MINOAN GROUP PLC — Earnings Release 2016

Aug 3, 2016

National Storage Mechanism | Additional information

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RNS Number : 0558G

Mi-Pay Group PLC

03 August 2016

This announcement contains inside information

3 August 2016

Mi-Pay Group plc

("Mi-Pay" or the "Company")

Trading Update and Notice of Results

Mi-Pay (AIM: MPAY), the leading provider of outsourced and fully managed digital transformation and mobile payment solutions to Tier 1 Mobile Network Operators and Mobile Virtual Network Operators, is pleased to provide a trading update for the six months ended 30 June 2016.  

The Group has continued to see growth and efficiency improvement across its business. Transaction value processed in H1 2016 increased by 34% to £39 million compared to H1 2015, leading to an expected total revenue for H1 2016 of £1.6 million. This growth has been achieved whilst maintaining high payment success rates and low fraud levels. Transaction revenue growth of 9% was lower than our volume growth of 34%, as one customer, on renewal opted to pay the merchant acquiring fee directly rather than through the Mi-Pay contract which now covers our highest value services. Our transaction growth and focus on the efficiency of delivery of our services therefore has enabled us to deliver an expected 33% increase in gross profits to £1.0 million (H1 2015: £0.7 million), importantly showing a 13 percentage point improvement in gross margins to 62%. Combined with our continued control of administrative expenses we expect our adjusted operating loss* to improve by £0.6 million to £0.2 million versus the six months to 30 June 2015. The Company's cash position remains strong and above management expectations at £3.4 million as at 30 June 2016.

For the full year, we expect transaction value processed to be in the region of £80 million (2015: £65 million). Together with our current visibility of professional services projects, we expect total revenue for 2016 in the range of £3.2 - £3.5 million with gross margins expected to be in line with those achieved in H1 2016. The Board is confident that good progress is being made towards profitability and cash flow break even.

The Company will publish its half year results for the six months to 30 June 2016 on 21 September 2016.

For further information, please contact:

Mi-Pay Group plc	IFC Advisory	Zeus Capital
Tel: +44 207 112 2129	Tel: +44 207 653 9850	Tel:  +44 161 831 1512
Seamus Keating, Chairman	Graham Herring	Nick Cowles
John Beale, CFO	Tim Metcalfe	Jamie Peel

About Mi-Pay Group

Founded in 2003, Mi-Pay Group enables clients to transform their customers' payment journey and move them from paper to digital, improving the overall customer experience and delivering more choice and flexibility for pre-paid customers.  Our 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.  Customers include Mobile Network Operators (MNOs) and Mobile Virtual Network Operators (MVNOs).   Our fully outsourced online payments solutions are enhanced by a fully integrated suite of risk management tools to provide the highest level of payment fraud management and data security for our clients and their customers.    Mi-Pay sells, integrates and operates its products and solutions on a global basis.  For further information, please visit www.Mi-Pay.com or the contact details as shown above.

*Adjusted Operating loss defined as Operating Loss for the period before charging share based payments and non-recurring expenses directly attributable to investment, non-operational activities and group reorganisation.

This information is provided by RNS

The company news service from the London Stock Exchange

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