Revenue and earnings slip at Billing Services Group

Telecommunications clearing and financial settlement product provider Billing Services Group announced its audited results for the year to 31 December on Wednesday, with revenue slipping to $30.2m from $36.4m.

The AIM-traded company generated $5.7m of EBITDA, down from $6.4m in 2015, and recorded net income of four cents per share, improving from three cents per share.

It improved its gross margin by two percentage points to 53.0% in 2016, from 51.0% in 2015, and reduced operating expenses by $1.9m to $10.3m.

The firm also repaid $2.1m as of Wednesday, of a total $5.2m pursuant to its settlement with the Federal Trade Commission.

“2016 was a remarkable year,” remarked non-executive chairman Patrick Heneghan.

“While earning four cents per share of net income and generating $7.7m of cash flow, the company expanded its service platform to meet the direct billing needs of customers.”

Heneghan said that was a complex task, requiring broad revisions to intricate processes and historical practices.

“I cannot overstate both the challenge and the success.”