PCI-PAL loss widens on expansion costs
PCI-PAL on Wednesday reported a widened annual loss as costs increased on the back of its expansion into North America.
The payment technology specialist booked a pre-tax loss of £4.5m for the year ended 30 June, compared with a loss of £3.8m from the prior year.
Administrative expenses rose by 37% to £6.4m, while revenue jumped by 40% to £2.8m on 95% renewal and retention rates.
Gross margin improved from 43% to 60% as the business now has only a limited reliance on third party carriers following the transition of its service delivery to Amazon Web Services.
Chief executive James Barham said the company continued to see increases in sales opportunities as it worked on building commercial partnerships.
"As a result the business is developing strong revenue visibility, and I can report that the new financial year has started well and in line with management expectations," he said.
PCI-PAL shares were down 3.74% at 25.51p at 0941 BST.
(Editing by Frank Prenesti)