PCI-PAL PLC (AIM: PCIP), the global provider of secure payment solutions, announces a trading update for the six months to 31 December 2019.
The Board is pleased with the strong performance against key metrics in the first half of the year, in particular the growth in revenue which increased by over 70% year on year to more than £2.0m (2018: £1.2m). This illustrates the growing benefits of our SaaS-based revenue model as we recognise revenues from the accumulating Total Annual Contract Value (TACV1) of contracts signed to date. Our key metric of TACV grew 47% year on year to £5.0m at the end of H1 (2018: £3.4m).
The Group signed new contracts worldwide with a recurring Annual Contract Value (ACV2) of £1.2m in the period, a positive result considering the £1.3m ACV achieved in the same period last year included, at the time, the Company's two largest contracts ever signed totaling £0.9m ACV alone. Total Contract Value (TCV 3) of new customers signed in the period grew by 18% to £4.0m (2018: £3.4m).
The channel centric go-to-market strategy continues to drive volume of opportunities into the sales pipeline, with 82% of all new business contracts coming from partners. Additionally, we have further underlined our ability to win strategically important direct business, having announced in December 2019 the Group's second largest contract ever worth $566k ACV. This competitive win in the U.S. further demonstrated the value of our SaaS model as the first three years of contractual fees will be paid in advance and are expected to be invoiced within the current financial year.
The Group finished the period with cash of £1.48 million (30 June 2019: £1.49 million) and a net debt position of £0.02 million (30 June 2019: £1.49 million), with a further £1.25 million of loan facilities still available to draw.
Commenting on progress in the period, James Barham, Chief Executive Officer of PCI Pal, said:
"I am extremely pleased with the significant growth in revenue compared to the same period last year. This is not only testament to the proven SaaS revenue model driven by growth in TACV, but also the solid progress we have continued to make in improving the pace at which we complete customer implementations ("Time to Go Live") and therefore begin to recognise revenue.
"In the last six months we have continued to execute on our channel strategy as more of the partner arrangements we have put in place begin to produce new sales pipeline and customer contracts. Additionally, through the signing of the Group's second largest contract to date, we have proven again that enterprise organisations are looking to truly cloud-based solutions to secure their payments.
"Looking forward, the Board is confident that we will continue the momentum built in the first half against key metrics and that the Company's strategy and market positioning means it is well placed to continue the progress made in the last 12 months."
Notice of Results:
PCI Pal will announce its Interim Results in the week commencing 2 March 2020.
This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.
1 TACV is the total annual recurring revenue of all signed contracts, whether invoiced and included in deferred revenue or still to be deployed and/or invoiced
2 ACV is the contracted annual recurring licence revenue component of the contract
3 TCV is the total minimum value of the contract including all professional services and setup fees
For further information, please contact:
Via Walbrook PR
James Barham - Chief Executive Officer
William Good - Chief Financial Officer
finnCap (Nominated Adviser and Broker)
+44 (0) 20 7227 0500
Marc Milmo/Simon Hicks (Corporate Finance)
Richard Chambers (Corporate Broking)
+44 (0) 20 7933 8780
Tom Cooper/Paul Vann
+44 (0) 797 122 1972
About PCI Pal:
PCI Pal is a provider of secure payment solutions for contact centres and businesses taking Cardholder Not Present (CNP) payments. PCI Pal's globally accessible cloud platform empowers organisations to take payments securely without bringing their environments into scope of PCI DSS and other card payment data security rules and regulations.
With the entire product portfolio served from PCI Pal's cloud environment, integrations with existing telephony, payment, and desktop environments are light-touch, ensuring no degradation of service while achieving security and compliance.