Tue 5 Feb 2019 07:38 by ukcitymedia.co.uk about : operational news - 0 Comments - 1029 words
Earthport (AIM: EPO.L), the leading payment network for cross-border transactions, is pleased to provide a trading update in respect of the 6 months to 31 December 2018.
· Core payment business revenues, comprising payment transaction revenues and specifically attached foreign exchange revenues, were 18.5% higher at £11.8 million (H1 FY18: £10.0 million), reflecting higher transaction volumes and changes in both pricing and mix of business.
· Total revenues grew by 4.5% to £16.1 million (H1 FY18: £15.1 million) with FX business revenues and professional services revenues down on prior year.
· During the period £3.0 million of one-off, transformation and business restructuring costs were incurred.
· Cash and cash equivalents at 31 December 2018 of £23.1 million (30 June 2018: £28.3 million).
· Appointment of new CEO, CFO and executive management team.
· Executed an enterprise wide re-organisation, streamlining and focusing the organization to support the delivery of the board approved strategy.
· Further extended Earthport payment network with 2 new routes and taken first steps in IT transformation to enable efficient scaling up in the core payment business.
· Redesigned commercial proposition to tackle platform and marketplace client opportunities.
· Selectively increased core payment business customer base with targeted new signings whilst increasing average payment transaction volume and revenue per payment client.
· Average payment business transaction volumes reached more than 1 million per month with December month the highest ever recorded for the company.
· Value of payments processed by Earthport increased 12% to £5.8 billion (H1 FY18: £5.2 billion).
In line with expectation, Earthport has grown the core payments business whilst at the same time restructuring and repositioning the company building the capability to increase scale.
As announced on 25 January, the Board has recommended to shareholders an all cash offer for the Company made by Mastercard UK Holdco Limited ("Bidco"), an indirectly wholly-owned subsidiary of Mastercard.
Amanda Mesler, CEO of Earthport, commented: "I am delighted with the progress of the company in line with our expectations, and the revised strategy we set out to achieve. It is great to see growth in payment volumes and improving efficiency in the last six months."
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