We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for streaming realtime charts, analysis tools, and prices.
| 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 : 5965B
Mi-Pay Group PLC
05 April 2017
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement via Regulatory Information Service, this inside information is now considered to be in the public domain.
5 April 2017
Mi-Pay Group plc
('Mi-Pay', the 'Group', or the 'Company')
Final Results
Mi-Pay Group plc (AIM: MPAY), the leading provider of mobile payment solutions to Tier 1 Mobile Network Operators and Mobile Virtual Network Operators, presents its final results for the 12 months ended 31 December 2016.
Financial Highlights
Hot Features
Premium
-- GBP83.4 million of payment transaction value
processed in 2016 from 6.2 million processed
transactions (2015: GBP64.7 million and 5.2
million respectively).
o Total Revenue GBP3.3 million for the year
(2015: GBP3.0 million).
o Transaction Services Revenue GBP2.6 million
(2015: GBP2.3 million).
o Professional Services Revenue GBP0.7 million
(2015: GBP0.7 million).
-- Gross Profits increased by 25% to GBP2.1 million
as revenues increased together with an 8%
year-on-year increase in efficiencies to deliver
a gross profit margin of 64% for the year
(2015: GBP1.7 million/56%).
-- Significantly reduced delivery cost base from
2015, reducing administrative expenses by
GBP0.6 million to GBP2.5 million (2015: GBP3.1
million).
-- Operating loss of GBP0.4 million (2015: GBP1.4
million).
-- Cash and cash equivalents as at 31 December
2016 GBP3.5 million (31 December 2015: GBP3.5
million).
-- Basic diluted loss per share 1.1 pence (2015:
3.6 pence).
Operational Highlights
-- Growth driven from continued migration of
consumers to digital payment channels of our
existing clients as 80% of our top 10 clients
increased their payment transaction value
processed.
-- First delivery of Amazon Payments to the Mobile
Operator community building on our mobile
device expertise.
-- IBM global Beacon award for 'Outstanding Solution
Hosted on IBM Cloud'.
-- Developed our in-house cyber security, fraud
and content management solutions driving the
growth in margins.
Seamus Keating, Chairman of Mi-Pay Group plc commented on the results:
"Mi-Pay has continued to make steady progress throughout 2016 as our market leading proposition becomes ever more relevant to Mobile Network Operators. We are pleased to see increased rates of migration to digital channels and we have continued to develop our growing suite of solutions.
The foundations we laid in 2015 to improve our operational efficiencies have continued and we are pleased to see our profit margin improve further. We plan to invest further in our core areas throughout 2017 and remain focused on aiding our clients in their strategy for digital transformation and moving towards profitability."
Both the full Annual Report and Financial Statements and the notice of AGM, convening a general meeting of the Company, to be held at 30 Crown Place, London, EC2A 4ES on the 15th May 2017 at 11 a.m. are available on our website at www.mi-pay.com/investor-document-centre/ and will be posted to Shareholders shortly.
For further information please contact:
Mi-Pay Group IFC Advisory Zeus Capital
plc
Tel: +44 207 Tel: +44 203 053 Tel +44 161 831
112 2129 8671 1512
Seamus Keating, Graham Herring Nick Cowles
Chairman
John Beale, CFO Tim Metcalfe Jamie Peel
Heather Armstrong
About Mi-Pay Group
Founded in 2003, Mi-Pay Group delivers fully outsourced online and related payment solutions to digital 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.
Chairman's Statement
During 2016, Mi-Pay has continued to deliver improvements in its trading performance supported by changing trends in the global market. This increases service delivery complexity and the risk for mobile operators. This makes the Mi-Pay proposition increasingly relevant to our clients and the market in which we operate:
1. Increasing consumer demand and availability
of digital content is driving an exponential
increase in data consumption via the mobile
device.
2. High profile data security breaches have
driven cyber security and the protection
of customer data to be strategically critical
to our clients' success and brand value.
3. E-commerce payment fraud is increasingly
the method of choice for criminality with
the proliferation of new payment solutions
adding complexity to risk management.
4. In contrast, consumers now expect a quick,
simple e-commerce digital experience with
flexible payment solutions. 3rd party mobile
friendly 'wallet' payment solutions such
as PayPal and Amazon Payments are increasingly
the choice of consumers.
5. Operators require new ways to manage margin
and retain their existing customers more
effectively via digital payment channels.
Mi-Pay therefore dedicates its resources to answer these challenges for our clients as they look to digitally transform their businesses. Our solutions have delivered a 29% increase in payments processed to GBP83.4 million during the year (2015: GBP64.7 million). We have seen consumers naturally migrating to the digital channels from the retail environment and we continue to roll out more solutions to our clients and deliver more market leading digital payment solutions to improve the on-line and on-device experience.
There is an increasing level of consolidation within the European mobile operator community which creates both opportunities for growth and risks to our existing revenues as their customer bases are merged and they consolidate their digital payment solutions. We believe our fully managed solution is well placed to be competitive in these opportunities.
Crucially, we have invested to ensure our solution provides the highest level of security, risk management and stability to our clients. As a consequence of our growth in volumes and investment we continue to see improved operational efficiencies, building on those achieved in 2015:
-- We have further enhanced the efficiency
of our trading model, driving our gross
profit margin up by 8% to 64%.
-- We have delivered a further GBP0.6 million
reduction in administrative expenses as
we better utilise our scalable technology
which, when combined with the gross profit
improvement, reduced our operating losses
to GBP0.4 million (2015: GBP1.4 million).
-- We have enhanced our data security retaining
the highest level of PCI accreditation and
continued to develop our fraud solution
to include a client portal and machine learning
capability.
-- We connected with Amazon Payments, being
the first to deliver their payments solution
to the operator community and delivering
'in-app' top ups to a number of our clients
during the year.
This growth enabled our cash outflow during the year to reduce to GBP0.3 million (2015: GBP0.8 million), when excluding the movement in client related funds. This included a GBP0.1 million exceptional expenditure as we reviewed opportunities to better utilise our scalable platform through potential mergers and acquisitions and we expect to continue to review opportunities in 2017. Importantly, in the 6-month period to 31 December 2016 there was no net cash outflow.
Outlook
We will continue to invest in the following core areas in 2017 - data security, payment security, best in class e-commerce payment solutions for digital products and channels to drive increased revenue and customer retention. We will remain focused on assisting our clients to transfer their existing customers from paper to digital, increase their revenues, reduce risk and churn and enhance their margins as well as deal with the challenges of market consolidation, which offers Mi-Pay larger growth opportunities but will take longer to deliver as Operators integrate their platforms.
In addition, our proven ability to manage payment data security via our secure vault solution and deliver dedicated payment fraud management solutions will provide wider revenue opportunities and whilst market development remains slow, we will continue our focus on the long-term opportunities including South East Asia.
Our financial performance improved significantly through 2016 and we continue to progress towards profitability. This is being driven by continuing growth in transaction volumes in early 2017, strong gross margins and a healthy cash position.
On behalf of the board I would like to thank all our employees, clients, investors and partners who have enabled Mi-Pay to deliver on its core targets and continue to support our growth.
Seamus Keating
Non-Executive Chairman
4 April 2017
CEO Review of Operations
Revenue
During 2014 and 2015 we focused on the investment of our infrastructure, new technology solutions and delivering long-term financial stability and we are now seeing the benefits of this. In 2016 we delivered a 29% increase in payment transaction value processed to GBP83.4 million (2015: GBP64.7 million) and a 66% increase since 2014 (2014: GBP50.1 million). This increased our core annuity based Transaction Services Revenues by 14% to GBP2.6 million from GBP2.3 million and was delivered primarily from our existing European clients who continue to deliver 90% of our revenues. The lower percentage revenue growth versus payment transaction value processed growth was due to a reducing average commission per transaction as we deliver more competitive solutions to our growing clients and a GBP0.2 million reduction in revenue over the comparative periods due to changes in the way we trade with a major client, who insourced the lower value payment processing element of our service that we traditionally charge at cost. This enabled us to re-sign with a two-year contract extension. Adjusting for this effect our underlying growth was 23%. Whilst both changes impacted our revenue growth, they had no negative impact on our gross profits demonstrating our ability to flexibly adapt our commercial model to our customers' requirements without impacting our performance levels.
We still expect our opportunities in Asia to deliver over the longer term, however, they remain slow in growing at this stage. Our Professional Service Revenues at GBP0.7 million remained consistent with 2015 following the continued implementation of new services to our clients and further in-house development of our tokenised card vault solution. Total revenues rose to GBP3.3 million from GBP3.0 million in 2015.
We deliver two core revenue streams from our clients:
-- Transaction Services Revenue is driven from
the processing of transactions on behalf
of our clients. This is our core business
and can deliver gross profit margins in excess
of 50%, which in turn creates recurring,
annuity based revenue in a naturally expanding
market. This provides a solid, sustainable
and growing source of revenue.
-- Professional Services Revenue relates to
the development, delivery and hosting of
our platform and client solutions. Critically,
this revenue traditionally relates to the
implementation of new services for clients
which in turn increases our long-term Transaction
Services Revenues.
Underlying Revenue Trends
-- 80% of our clients grew their revenues with
us as their customers migrated to the digital
channels we offer.
-- Our largest client has grown to 22% of our
revenue, due to transaction growth and the
benefit from the stronger Euro exchange rates
during the period. Our 10 largest clients
equate to 84% of our revenues, however, we
average over 5 years of contractual relationship
with these clients.
-- Our self-developed card storage vault solution
continues to drive strong revenues, delivering
13% of total revenues. As cyber security
and data protection risks become increasingly
relevant, our intellectual property and experience
in this market offers us long term opportunities.
-- Over 2015 and 2016 we have seen consumers
moving to device led and mobile wallet payment
solutions:
* A three-fold increase in the use of hand-held devices
to pay for services, migrating from traditional
retail and interactive voice channels.
* 57% increase in the use of mobile wallet payment
solutions such as PayPal and Amazon Payments
following both the hand-held device preference of
consumers and the need for simple, but trusted and
secure payment options.
* This in turn has seen an 81% increase in consumers
preferring not to store payment details directly with
operators and remain unregistered as they utilise
their mobile devices as payment wallets.
Our focus is on our solutions in these areas. We continue to bring the best on-device payment solutions to the operator community, delivering Amazon Payments in 2016 alongside our existing PayPal relationship and have developed enhanced solutions in our cyber security and payment fraud management systems to accommodate these payment solutions. The ability to utilise device identification and be less reliant on cardholder data to make acceptance fraud based decisions is an increasing requirement for success.
Key Performance Metrics & Operational Investments
We will deliver long-term success from providing flexible, secure, risk free solutions targeted at increasing customer expenditure, enhancing customer retention whilst removing our clients' risks and future proofing their payment requirements.
Our major contracts indemnify our clients from fraudulent transactions and only charge for successfully completed ones, an offering more strategically aligned with our clients than that of the general payments market. As such it is critical that we deliver world class payment fraud management and payment transaction optimisation rates to both protect our gross profit margins but also deliver real business value to our clients and their customers. It is here that we target our investments.
We continued to see high levels of transaction success rates at 88%, improved against 2015 (86%). Critically, we delivered a 33% reduction in our payment fraud levels to 0.06% of transaction value which we see as market leading. This has enabled us to increase gross profits to GBP2.1 million (2015: GBP1.7 million) with our gross margin increasing to 64% (2015: 56%). This allows us commercial flexibility with our clients to support their needs and drive larger volumes.
Our market remains competitive and we have seen our average commission per transaction reduce from 4.3% in 2013 to 3.1% in 2016 as we offer better commercial terms to our clients as their volumes grow. We have successfully offset this reduction at margin level due to the ability to increase average expenditure per consumer, improve the percentage of successful transactions whilst reducing the number of fraudulent ones and driving a reduced cost of payment with our payment partners. It is pleasing to therefore see our increase in gross margins and profits whilst remaining commercially competitive.
The Group also considers its revenues, gross profit margins and administration expenses as key performance metrics and these are reviewed in the Financial Review.
Infrastructure Investments
Following our improvement in the efficiency of our delivery infrastructure in 2014 and 2015 we have looked to focus more on increasing the market relevance of our solutions and as such have increased our research and development expenditure, excluding tax credits received, to GBP0.9 million in 2016 from GBP0.6 million in 2015, with this increase offset by reductions in our general and administration costs. Our key areas of focus are:
-- Data Security: The security of the data we
hold is critical to our success. We continue
to invest in our infrastructure from a cyber
security perspective to protect the consumer
data we hold. In 2016 our solution was confirmed
as PCI/DSS 3.2 compliant and recognised as
an 'Outstanding Solution Hosted on IBM Cloud'
within a security framework and we are well
set to be fully compliant with the incoming
General Data Protection Regulation.
-- Payment Security: We continue to invest in
our internal payment fraud solution seeing
year-on-year improvement in performance.
We have enabled client portals, real time
'replay' functionality and geolocation tracking
to enhance device recognition.
-- On-Device Solutions: Consumers increasingly
prefer to pay for services via their device.
Direct integration with Amazon Payment has
enhanced our payment solutions and we increasingly
deliver mobile applications and optimised
device payment experience for our clients.
Our ability to increase the likelihood of
a quick, secure and successful transaction
is key to our success.
-- Data & Content: As data usage continues to
grow exponentially we have enhanced our capability
to work with operators and content providers
to manage real time data bundles and responsive
top-ups. This investment is primarily delivered
by our own development team enabling us to
retain intellectual property and ensure the
solution is applicable across all of our
customers.
This investment is primarily delivered by our own development team enabling us to retain intellectual
property and ensure the solution is applicable across all of our customers.
All of our investments in the growth of revenues, new markets, operational efficiency and infrastructures are reliant on the support and dedication of our employees. Their experience and dedication remains our most valuable resource and we would particularly like to thank them for their efforts, support and commitment in delivering these challenging projects successfully, which has created the platform and environment for success.
Michael Dickerson
Chief Executive Officer
4 April 2017
Financial Review
The 2016 financial performance reflects the expected progression from our investments in 2014 and 2015. We have increased revenues, delivered further improvements to our commercial trading model and infrastructure which has resulted in increased gross profit margins, reduced costs, and subsequently reduced losses for the year.
Revenues and gross profits
We continued to see strong growth in our payment transaction value processed, the core driver for our revenue. We processed 6.2 million transactions which generated GBP83.4 million of customers' payments. (2015: 5.2 million transactions and GBP64.7 million of customers' payments) with this growth being driven primarily from our existing client relationships. 80% of our top 10 customers increased their payment transaction values processed as their customers migrate to the digital channel.
Total revenue was GBP3.3 million for the year ended 31 December 2016, in line with management expectations and 9% ahead of the prior year.
For Transaction Services Revenue the year-on-year growth was 14% (2015: 11%). However, this was achieved despite the impact of a GBP0.2 million reduction in revenue over the comparative period due to changes in the way we trade with a major client who insourced the lower value payment processing element of our service that we traditionally charge at cost, making no impact on our gross profits. When adjusting for this, Transactional Services revenue growth for the year was 23%.
Professional Services Revenues were in line with the prior year at GBP0.7 million (2015: GBP0.7 million) as we developed new services to our clients and we continued to deliver chargeable enhancements to our Card Vault Solution during the year, which accounted for 59% of this revenue stream. Whilst Professional Services Revenues achieved a higher gross profit margin (usually in excess of 70%), they are primarily non-recurring one-off project based sales for payments for existing clients and over the longer term we expect this part of the business to reduce as our Transaction Services Revenues grow.
Our gross margins have remained strong and we have delivered another year-on-year improvement. This remains a key focus for us and demonstrates an ability to drive an efficient delivery model. We expect these to be consistent across geographies, however, our revenue segments drive differing gross profit margins and as such our revenue mix impacts our overall performance. This has not materially changed from 2015.
For the year ended 31 December 2016 our gross profits increased to GBP2.1 million (2015: GBP1.7 million), with gross profit margins increasing to 64% (2015: 56%). Since 2014, we have seen our gross margins increase from 45% despite the fact that our average commission rate across all our customers for Transaction Services Revenue has reduced from 4.1% to 3.1% over the same period and as such we have demonstrated an ability to maintain and grow margins against commercial pressures in the mature European market. Our core drivers for this increase are:
-- Driving a 9% increase in average transaction
value (ATV) which increases our revenue and
margin per transaction. This has been delivered
as consumers increasingly require larger
data bundles to top up as their need for
content and digital services increases.
-- Continued investment in our fraud solution.
Replacing a 3rd party solution with our own
in-house solution, which in turn has delivered
a further 33% year-on-year decrease in fraud
levels to 0.06% (2015: 0.09%)
-- Enhanced platform stability, investment in
our on-device mobile app solutions and increased
investment in consumer driven, device friendly
payment solutions such as PayPal and Amazon
Payments have increased payment success rates
to 88% (2015: 86%)
-- Increasing transaction volumes driving enhanced
commercial relationships with our payment
partners.
Commercial pressures remain and we expect to see continued focus on delivering improved terms to our clients as their volumes grow, however, we remain confident that our solution is efficient, commercially flexible and our added value in outsourcing fraud risk, cyber security services and customer relationship solutions will enable us to continue to add value to our clients above and beyond traditional payment processing.
We delivered a GBP1.0 million reduction to operating losses during the year, reducing to GBP0.4 million from GBP1.4 million in 2015.
-- GBP0.4 million due to the improvement in
gross profits.
-- GBP0.3 million due to the reduction in operational
costs as we reduced general and administration
expenditure by GBP0.6 million, offset by
GBP0.3 million incremental focus on research
and development expenditure.
-- GBP0.3 million reduction as no further charges
for share-based payments to the consolidated
statement of comprehensive were made during
the year. No options were exercised during
the period.
2016 has therefore delivered another positive period of trading improvement for Mi-Pay at all levels within the Group and one in which we have increased focus on the development of our solutions.
We remain focused on delivering positive cash flow to the Group and have continued to progress over 2016. For the 6 months' period to December 2016, when, excluding depreciation, unpaid deferred Director salaries and non recurring expenditure on merger and acquisition activities, the Group delivered an underlying profit and this is reflected in our cash flows.
Our core business model is based upon monthly growth, high margin, annuity based revenue streams in combination with low working capital and capital investment requirements.
Cash flow, assets and liabilities
The Group ended the year with GBP3.5 million in cash and cash equivalents (2015: GBP3.5 million), noting that GBP2.4 million of this balance related to the operation of managing client payments. Within our cash balance:
-- Client related funds increased by GBP0.3
million due to the growth in transaction
volumes and improved payment terms with our
payment partners. Over the longer term we
expect this growth to reverse as we look
to improve our client repayment terms to
closer align ourselves with our clients.
-- Our cash outflow on operational activities
was GBP0.3 million, of which
* GBP0.1 million related to expenditure on our core
business operation and working capital noting that
the Board continues to defer salaries equating to
GBP0.1 million during the year. All of these costs
are included in the consolidated statement of
financial position.
* GBP0.1 million related to capital expenditure and
lease payments in respect of our core transactional
infrastructure and technology investment. We do not
capitalise development costs from our employees.
* GBP0.1 million of non-recurring expenditure related
to professional fees incurred on merger and
acquisition activity.
During the period, we recovered GBP0.3 million in Research and Development tax credits (2015: GBP0.3 million) directly attributable to the development costs of the group and we expect to deliver in excess of GBP0.2 million in 2017. In the 6-month period to 31 December 2016 our cash outflow excluding client related cash was neutral.
The Group had limited capital expenditure exposure at less than GBP0.1 million and does not meet the IAS 38 criteria to enable it to capitalise its internal development costs. The Group continues to service a finance lease related to the five-year license arrangement for our core transaction processing platform, effective from 28 June 2013 of which GBP0.1 million remained outstanding as at 31 December 2016.
Excluding the increase in client funds, there were no other material movements in working capital with the Group being well protected from risk in this area as its debtor fees relating to its core Transaction Services Revenues are deducted at source before net payments are made to clients. Trade and other payables increased by GBP0.6 million due to the growth in amounts due to our clients for payments received which is offset by the increased cash holding. The Group has no external borrowings.
John Beale
Chief Financial Officer, Company Secretary
4 April 2017
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2016
Note Year ended Year ended
31 Dec 31 Dec
2016 2015
GBP GBP
------------------------------------- ----- ------------ ------------
Payment Transaction Value Processed 83,404,805 64,666,714
------------------------------------- ----- ------------ ------------
Transaction Services Revenue 2,565,629 2,257,130
Professional Services Revenue 713,037 757,044
------------------------------------- ----- ------------ ------------
Revenue 2 3,278,666 3,014,174
------------------------------------- ----- ------------ ------------
Cost of sales (1,172,669) (1,322,832)
------------------------------------- ----- ------------ ------------
Gross profit 2 2,105,997 1,691,342
Administrative expenses
------------------------------------- ----- ------------ ------------
General and administration (1,699,551) (2,287,618)
Research and Development (594,972) (384,909)
Depreciation (132,564) (127,121)
Share-based payment - (326,310)
Exceptional items (121,581) (4,360)
------------------------------------- ----- ------------ ------------
Total administrative expenses 3 (2,548,668) (3,130,318)
Operating loss (442,671) (1,438,976)
------------------------------------- ----- ------------ ------------
Finance income 3,492 3,512
Finance expense (67) (478)
------------------------------------- ----- ------------ ------------
Loss before taxation (439,246) (1,435,942)
Taxation - (3,149)
------------------------------------- ----- ------------ ------------
Loss for the year from continuing
operations (439,246) (1,439,091)
------------------------------------- ----- ------------ ------------
Other Comprehensive expense
for the year
Amounts which may be subsequently
recycled to profit and loss
Exchange differences on translation
of foreign operations 88 (696)
Total comprehensive expense
for the year attributable to
the owners of the parent (439,158) (1,439,787)
------------------------------------- ----- ------------ ------------
Basic and diluted loss per ordinary
share for continuing operations 4 (1.1)p (3.6)p
------------------------------------- ----- ------------ ------------
Consolidated Statement of Financial Position
For the year ended 31 December 2016
Note 31 Dec 31 Dec
2016 2015
GBP GBP
--------------------------------- ----- ------------- -------------
ASSETS
Non-current assets
Property, plant and equipment 176,735 258,059
--------------------------------- ----- ------------- -------------
Total non-current assets 176,735 258,059
Current assets
Trade and other receivables 5 897,190 724,335
R&D credit receivable 220,000 203,657
Cash and cash equivalents 3,518,217 3,530,154
--------------------------------- ----- ------------- -------------
Total current assets 4,635,407 4,458,146
Total assets 4,812,142 4,716,205
--------------------------------- ----- ------------- -------------
LIABILITIES
Current liabilities
Trade and other payables 6 (4,074,921) (3,473,741)
Obligations under finance lease (66,000) (66,000)
--------------------------------- ----- ------------- -------------
Total current liabilities (4,140,921) (3,539,741)
Non-current liabilities
Obligations under finance lease (32,915) (99,000)
--------------------------------- ----- ------------- -------------
Total non-current liabilities (32,915) (99,000)
Total liabilities (4,173,836) (3,638,741)
--------------------------------- ----- ------------- -------------
Net assets 638,306 1,077,464
--------------------------------- ----- ------------- -------------
Equity 7
Share capital 4,159,324 4,159,324
Share premium 1,403,923 1,403,923
Share options reserve 624,729 624,729
Reverse acquisition reserve 6,920,115 6,920,115
Merger reserve 6,808,742 6,808,742
Retained deficit (19,278,527) (18,839,369)
--------------------------------- ----- ------------- -------------
Total equity attributable to
the equity shareholders of the
parent 638,306 1,077,464
Consolidated Statement of Cash Flows
For the year ended 31 December 2016
Year ended Year ended
31 Dec 31 Dec
2016 2015
GBP GBP
-------------------------------------- ----------- ----------------
Cash flows from operating activities
Loss before tax from continuing
operations (439,246) (1,435,942)
-------------------------------------- ----------- ----------------
Adjusted for:
Depreciation 132,564 127,121
Finance income (3,492) (3,512)
Finance expense 67 478
Share based payment - 326,310
R&D credits (308,710) (203,657)
(Increase)/decrease in trade
and other receivables (172,855) 34,808
Increase in trade and other
payables 601,180 833,887
Adjusted loss from operations
after changes in working capital (190,492) (320,507)
Interest received 3,492 3,512
Interest paid (67) (478)
R&D credit (paid)/received 292,370 339,333
Net cash flows from operating
activities 105,303 21,860
Cash flows from investing activities
Purchase of property, plant
and equipment (51,240) (74,899)
Net cash flows from investing
activities (51,240) (74,899)
Cash flows from financing activities
Proceeds from issue of share
capital, net of issue costs - 1,646,495
Finance lease payments (66,000) (66,000)
-------------------------------------- ----------- ----------------
Net cash flows from financing
activities (66,000) 1,580,495
Net (decrease)/increase in cash
and cash equivalents (11,937) 1,527,456
Cash and cash equivalents at
beginning of period 3,530,154 2,002,698
-------------------------------------- ----------- ----------------
Cash and cash equivalents at
end of period 3,518,217 3,530,154
-------------------------------------- ----------- ----------------
Consolidated Statement of Changes in Equity
For the year ended 31 December 2016
For the year Share Share Share Reserve Merger Retained Total
ended 31 December Capital Premium Options acquisition reserve deficit GBP
2016 GBP GBP reserve reserve 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 year - - - - - 88 88
Additional - - - - -
placing shares
Share-based - - - - -
payment
--------------------- ---------- ---------- --------- ------------- ---------- ------------- ----------
At 31 December
2016 4,159,324 1,403,923 624,729 6,920,115 6,808,742 (19,278,527) 638,306 --------------------- ---------- ---------- --------- ------------- ---------- ------------- ---------- 1. Accounting Policies
General information
Mi-Pay Group plc listed on the AIM - London Stock Exchange on 29 April 2014, registered at Seal House, 56 London Road, Bagshot, Surrey GU19 5HL. Mi-Pay Group plc was incorporated in the United Kingdom under the Companies Act. The principal activity of the Group for the year continued to be specialising in delivering fully outsourced on-line and related payment solutions to digital e-commerce clients, primarily in the mobile sector, enabling them to monetise their on-line proposition risk free.
Basis of preparation
The Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (IFRSs), as adopted by the European Union, and with those parts of the Companies Act applicable to Groups preparing financial statements under IFRSs.
The accounting policies applied in the preparation of these Financial Statements are consistent with those used in the prior year.
Basis of consolidation
Where the Company has control over an investee, it is classified as a subsidiary. The Company controls an investee if all three of the following elements are present: power over the investee, exposure to variable returns from the investee and the ability of the investor to use its power to affect those variable returns. Control is reassessed whenever facts and circumstances indicate that there may be a change in any of these elements of control.
The Consolidated Financial Statements present the results of the Company and its subsidiaries ('the Group') as if they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
Research and Development
Research and Development tax credits are included within and offset against the Research and Development line within administrative expenses.
During the year ended 31 December 2016, the Group has invested GBP903,682 (2015: GBP558,566) in Research and Development activities. When deducting the Research and Development credit of GBP308,710 (2015: GBP203,657) the net effect and total within the Research and Development line of the Consolidated Statement of Comprehensive Income is GBP594,972 (2015: GBP384,909).
Going concern
The Group made a total comprehensive loss of GBP439,158 for the year ending 31 December 2016 (year ended 31 December 2015: Loss of GBP1,439,787). As at the year end the Group does however have healthy cash balances, with cash and cash equivalent balances totalling GBP3,518,217 and in addition expects to receive at least GBP220,000 during 2017 in relation to annual Research and Development tax reclaims, an annual recovery, paid in cash it expects to continue in future periods until profitable.
The Directors have prepared a cash flow forecast covering a period extending beyond 12 months from the date of approval of these Financial Statements with this plan demonstrating that the Group will be able to fully settle its liabilities over the period. The improvement in trading performance during 2016 and reduction in the operating cost base of the business gives the Directors confidence that the Group will move to a monthly positive cash flow position without requiring further investment.
The Directors therefore are confident that sufficient funds are in place to support the going concern status of the Group and as such consider that it is appropriate to prepare the Group's Financial Statements on a going concern basis.
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
payment transactions on behalf of clients
and is Mi-Pay Group plc's core business.
For the majority of clients, Mi-Pay Group
plc collects gross transaction top up values
from acquirers less their acquirer fees,
on behalf of client mobile operators. Mi-Pay
Group plc generates net commission revenue
through charging clients a commission percentage
on transaction value as per each individual
client contract, with operators then receiving
the remainder.
-- 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. The measure of assets and liabilities attributable to each segment is not regularly provided to the chief operating decision maker of the Group, and as such, are not disclosed below.
Both segments are continuing operations and results are as follows:
Operating segments
2016 2015
GBP GBP
Transaction Services: Gross
Revenue 83,404,805 64,666,714
Transaction Services: Net Commission
Revenue 2,565,629 2,257,130
Professional Services Revenue 713,037 757,044
----------- -----------
Total revenue 3,278,666 3,014,174
Transaction services cost of
sales 1,036,046 1,167,525
Professional services cost of
sales 136,623 155,307
----------- -----------
Total cost of sales 1,172,669 1,322,832
Transaction services gross profit 1,529,583 1,089,605
Professional services gross
profit 576,414 601,737
----------- -----------
Total gross profit 2,105,997 1,691,342
Transaction services gross profit
% 60% 48%
Professional services gross
profit % 81% 79%
----------- -----------
Total gross profit % 64% 56%
Geographical information
All material non-current assets owned by the Group are held in the United Kingdom. In presenting the consolidated revenue information on a geographical basis, revenue is based on the geographical location of clients. The United Kingdom is the place of domicile of the Parent Company.
Revenue by location:
2016 2015
GBP GBP
Transaction Services Revenue
United Kingdom 1,424,913 1,320,464
Ireland 735,420 489,450
Rest of Europe 265,463 328,814
Rest of the world 139,833 118,402
Professional Services Revenue
United Kingdom 530,190 581,578
Europe 4,895 13,450
Rest of the world 177,952 162,016
---------- ----------
Total 3,278,666 3,014,174
The proportion of turnover that
is attributable outside the
UK 40% 37%
Major clients
During the year, there were 3 (2015: 2) clients that individually made up at least 10% of total revenue. In aggregate, this accounted for 50% (individually 22%, 15% and 13%) (2015: 28.67% (individually 16.24%, and 12.43%)) of total revenue
3. Operating loss
This is arrived at after charging:
2016 2015
GBP GBP
Expenses by nature
Total staff costs 1,634,502 2,216,277
---------- ----------
Staff costs - operating and
administration 676,613 1,353,051
Research and development (includes
staff costs) 594,972 384,909
Depreciation of property, plant
and equipment 132,564 127,121
Operating lease expense 37,454 58,258
Foreign exchange loss/(gain) (47,505) 1,028
Share-based payment - 326,310
Exceptional items 121,581 4,360
Other administration expenses 1,032,989 875,281
---------- ----------
Total administrative expenses 2,548,668 3,130,318
---------- ----------
4. Loss per share
2016 2015
Loss for the year (439,246) (1,439,091)
Weighted-average shares outstanding 41,593,229 40,175,719
----------- ------------
Basic EPS (pence) (1.1) (3.6)
Diluted EPS (pence) (1.1) (3.6)
The numerators shown above represent the total loss from continuing operations for the year.
As none of the share options in place at the Statement of Financial Position date were dilutive, 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
2016 2015
GBP GBP
Trade receivables 88,786 167,690
Less: Provision for impairment (8,670) -
-------- --------
Trade receivables - net 80,116 167,690
Client receivables 642,922 471,428
Prepayments 74,194 65,785
Other receivables 99,958 19,432
-------- --------
Total trade and other receivables 897,190 724,335
-------- --------
6. Trade and other payables
2016 2015
GBP GBP
Trade payables 186,343 109,480
Client payables 3,095,022 2,626,055
Accruals 367,167 364,775
Deferred income 15,408 134,766
Other payables - tax and social
security payments 339,144 233,515
Other payables 71,837 5,150
---------- ----------
Total trade and other payables 4,074,921 3,473,741
---------- ----------
7. Share capital and premium
Note Number Share capital Share premium
of shares GBP GBP
GBP
At 1 January 2015 33,984,533 3,398,453 518,298
Additional placing
shares * 7,608,696 760,871 885,625
At 31 December
2015 41,593,229 4,159,324 1,403,923
----------- -------------- --------------
At 1 January 2016 41,593,229 4,159,324 1,403,923
----------- -------------- --------------
At 31 December
2016 41,593,229 4,159,324 1,403,923
----------- -------------- --------------
* 7,608,696 ordinary shares of 10p were issued on 9 March 2015. These shares were issued at a premium of 13p, to provide further working capital for the
Company. Funds raised from these placing shares amounted to GBP1,750,000 (gross).
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR EAELLEFAXEAF
(END) Dow Jones Newswires
April 05, 2017 02:00 ET (06:00 GMT)
1 Year Mi-pay Chart |
1 Month Mi-pay Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
