Home » News » AIM News » Mi-Pay Group plc Expect to see continued growth
Mi-Pay Group Plc

Mi-Pay Group plc Expect to see continued growth

Mi-Pay Group plc (LON: MPAY), the leading provider of outsourced digital transformation and mobile payment solutions, has today provided a trading update for the year ended 31 December 2018.


– Trading for the year was in-line with market expectations, with increased year-on-year revenues.

– Group operated profitably before interest, tax and depreciation in the second half of the year.

– Increased payment transaction values processed to £106 million during the year (2017: £94 million).

– Full year operating loss reduced to £0.2m (2017: £0.6m loss).

Trading update

Trading for the year ended 31 December 2018 was in line with market expectations, with total revenue for the year expected to be £3.3 million (2017: £3.0 million). The Company has continued to experience strong growth in transactions, delivering an increase in payment transaction values processed during the year to £106 million (2017: £94 million). In addition, the Company successfully indemnified over £43 million of payment transactions for fraudulent activity during the period, using its proprietary payment fraud solution, resulting in new revenue of £0.3 million for the Group. This was achieved whilst maintaining high payment success rates and low fraud levels, which is expected to maintain gross margins of above 60% for the year.

The Company has also delivered further year-on-year reductions in administrative expenses which, when combined with the revenue growth, is expected to result in a reduction in operating loss to £0.2 million (2017 operating loss: £0.6 million). During the six-month period to 31 December 2018, Mi-Pay delivered a profit before interest, tax and depreciation.

The Company’s cash position at 31 December 2018 increased to £3.5m from £2.9m as at 31 December 2017 due to the increase in payment transactions processed. £2.9m of this balance related to the management of client payments. The closing cash position as at 31 December 2018, excluding client payment balances was £0.6m, equivalent to the closing 2017 balance.

Appointment of CFO on a part-time basis

On 29 January 2019, the Company appointed Andrew Bowen as Chief Financial Officer on a part-time basis (a non-Board role) to support the Board and management team in its governance and development. Andrew has previously held finance director roles at a number of technology telecommunications businesses. He is a Principal with the FD Centre Ltd and his services are supplied under contract with that company.

Michael Dickerson, Chairman of Mi-Pay Group plc, commented:

“Delivering underlying profitability in the second half of 2018 was a key target for Mi-Pay and we are pleased to have achieved this important milestone. The improved performance seen in H2 2018 was a result of delivering a new revenue channel for payment fraud management through the leverage of our in-house technology, a continuing reduction of our operating cost base and strong growth across our existing clients. We expect to see this growth continue as the e-commerce and digital channels increasingly become our clients’ core strategic focus for customer engagement and our new fraud management services continue to expand.”

Join us on our new LinkedIn page

Follow us on LinkedIn