112 2129 Graham Herring Nick Cowles Seamus Keating, Tim Metcalfe Jamie Peel Chairman Heather Armstrong John Beale, CFO
Founded in 2003, Mi-Pay Group delivers fully outsourced online and related digital payment solutions to ecommerce clients, primarily in the mobile sector. Its product offering provides the infrastructure to enable pre-paid mobile devices to be topped up via a variety of channels such as websites, mobile applications and social media applications and customers include Mobile Network Operators (MNOs) and Mobile Virtual Network Operators (MNVOs). Mi-Pay sells, integrates and operates its products and solutions on a global basis. For further information, please visit www.Mi-Pay.com or contact details as shown above.
Chief Executive Officer's review
H1 2017 Overview
Having delivered continued growth, improved margins and a reduced cost base consistently over previous periods we are now focussing on driving long-term growth in our annuity based revenue solutions.
We continue drive the natural migration of consumers to the direct, on-line digital sales channel from that of the traditional retail store 'paper' voucher model and our clients increasingly recognise this channel as a strategic requirement for growth, customer retention and real-time communication. Our clients' digital transformation strategies, alongside financial risk aversion and an ever increasing cybersecurity risk increases the attractiveness of Mi-Pay as a partner to help drive this transition with our flexible, simple and secure outsourced solutions. We believe that our proven solutions put us in a strong position to take advantage of this continuing migration trend.
Strategy
"Mi-Pay's solutions connect people and businesses digitally, transforming customer payment journeys and purchase behavior from the traditional paper retail environment to instant, digital delivery".
We make it simple for our clients to integrate and operate multiple digital payment options for their customers quickly and securely across the globe. Mi-Pay offers a fully outsourced, secure payment services platform for instant top up, digital content and bill payment services with our solutions targeted to improve the customer buying experience, choice, flexibility and security primarily for pre-paid customers. Our solutions:-
- increase client revenues;
- reduce customer churn;
- protect against fraud;
- secure customer data; and
- future proof their digital strategies.
Within our market customers continue to move away from traditional 'in store' purchases towards the use of devices (mobile phones and tablets) which is driving exponential growth in mobile-commerce and digital content services. This drives our natural growth levels with the additional value of ever-increasing mobile usage of data more than compensating for the reduction in voice usage, which in turns increases our revenue per transaction. This creates a clear focus for us in which to invest as we facilitate and drive this trend.
Operator needs and consolidation - business intelligence, risk management and customer retention
The European market is increasingly competitive and in recent years we have seen a number of major integrations between global operators as they have addressed the need to manage falling margins at the same time of needing to deliver a wider range of digital content to customers including data/voice/content/TV/music etc. A multi-'Omni'-channel digital payment solution supporting this need, to reach customers is now crucial to their success as they look to improve customer retention, require an ability to quickly add new content and increasingly deliver on-demand data services. The digital channels bring certain benefits, namely the ability to market directly to customers, and offer multiple ways to connect and order services instantly at lower cost. Our solutions deliver the full Omni-channel experience and enable direct marketing, retention programmes and access to business intelligence. Our experience in processing over GBP1.1 billion in payment transaction value makes us a leading expert in the pre-paid services market. Our ability to indemnify and de-risk both the customer and the operator creates value in our proposition; crucially we offer the flexibility and technology to enable our clients who do consolidate and integrate their platforms to effectively manage this transition, minimize the risk on the consumer and materially reduce their cost base.
Digital Content & Payments solutions
Management of flexible data bundles, content packages and on-line streaming solutions within the pre-pay environment will drive the growth of the consumer, primarily from their device and over time, direct voice activated services solutions within the home. This needs to be integrated with the new influx of 'payment wallet' solutions and alternative payment methods such as PayPal, Amazon Payments, Apple Pay and Android Pay as customers look for secure, 'one-click' payment solutions flexible on all devices. Our investments in this space are key to our future success providing simple, integrated order and payment journeys, which support the payment method of choice for the customer - whilst removing the risk to the Mobile Operator.
Geographies
Whilst the European market is mature in terms of mobile ownership our opportunity lies in the customer migration to the on-line/on-device solutions. In addition, we continue to target long-term growth in the Asian market. Although traction remains slower than we had originally anticipated, with over 80% of mobile users in Asia Pacific being pre-paid customers versus 50% in Europe, the region is now larger than Europe in terms of mobile ownership at over 1.8bn users. Our proven ability to deliver risk free solutions puts us in a strong position to be a first mover in this market
Security & payment fraud
We have continued to see high profile personal data breaches in the digital commerce market which forced mobile operators and retailers to re-evaluate the importance of the protection of their customers' data; an increasingly complicated and expensive exercise. Global cybercrime cost the industry over $1 billion in 2015 and global digital payment fraud exceeded $19 billion. The increasing compliance requirements become more challenging - increasing PCI accreditation requirements together with the European General Data Protection Regulation (GDPR), enforceable from 2018. Our core offering offers a fully segregated infrastructure, which is compliant with all the global requirements and delivers in-house payment fraud management. As such, we believe our solution is valuable to operators and we believe this change in market dynamics will be beneficial for outsourced solutions like ours in the longer term and see real opportunities to offer these services as part of our core-outsourced offering but also as individual solutions.
Operational Review
Trading
We continue to focus on driving new transactions delivering a 16% increase in total transaction value processed to GBP45.4 million versus GBP39.1 million for the same period in 2016, continuing our prior year trends of delivering consistent growth.
Our total revenue reduced to GBP1.5 million (H1 2016: GBP1.6 million) as we targeted annuity based Transaction Services revenues which we expect will drive longer term revenue and profit growth for the group over that of our one-time Professional Services revenues. This focus is seen in our results as we continued to grow our Transaction Services Revenues in the period (12% since H1 2016) being offset by a reduction in our Professional Services revenues to GBP0.2 million for the period (H1 2016: GBP0.4 million). This investment in driving more strategic relationships with our clients has now delivered a 3-year extension with our existing largest client in a competitive bid environment. The new contract will continue our existing volumes processed but over time add material incremental growth as we connect to their new infrastructure over the coming 12 months and integrate their recently acquired new customer base. This integration will be a core focus and investment for us over the coming 12 months. Over the life of the contract, we expect this relationship to contribute to an overall doubling in total group transaction value processed, compared to the value processed in 2016. New commercial terms with the Client and our operational focus on delivery of these solutions will reduce revenue and margin in the short term; however, we expect this relationship to de-risk our long-term outlook and deliver long-term revenue and margin growth.
Across our wider client base, we see increased customer adoption of our digital solutions, with our customers choosing their devices to transact using Mobile Apps and Device Optimised Web pages over traditional Interactive Voice Recognition services and retail, in store based solutions. In addition, we see a continued increase in a preference for using mobile wallet payment devices such as PayPal and Amazon Payments and an increasing requirement for voice activated services and real time in-store digital solutions. These will remain core areas for investment over the coming period to ensure we remain market leading in delivering the most relevant digital payment solutions.
We have continued to invest in our in-house payment fraud management solution, also creating a new standalone Fraud as a Service product. We have again delivered year on year improvements in our performance, reducing our total fraud as a percentage of transaction value processed from 0.11% in H1 2016 to 0.04% in H1 2017. In addition, our investment has enabled us to reduce the volume of 'good' transactions that we reject in this process, delivering an increase in our overall transaction success rates from 87% to 89% since H1 2016. These elements combined to drive increased margin but more importantly increased customer satisfaction. As part of this investment, we have built the capability to deliver our internal fraud solution as a direct service to clients. We are pleased that in H2 2017 we expect to deliver our first trial with a European client to test this service which may drive longer term new revenue streams for the group.
Whilst our opportunities in Asia, and specifically the Philippines remains slow in growing, we have made progress during the period by delivering new contractual terms with our Client in the region for a multi-country payment solution. We expect to deliver this by early 2018. Revenue growth from this relationship remains uncertain however, we expect this will drive stronger longer-term relation;ships and incremental growth opportunities.
Security, stability and digital experience remains at our heart and the increasing risks that have been seen in the 'cyber community' in the last 24 months enhances our solutions value to our clients and their customers. We have continued to see strong infrastructure and employee stability over the period and we continue to invest in our data security, again achieving our PCI DSS (3.2) level 1 accreditation for 2017/ 2018. In addition, we have enhanced our overall data security proposition with wider data encryption, not simply payment data, across our whole infrastructure and enhanced DDOS protection to ensure all of our client's personal data is better protected, but also to future proof and protect our clients to the highest level.
Financial Review
Unaudited Unaudited Audited
Six months Six months Year
ended 30 ended ended
June 2017 30 June 31 Dec
GBP 2016 2016
GBP GBP
Payment Transaction Value
Processed 45,385,844 39,051,426 83,404,805
Transaction Services Revenue 1,358,755 1,207,816 2,565,629
Professional Services Revenue 174,182 378,122 713,037
Revenue 1,532,937 1,585,938 3,278,666
------------------------------- ------------ ------------ ------------
Transaction Services Gross
profit 853,388 664,950 1,529,583
Professional Services Gross
profit 117,875 317,563 576,414
Gross profit 971,263 982,513 2,105,997
Gross profit % 63% 62% 64%
------------------------------- ------------ ------------ ------------
Administrative Expenses
/ Research and development (1,139,171) (1,042,506) (2,149,019)
Adjusted Operating profit
/ (loss) (167,908) (59,993) (43,022)
------------------------------- ------------ ------------ ------------
Deferred salaries (unpaid) (45,248) (76,502) (145,504)
Depreciation (60,182) (67,072) (132,564)
Exceptional items (71,717) (50,902) (121,581)
Operating loss (345,055) (254,469) (442,671)
-------------------------------
Cash and cash equivalents
at beginning of period 3,518,217 3,530,154 3,530,154
Cash inflow from management
of client payments 495,129 152,950 297,473
Adjusted Net cash flow from
operating activities(1) (228,329) (131,679) (70,589)
Exceptional items (71,717) (50,902) (121,581)
Capital Expenditure (21,093) (27,113) (51,240)
Cash flow from financing (32,915) (33,000) (66,000)
Cash and cash equivalents
at end of period 3,659,292 3,440,410 3,518,217
Basic and diluted loss per
ordinary share (0.8)p (0.6)p (1.1)p
------------------------------- ------------ ------------ ------------
(1)Adjusted Net cash flow from operating activities excludes cash flows from the management of client payments and exceptional items
Our growth in Payment Transaction Value Processed, improved performance in fraud management and payment optimisation, together with improving terms with our partners as our volume grows, drove an increase in our Transaction Services Gross profits by GBP0.2 million adding a further 8% of Transaction Services Gross margin to 63% in the period (H1 2016: 55%). This was offset by the reduction in one-time Professional Services revenues and subsequent Gross profit reduction, overall maintaining our Gross profit at GBP1.0 million for the period. However, we believe this approach will deliver longer-term benefits to the group as our volumes grow, driven primarily by our new contract.
We continued to manage our administrative expenses, seeing a small increase since H1 2016 as we invested further in our data security solution. This led to an increase in adjusted operating loss for the period to GBP0.2 million (H1 2016: GBP0.1 million) which was subsequently offset with our GBP0.3 million research and development recovery in July 2017.
In our balance sheet, as our Payment Transaction Value Processed increased we saw a GBP0.5 million increase across trade receivables and cash since December 31 2016 related to amounts due to our clients offset by an equal increase in Client payables. Outside of our client related transactions, there are no material movements to report in our balance sheet and our working capital requirements remain minimal due to our business model of collecting payments at source. Cumulative amounts due to Directors for deferred salaries unpaid closed the period at GBP0.3 million and we closed the period expecting to recover GBP0.4 million in cash for research and development tax credits due for the 18-month period to June 2017, GBP0.3 million of which was fully paid in July 2017.
The Group ended the period with GBP3.7 million in cash and cash equivalents (GBP3.5 million at 31 December 2016), noting that of this balance, GBP2.9 million related to the operation of managing client payments (GBP2.4 million as at 31 December 2016). Excluding the client related cash movements our cash outflow was GBP0.4 million in the period, which included GBP0.1 million outflow related to capital expenditure and infrastructure lease payments and GBP0.1 million expenditure on reviewing potential merger and acquisition opportunities. Our core trading therefore showed an outflow of GBP0.2 million for the period, against which we subsequently received a cash inflow of GBP0.3 million for research and development tax credits relating to the 12-month period to 31 December 2016, in July 2017.
Employees
We recognise that the performance achieved in this period would not have been possible without the support and continued dedication of our staff. They continue to support our delivery model and enhance our solutions to our clients, support the strong transaction growth and develop and deliver improved, secure technologies. They are our most valuable resource and we would like to thank them for their efforts and stability they give to the group. We encourage a strong, innovative culture encourage communication and as a result maintain a very high retention of employees.
Outlook
Mi-Pay has made significant progress in the period by delivering material new long-term annuity based sales opportunities with existing clients, a new contract in Asia Pacific and a new fraud solution trial. When combined with the continued natural migration of consumers to our digital channels and the strong gross margins we are delivering, we expect these will underpin our progress to profitability, cash generation and significantly de-risk our long-term outlook. The delivery of these new opportunities is our focus for the coming period.
We will continue to invest in our fraud management capabilities, data security solutions and enhancing our global infrastructure - specific focus in H2 2017 on implementing the best data protection and GDPR standards. In addition we will continue to develop of our mobile device and digital payment solutions that underpin the continued growth of our client solutions.
For the full year, we expect transaction value processed to be in the region of GBP95 million (2016: GBP83.4 million) but expect stronger growth to in 2018 through our existing contractual arrangements. Together with our current visibility of professional services projects, we expect total revenue for 2017 in the range of GBP3.1-3.4 million with gross profits expected to be in line with those experienced in H1 2017. Our research and development cash credit received in July 2017 more than offset the adjusted operating loss for the period giving the group the stability to continue to invest and grow.
The Board remains confident that our total market opportunity continues to increase as the digital payments market expands globally and our solutions become increasingly relevant to a wider set of customers, geographies and vertical markets. Our growing relationship with all of our clients and broader solutions keeps us in a strong position to take advantage of this consumer trend. The key market of Asia and other content and pre-pay markets outside of Mobile operators, together with a wider set of security and fraud management solutions remain opportunities to invest in, and ones that we will look to deliver further growth for us over the longer term.
Michael Dickerson Seamus Keating CEO Chairman
Consolidated Statement of Comprehensive Income
For the period of six months ended 30 June 2017
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec
2017 2016 2016
Note GBP GBP GBP
------------------------------ ----- --------------------------- ------------ ------------
Payment Transaction
Value Processed 45,385,844 39,051,426 83,404,805
Transaction Services
Revenue 1,358,755 1,207,816 2,565,629
Professional Services
Revenue 174,182 378,122 713,037
------------------------------ ----- --------------------------- ------------ ------------
Revenue 1,532,937 1,585,938 3,278,666
------------------------------ ----- --------------------------- ------------ ------------
Cost of sales (561,674) (603,425) (1,172,669)
------------------------------ ----- --------------------------- ------------ ------------
Gross profit 2 971,263 982,513 2,105,997
Administrative expenses
------------------------------ ----- --------------------------- ------------ ------------
General and administration (1,027,914) (1,014,919) (1,699,551)
Research and development (156,505) (104,089) (594,972)
Depreciation (60,182) (67,072) (132,564)
Exceptional items 3 (71,717) (50,902) (121,581)
------------------------------ ----- --------------------------- ------------ ------------
Total administrative
expenses (1,316,318) (1,236,982) (2,548,668)
Operating loss (345,055) (254,469) (442,671)
Finance income 70 1,791 3,492
Finance expense (17) (30) (67)
------------------------------ ----- --------------------------- ------------ ------------
Loss before taxation (345,002) (252,708) (439,246)
Taxation - - -
------------------------------ ----- --------------------------- ------------ ------------
Loss for the period/year (345,002) (252,708) (439,246)
------------------------------ ----- --------------------------- ------------ ------------
Other Comprehensive
expense for the year
Exchange differences
on translation of foreign
operations 4,405 (645) 88
Loss and total comprehensive
expense for period
attributable to the
owners of the parent (340,597) (253,353) (439,158)
------------------------------ ----- --------------------------- ------------ ------------
Basic and diluted loss
per ordinary share 4 (0.8)p (0.6)p (1.1)p
------------------------------ ----- --------------------------- ------------ ------------
The notes on pages 10 to 12 form part of these financial statements.
Consolidated Statement of Financial Position
As at 30 June 2017
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec
2017 2016 2016
Note GBP GBP GBP
------------------------------- ----- ------------- ------------- -------------
ASSETS
Non-current assets
Property, plant and
equipment 137,646 218,101 176,735
Total non-current assets 137,646 218,101 176,735
Current assets
Trade and other receivables 5 943,216 772,411 897,190
R&D tax credit receivable 357,363 374,375 220,000
Cash and cash equivalents 3,659,292 3,440,410 3,518,217
Total current assets 4,959,871 4,587,196 4,635,407
Total assets 5,097,517 4,805,297 4,812,142
------------------------------- ----- ------------- ------------- -------------
LIABILITIES
Current liabilities
Trade and other payables 6 (4,733,808) (3,849,186) (4,074,921)
Obligations under finance
lease (66,000) (66,000) (66,000)
------------------------------- ----- ------------- ------------- -------------
Total current liabilities (4,799,808) (3,915,186) (4,140,921)
Non-current liabilities
Obligations under finance
lease - (66,000) (32,915)
------------------------------- ----- ------------- ------------- -------------
Total non-current liabilities - (66,000) (32,915)
Total liabilities (4,799,808) (3,981,186) (4,173,836)
------------------------------- ----- ------------- ------------- -------------
Net assets 297,709 824,111 (638,306)
------------------------------- ----- ------------- ------------- -------------
Equity
Share capital 4,159,324 4,159,324 4,159,324
Share premium 1,403,923 1,403,923 1,403,923
Share options reserve 624,729 624,729 624,729
Reverse acquisition
reserve 6,920,115 6,920,115 6,920,115
Merger reserve 6,808,742 6,808,742 6,808,742
Retained deficit (19,619,124) (19,092,722) (19,278,527)
------------------------------- ----- ------------- ------------- -------------
Total equity attributable
to the equity shareholders
of the parent 297,709 824,111 638,306
The notes on pages 10 to 12 form part of these financial statements.
Michael Clay Dickerson
Chief executive officer
Consolidated Statement of Cash Flows
For the period of six months ended 30 June 2017
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec
2017 2016 2016
Note GBP GBP GBP
--------------------------------- ------ ------------ ------------ ----------
Cash flows from operating
activities
Loss before tax from
continuing operations (345,002) (252,708) (439,246)
----------------------------------------- ------------ ------------ ----------
Adjusted for:
Depreciation 60,182 67,072 132,564
Finance income (70) (1,791) (3,492)
Finance expense 17 30 67
R&D credits (137,363) (170,808) (308,710)
(Increase) / decrease
in trade and other receivables (41,621) (48,632) (172,855)
Increase / (decrease)
in trade and other payables 658,887 375,445 601,180
Adjusted profit/(loss)
from operations after
changes in working capital 195,030 (31,392) (190,492)
Interest received 70 1,791 3,492
Interest paid (17) (30) (67)
Corporation tax (paid)/received
(inc R&D credits) - - 292,370
Net cash flows from
operating activities 195,083 (29,631) 105,303
Cash flows from investing
activities
Purchase of property,
plant and equipment (21,093) (27,113) (51,240)
Net cash flows from
investing activities (21,093) (27,113) (51,240)
Cash flows from financing
activities
Proceeds from issue - - -
of share capital, net
of issue costs
Finance lease payments (32,915) (33,000) (66,000)
Net cash flows from
financing activities (32,915) (33,000) (66,000)
Net increase / (decrease)
in cash and cash equivalents 141,075 (89,744) (11,937)
Cash and cash equivalents
at beginning of period 3,518,217 3,530,154 3,530,154
----------------------------------------- ------------ ------------ ----------
Cash and cash equivalents
at end of period 3,659,292 3,440,410 3,518,217
----------------------------------------- ------------ ------------ ----------
Consolidated Statement of Changes in Equity
For the period of six months ended 30 June 2017
Share Reverse
For the period ended 30 Share Share options acquisition Merger Retained
June 2017 capital premium reserve reserve reserve deficit Total
GBP GBP GBP GBP GBP GBP GBP
----------------------------- ---------- ---------- --------- ------------- ---------- ------------- ----------
At 1 January 2017 4,159,324 1,403,923 624,729 6,920,115 6,808,742 (19,278,527) 638,306
Loss for the period from
continuing operations - - - - - (345,002) (345,002)
----------------------------- ---------- ---------- --------- ------------- ---------- ------------- ----------
Other comprehensive expense
for the period - - - - - 4,405 4,405
At 30 June 2017 4,159,324 1,403,923 624,729 6,920,115 6,808,742 (19,619,124) 297,709
============================= ========== ========== ========= ============= ========== ============= ==========
Consolidated Statement of Changes in Equity
For the period of six months ended 30 June 2016
Share Reverse
For the period ended 30 Share Share options acquisition Merger Retained
June 2016 capital premium reserve reserve reserve deficit Total
GBP GBP GBP GBP GBP GBP GBP
----------------------------- ---------- ---------- --------- ------------- ---------- ------------- ----------
At 1 January 2016 4,159,324 1,403,923 624,729 6,920,115 6,808,742 (18,839,369) 1,077,464
Loss for the period from
continuing operations - - - - - (252,708) (252,708)
----------------------------- ---------- ---------- --------- ------------- ---------- ------------- ----------
Other comprehensive expense
for the period - - - - - (645) (645)
At 30 June 2016 4,159,324 1,403,923 624,729 6,920,115 6,808,742 (19,092,722) 824,111
============================= ========== ========== ========= ============= ========== ============= ==========
Consolidated Statement of Changes in Equity
For the year ended 31 December 2016
Share Reverse
For the year ended 31 Share Share options acquisition Merger Retained
December 2016 capital premium reserve reserve reserve deficit Total
GBP GBP GBP GBP GBP GBP GBP
----------------------------- ---------- ---------- --------- ------------- ---------- ------------- ----------
At 1 January 2016 4,159,324 1,403,923 624,729 6,920,115 6,808,742 (18,839,369) 1,077,464
Loss for the year from
continuing operations - - - - (439,246) (439,246)
----------------------------- ---------- ---------- --------- ------------- ---------- ------------- ----------
Other comprehensive expense
for the period - - - - - 88 88
At 31 December 2016 4,159,324 1,403,923 624,729 6,920,115 6,808,742 (19,278,527) 638,306
============================= ========== ========== ========= ============= ========== ============= ==========
Notes to the Financial Information
1 Basis of preparation
The unaudited consolidated half-yearly financial information in this report has been prepared on the basis of the accounting policies expected to apply for the financial year to 31 December 2017 and in accordance with recognition and measurement principles of International Financial Reporting Standards (IFRSs) as endorsed by the European Union. The accounting policies applied in the preparation of this half-yearly financial information are consistent with those used in the financial statements for the year ended 31 December 2016. This interim report has not been reviewed by the Group's auditors, and does not constitute statutory accounts within the meaning of the Companies Act 2006. The financial information for the six months ended 30 June 2017 and 30 June 2016 is not audited.
The financial information contained in this document does not include all of the information required for full annual financial statements and do not comply with all of the disclosures in IAS34 'Interim Financial Reporting'. Accordingly whilst this financial information has been prepared in accordance with IFRS they cannot be construed as being in full compliance with IFRS.
The financial information for the year ended 31 December 2016 does not constitute the full statutory accounts for that period. The Annual Report and Accounts for 31 December 2016 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Accounts for 2016 was unqualified and did not include references to any matters which the auditors drew attention to by way of emphasis without qualifying their report and did not contain statements under Section 498(2) or 498(3) of the Companies Act 2006.
2 Segmental analysis
The chief operating decision maker has been identified as the Chief Executive Officer (CEO) of the group. The chief operating decision maker is responsible for regularly assessing the performance of the group's operating segments and performing the function of allocating resources. To assist the chief operating decision maker in this process, internally generated reporting is prepared for each operating segment.
The group has two operating segments that it reports on. These operating segments are:
-- Transaction Services Revenues: This segment generates revenue from the processing of transactions on behalf of clients and is Mi-Pay Group plc's core business.
-- Professional Services Revenues: This segment generates revenue from the development, delivery and hosting of our platform and client solutions.
The CEO assesses the performance of the operating segments based on revenue and gross profit. The CEO uses these measures to assess performance because they are quick to analyse and directly relevant to evaluating the results of each segment. (1)
Both segments are continuing operations and results are as follows:
Operating Segments
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec
2017 2016 2016
GBP GBP GBP
Payment Transaction Value
Processed 45,385,844 39,051,426 83,404,805
Transaction Services
Revenue 1,358,755 1,207,816 2,565,629
Professional Services
Revenue 174,182 378,122 713,037
------------ ------------ -----------
Total revenue 1,532,937 1,585,938 3,278,666
Transaction services
cost of sales 505,367 542,866 1,036,046
Professional services
cost of sales 56,307 60,559 136,623
------------ ------------ -----------
Total cost of sales 561,674 603,425 1,172,669
Transaction services
gross profit 853,388 664,950 1,529,583
Professional services
gross profit 117,875 317,563 576,414
------------ ------------ -----------
Total gross profit 971,263 982,513 2,105,997
============ ============ ===========
Transaction services
gross profit 63% 55% 60%
Professional services
gross profit 68% 84% 81%
------------ ------------ -----------
Total gross profit 63% 62% 64%
============ ============ ===========
(1) There is no inter segment trading and assets and liabilities are not allocated to segments.
3 Exceptional items
The exceptional item recognised in the six-month period to 30 June 2017 reflects costs that, in the opinion of the board of directors, are non-recurring as they relate to professional fees incurred on continued review of merger and acquisition opportunities.
4 Loss per share
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec
2017 2016 2016
GBP GBP GBP
----------------------- ------------ ------------ -----------
Loss for the year (345,002) (252,708) (439,246)
Weight-average shares
outstanding (number) 41,593,229 41,593,229 41,593,229
----------------------- ------------ ------------ -----------
Basic EPS (0.8)p (0.6)p (1.1)
Diluted EPS (0.8)p (0.6)p (1.1)
======================= ============ ============ ===========
The numerators shown above represent the total loss from continuing operations for the period or year.
Since the Group was in a loss making position for all three periods presented, there was no difference between the weighted average number of shares used to calculate basic and diluted net loss per share.
5 Trade and other receivables
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec
2017 2016 2016
GBP GBP GBP
Trade receivables 81,657 132,226 88,786
Less: provision for impairment
of trade receivables - - (8,670)
------------ ------------ --------
Trade receivables - net 81,657 132,226 80,116
Client receivables 699,295 490,243 642,922
Prepayments 114,534 117,877 74,194
Other receivables 47,730 32,065 99,958
------------ ------------ --------
Total trade and other
receivables 943,216 772,411 897,190
============ ============ ========
6 Trade and other payables
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec
2017 2016 2016
GBP GBP GBP
Trade payables 291,107 256,214 186,343
Client payables 3,639,129 2,822,383 3,095,022
Accruals 347,187 393,661 367,167
Deferred income 20,138 62,038 15,408
Other payables - tax
and social security payments 40,239 44,565 57,885
Deferred directors' emoluments 327,001 213,504 281,259
Other Payables 69,007 56,821 71,837
------------ ------------ ----------
Total trade and other
payables 4,733,808 3,849,186 4,074,921
============ ============ ==========
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UVRARBKAKUUR
(END) Dow Jones Newswires
September 26, 2017 02:01 ET (06:01 GMT)
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