TIDMEPO
RNS Number : 6498V
Earthport PLC
25 July 2018
25 July 2018
("Earthport" or the "Company")
Unaudited Trading Update for the fiscal year ended 30 June
2018
Earthport (AIM: EPO.L), the leading payment network for
cross-border payments, today provides an unaudited trading update
for the fiscal year ended 30 June 2018 (FY 2018).
Financial Highlights
-- Revenue grew by approximately 5.3% to GBP31.9 million (FY 2017: GBP30.3 million)
-- Adjusted gross margin decreased by 1.2% to 67.1% compared to
68.3% in FY 2017 due to network delivery costs and mix of
business
-- Administrative expenses increased by approximately 9.1% to
GBP28.8 million (FY 2017: GBP26.4 million), representing 90% of
revenues (FY 2017: 87%)
-- Adjusted EBITDA loss increased by approximately GBP1.9
million to GBP4.8 million (FY 2017: GBP2.9 million)
-- Cash Balance at 30 June 2018 amounted to GBP28.3 million,
compared to GBP11.9 million at 30 June 2017. This includes net
proceeds of GBP24 million raised in October 2017.
Summary
FY 2018 has proven to be a challenging year for Earthport, with
delays in implementation of client contracts and a change at one of
the Group's leading e-commerce clients announced in December 2017.
Despite this, revenue grew by 5.3%, with approximately 10.5 million
transactions undertaken on the Earthport platform (FY 2017: 11.0
million) with a transactional value of $16.9 billion (FY 2017:
$17.5 billion). The adjusted gross margin decreased to 67.1% (FY
2017: 68.3%), due to network delivery costs, geographical mix of
transactions and the associated differences in transaction price
per corridor, in line with management's expectations.
During the financial year, Earthport has continued to invest in
its sales and relationship management teams to support its
expanding network and clients, which now covers 88 countries, a 35%
increase in international routes during the year.
As stated in the interim report, the Board's focus has been on
delivering improvements to the Group's cost base and operational
efficiency and, as a result of our continuing investment the
adjusted EBITDA loss for the year increased by GBP1.9 million to
GBP4.8 million (FY 2017: GBP2.9 million), which is below than
previously expected. The Group's cash balance at 30 June 2018 was
GBP28.3 million, enabling us to continue investing strategically
where needed.
In March, Earthport announced that its wholly owned subsidiary,
Earthport North America, Inc. received a New York State money
transmitter licence. Management is in the process of developing a
plan for new commercial opportunities and expansion of this
offering to capture commercial opportunities in New York state in
relation to FX services. The Group continues to work towards
acquiring additional state licences enabling further expansion in
the United States.
Amanda Mesler assumed the role of CEO on 1st July 2018, bringing
with her a wealth of global experience, growing technology enabled
businesses and bringing value to all stakeholders. She is
developing the growth strategy for the company over the coming
months.
With effect from 1st July 2018, Phil Hickman has reassumed his
role as Non-Executive Chairman of the board following his role as
Interim CEO and Hank Uberoi has stepped down from the Executive
Chairman position but remains on the board as a non-executive
director with Senior Advisor responsibilities.
For further information, please contact:
Earthport Plc 020 7220 9700
Phil Hickman, Chairman, Non-Executive Director
Amanda Mesler, Chief Executive Officer, Executive Director
Newgate 020 7653 9848
Bob Huxford/James Ash
N+1 Singer (Nomad & Joint Broker) 020 7496 3000
Mark Taylor/James White
Shore Capital (Joint Broker) 020 7408 4090
Toby Gibbs/Stephane Auton
About Earthport
Earthport provides cross-border payment services to banks and
businesses. Through a single relationship with Earthport, clients
can seamlessly manage payments to almost any bank account in the
world, reducing costs and complexity to meet their customers'
evolving expectations of price, speed and transparency.
Earthport offers clients access to global payment capability in
200+ countries and territories, with local ACH options in 88
countries and an evolving suite of currencies and settlement
options.
Earthport continues to invest in the establishment of in-country
bank partnerships across the world, bringing together its deep
market and regulatory expertise in order to maintain compliant and
commercially competitive services.
The result - a global payments network accessed via a single
relationship, delivering significant cost and operating
efficiencies for banks and businesses servicing high volumes of
lower value payments.
Headquartered in London with regional offices in New York,
Dubai, Miami and Singapore, Earthport is a public company, traded
on the London Stock Exchange (AIM: EPO).
Please visit www.earthport.com for more information.
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END
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