TIDMPCIP
RNS Number : 2318U
PCI-PAL PLC
11 July 2018
PCI-PAL PLC
("PCI Pal", the "Group" or the "Company")
Trading update
Contract Wins
& Notice of Results
PCI-PAL PLC (AIM: PCIP), the customer engagement specialist that
secures and protects payment card data for companies handling
payments by phone, is pleased to announce a trading update for the
year ending 30 June 2018, an update on contracts and notice of its
final results announcement.
Key highlights include:
-- A year of significant development: new platform launched; US
operation launched and scaled-up; revenues increasing year-on-year;
with results expected to be broadly in line with expectations.
-- Recurring revenues expected to have increased to over 75% of
total turnover (2017: 65% of total turnover).
-- More channel partner contracts signed in the period including
Capita Pay 360 in Europe and a global agreement with NewVoiceMedia,
and a major payment service provider and a leading cloud service
provider in North America.
-- Across both platforms, 48 contracts signed in the last twelve
months with total RAV(1) of GBP0.624 m of which 30 came from
channel partners.
-- 15 new contracts won on the new Amazon Web Services based
platform since its launch in the year.
-- 70% of new qualified sales opportunity enquiries now received
at the year-end have been generated via our channel partners.
-- Pipeline of qualified sales opportunities continues to grow
across all our targeted regions and at GBP22.4m has more than
doubled since 31 December 2017 (GBP10.5m).
-- Continued investment in future growth as detailed in the
interim results. Global employee base increased from 36 at 31
December 2017 to 41 at the year end.
-- Closing cash and cash equivalents balance at 30 June 2018 of
GBP3.76m (30 June 2017: GBP1.96m)
(1) RAV = Estimated Recurring Annual Value of contract
Product development update:
At the end of October 2017, we announced that our
second-generation, PCI-PAL Amazon Web Services based cloud platform
("PPAWS"), had been certified as PCI DSS Level 1 Compliant allowing
us to launch the new platform to the market.
Since this date we have made good progress in introducing the
service to our major target locations. As at 30 June 2018 we have
live and testing instances of the new platform in London, Virginia
and Montreal. Since the launch we have signed 15 new contracts with
a combined RAV of GBP0.29m. Interest in the new platform continues
to build.
This second-generation platform is technically advanced and our
partners and prospective customers have undertaken significant
levels of load testing. This level of testing was more than we
originally anticipated and as a result of the additional testing,
the first customers are now expected to take approximately six to
eight months before their services go live. It is only at go-live
that we start recognising the monthly recurring income and any
associated professional services fees.
Sales and marketing update:
It is PCI Pal's stated objective to deliver its services in
partnership with major vendors across the world. The Board is very
pleased with the progress that has been made. At the end of the
last financial year PCI Pal was contracted with relatively few
channel partners, the majority of whom were focused on the UK
market. During this financial year we have successfully negotiated
new agreements with several important partners including Capita Pay
360 in Europe and a global agreement with NewVoiceMedia, and a
major payment service provider and a leading cloud service provider
in North America. We will continue to focus on growing our global
network into the future.
North America
The regional business was only opened on 1st July 2017 and fully
launched in February this year. Despite this relatively recent
launch, we have signed and on-boarded a major payment gateway,
which has already bought us two contracted customers. We have also
partnered with a major regional telco, which has verbally confirmed
their first sale in Canada, and the business has signed its first
customer with a global cloud contact centre provider.
In the financial year ending 30 June 2018, the North America
division signed 5 new customers of which 60% were via our channel
partners.
EMEA
The EMEA region is a more developed market than the North
American market and our PCI Compliant services have been sold in to
this region since 2012, to customers primarily located in the
UK.
In line with our stated strategy, we continue to focus on
developing our channel partnerships in Europe and we expect the
numbers to continue to grow in the next financial year. We are
particularly pleased to have received confirmation from a major UK
telco provider with operations across the globe that they wish to
start selling our services to their clients during the next
financial year.
In the financial year ending 30 June 2018, the EMEA division
signed 43 new contracts (2017: 20) of which 63% were via our
channel partners.
Of particular note, the Company is pleased to announce two
recent contracts wins in Europe. This includes our first Nordic
contract and a contract with a significant UK utility provider,
with an aggregate RAV of GBP97,000 for a minimum three years. The
Nordic contract is with one of the region's railways which
transports 47 million passengers annually and has revenues
exceeding GBP660 million per annum. The leading utilities provider
is part of one of the UKs largest electricity groups.
Pipeline:
Our pipeline of qualified sales opportunities continues to grow
across all our targeted regions and with the total contract values
standing at GBP22.4m this has more than doubled since 31 December
2017 (GBP10.5m).
Of particular interest is that we have reached terms for
delivering a very significant contract, via a partner reseller,
with a major contact centre in the UK for which we have already
received a payment for Phase 1 of this complex and difficult
project. We have also agreed terms with a major European insurance
company as well as received verbal confirmation from our first
important Spanish customer.
Commenting on the trading update and contract wins, William
Catchpole, Chief Executive Officer, said:
"I am pleased with the progress that the business is making in
what has been a very busy year.
"We have formally opened our US operations and our team there
has had a great start to developing our PCI compliant offering in
that region, winning some prestigious partners during the period.
Having under-pinned the North American operation with a GBP3.9m
fund raising in January 2018, I am confident that the region will
continue to develop substantially for us over the coming years.
"We have formally launched our new platform and the interest in
the market this launch has generated has been very pleasing. We are
attracting potential partners of the highest calibre from around
the world.
"Our stated strategy is to focus on the channel sales route to
market, evolving away from our previous mainly direct sale route. I
am pleased at how quickly this evolution is happening albeit that
we are still learning the timelines of the contracting, testing and
go-live process.
"Working with channel partners around the world will inevitably
mean that revenue momentum may take time to build, but once
established we believe we will have access to a far greater market
opportunity than that available from direct sales alone. Despite
the time taken in on-boarding our PCI compliant solution into our
partners service offerings, it should mean we are looking at much
shorter go live times and this advantage will bear fruit in due
course. Hence, as the new business wins start to go live, we are
confident, based on our sizeable and growing pipeline, that we will
experience strong growth in revenues. This gives us great
confidence for the future.
"We will continue to invest in the stability and security of our
global cloud platform to support multi-national brands. We remain
confident in our strategy for the Group and in its delivery against
our growth plans over the next few years. We look forward with much
excitement as the business starts to gain momentum and scale. "
Notice of Results:
PCI Pal expects to announce its final results for the 12 months
ended 30 June 2018 in early September.
This announcement contains inside information for the purposes
of Article 7 of Regulation 596/2014.
For further information, please contact:
PCI-PAL PLC Via Walbrook PR
William Catchpole - Chief Executive
Officer
William Good - Chief Financial
Officer
finnCap (Nominated Adviser and
Broker) +44 (0) 20 7227 0500
Geoff Nash/Simon Hicks (Corporate
Finance)
Richard Chambers (Corporate Broking)
Walbrook PR +44 (0) 20 7933 8780
Tom Cooper/Paul Vann +44 (0) 797 122 1972
tom.cooper@walbrookpr.com
About PCI Pal:
PCI Pal is a Payment Card Industry-Data Security Standard ("PCI
DSS") Level 1 certified supplier of contact centre payment
solutions and services, with operations in Europe and North
America, enabling organisations to take customer payments securely
over the phone, and to de-risk their business from the threat of
data loss and cybercrime.
PCI Pal solutions have been procured by more than 70
organisations, many of which are global businesses in the retail,
services, and utilities sectors, thereby ensuring they meet
industry rules and regulations governing customer data
protection.
To understand our core services better please view our video on
https://www.pcipal.com/en/solutions/agent-assist/
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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