Results for the year ended 30 June 2021 Analyst Briefing & Investor Presentation

Substantial increase in revenues and continued strong new business momentum

PCI-PAL PLC (AIM: PCIP), the global provider of secure payment solutions, is pleased to announce full year results for the year ended 30 June 2021 (the "Period").

Financial Highlights

• Revenue increased by 67% to £7.36 million (2020: £4.40 million)
• Gross margin increased to 76% (2020: 69%) reflecting the continuing transition of our service delivery mix to the higher margin, cloud based Amazon Web Services (“AWS”) platform
• Significant increase in new sales bookings leading to signed recurring Annual Contract Value (“ACV”) increasing by 19% to £3.11 million (2020: £2.62 million)
• Total contracted recurring ACV (“TACV¹”) increased 41% to £9.51 million at 30 June 2021 (2020: £6.75 million)
• Deferred income increased 79% to £8.09 million (2020: £4.53 million)
• Loss before Tax in line with expectations at £4.19 million (2020: £4.35 million) following continued investment in our growth plans and a £0.55 million foreign exchange loss in the period (2020: Foreign exchange gain of £0.02 million)
• Raised £5.18 million net of expenses to fund further expansion into Canada, Australia and mainland Europe in April 2021 to grow the Group’s addressable market by 40%
• Cash balances at year end of £7.52 million (2020: £4.30 million) and the Group is debt free having repaid its debt facility prior to the period end (2020: drawn down debt of £1.27 million)

Operating and Other Highlights

• North American momentum continues to build, with revenue up 279% and new ACV sales up 29%.  North America now accounts for 26% of the Group revenue (2020: 10%)
• Recurring revenue model proven with record full year on year revenue growth, recurring revenues now stand at 88% of all revenue (2020: 84%)
• Signed 195 new sales contracts in the year (2020: 109)
• A further 121 new contracts live with our services in the period
• Time to go live of new contracts signed in the last 18 months from the date of signature to deployment (“TTGL”) was consistent with the prior year at around 5 months average across all sales channels
• 78% of new sales contracts for the Group generated from channel partners (2020: 78%)
• Formed the PCI Pal Advisory Committee (“PAC”) which included the committee’s first member, payments and cyber-security specialist, Neira Jones.
• Completed planned hiring of new Chief Technology Officer (“CTO”) with cloud and payments technology leader, Mufti Monim, joining the business in April 2021.

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 not yet invoiced

Current Trading

• Strong start to new financial year with new ACV in line with management expectations. 
• Sales highlights since year end:
  • Two sizeable contracts won through resellers in the US:
  • the first providing our Agent Assist services to a well-known NASDAQ-listed hosting provider covering contact centres in US and UK;
  • the second through a new reseller, at whom we displaced one of our main competitors as their PCI solution of choice, to win our first deal with a major LATAM-focused energy provider leveraging our services through our recently announced improved product offering with Genesys.
  • Continuing to build on our government sector strength in the UK, with a further large council based in Wales.
• Signed a new reseller partnership with a multi-national German headquartered technology provider and BPO which has included the partnership’s first new customer.
• Added two new members to the PCI Pal Advisory Committee, both US-based, experienced product and engineering executive, Jayesh Patel who was formerly Chief Product Office at Vonage Inc, and Emilia D’Anzica, a customer success executive and consultant.

Board Change

• PCI Pal today announces that after 24 years with PCI Pal and its former businesses, Geoff Forsyth, Chief Information Security Officer (CISO) and current executive director, has informed the Board of his intention to step down from the Board at the Company’s upcoming AGM.  He will continue in his role as CISO for the Company, serving on the Company’s management team, as he works towards retirement which is expected to be in the next 24 months.

Commenting on results and prospects, James Barham, Chief Executive said:

“We have taken another sizeable step forward in FY21. Our advanced cloud capabilities have allowed us to continue to grow our customer reach through our expanding partner eco-system, serving customers not only in our primary geographic focus areas, but across the world. 

“With our key sales metric of TACV having grown by a further 41% year-on-year, I have been particularly pleased to see a real cohesion in the business this year, as despite a near doubling in new contracts won, we have maintained a strong deployment performance of customers going live in the year. 

“I am delighted by the continued growth being shown by the business as we deliver against our strategy.  We have therefore continued to make positive, progressive changes internally as we further refine our operations to best support our pace of growth.  As well as the further geographic expansion planned in FY22, we are hugely excited by the additional foundational strength we are putting in place across Customer Success, Engineering, and Product Management. 

“I am looking forward with confidence as we look to deliver another strong year of performance from the Group in FY22 as we further cement our relationships with our current and future partners, and drive customer go-lives of our class-leading cloud solutions with organisations across the world.”

Analyst Briefing: 9.30am on Monday 6 September 2021 

An online briefing for Analysts will be hosted by James Barham, Chief Executive, and William Good, Chief Financial Officer, at 9.30am today, Monday 6 September 2021, to review the results and prospects. Analysts wishing to attend should contact Walbrook PR on [email protected] or 020 7933 8780.

Investor Presentation: 4.00pm on Wednesday 8 September 2021

The Directors will hold an investor presentation to cover the results and prospects at 4.00pm (UK time) on Wednesday 8 September 2021.

The presentation will be hosted through the digital platform Investor Meet Company. Investors can sign up to Investor Meet Company and add to meet PCI-PAL PLC via the following link https://www.investormeetcompany.com/pci-pal-plc/register-investor. For those investors who have already registered and added to meet the Company, they will automatically be invited. 

Questions can be submitted pre-event to [email protected] or in real time during the presentation via the "Ask a Question" function. 

For further information, please contact:

About PCI Pal:

PCI Pal is a leading provider of Software-as-a-Service (“SaaS”) solutions that empower companies to take payments from their customers securely, adhere to strict industry governance, and remove their business from the significant risks posed by non-compliance and data loss.  Our products secure payments and data in any business communications environment including voice, chat, social, email, and contact centre.  We are integrated to, and resold by, some of the worlds’ leading business communications vendors, as well as major payment service providers. 

The entirety of our product-base is available from our global cloud platform hosted in Amazon Web Services (“AWS”), with regional instances across EMEA, North America, and ANZ.  PCI Pal products can be used by any size organisation globally, and we are proud to work with some of the largest and most respected brands in the world.

For more information visit www.pcipal.com or follow the team on Linkedin:

https://www.linkedin.com/company/pci-pal/

This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.