Mi-Pay narrows loss as transaction value improves

Mobile payment solutions provider Mi-Pay Group presented its final results for the 12 months to 31 December on Wednesday, reporting that £83.4m iin payment transaction value was processed during 2016, from 6.2 million processed transactions.

That compared to £64.7m and 5.2 million, respectively, in 2015.

The AIM-traded firm said total revenue rose to £3.3m for the year, from £3.0m, with transaction services revenue improving to £2.6m from £2.3m, and professional services revenue remaining stable at £0.7m.

Gross profits increased 25% to £2.1m as revenues increased alongside an 8% year-on-year increase in efficiencies.

That reportedly delivered a gross profit margin of 64% for the year, up from 56% in the prior period.

The company said it “significantly” reduced its delivery cost base from 2015, reducing administrative expenses by £0.6m to £2.5m.

Its operating loss stood at £0.4m, narrowing from £1.4m, while cash and cash equivalents as at year-end stood at £3.5m, remaining stable year-on-year.

Its basic diluted loss per share was 1.1p, narrowing from 3.6p.

“Mi-Pay has continued to make steady progress throughout 2016 as our market leading proposition becomes ever more relevant to mobile network operators,” said chairman Seamus Keating.

“We are pleased to see increased rates of migration to digital channels and we have continued to develop our growing suite of solutions.”

Keating said the “foundations” the board laid in 2015 to improve its operational efficiencies had continued, and it was 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.”