PCI-PAL PLC (AIM: PCIP), the global cloud provider of secure payment solutions for business communications, announces a trading update for the year ending 30 June 2021 (the "Period") and repayment of its outstanding debt facilities.
The Board is pleased to announce that the positive trading momentum since the end of Q3 has continued, such that revenues for the full year are expected to be at least 5% ahead of current market expectations1, which will result in an increase year on year of approximately 60%. As a result, the Adjusted Loss before Tax2 for the Period is expected to be approximately 5% less than market expectations. The Group's new sales bookings continue to be in line with management expectations for the year, even after the adverse movement of the US dollar exchange rate, thereby maintaining the Company's strong momentum going into FY22.
The Company has continued to generate cash from its trading activities ahead of management expectations. As a result, and following the recent placing, the Board has taken the decision to accelerate the repayment schedule of its outstanding debt of £1.7 million prior to the end of the current financial year. There is no early settlement penalty for early repayment, and it will result in an interest saving of approximately £0.1 million in FY22. Under the original repayment terms of the loan, the debt would have been repaid in full by September 2022 and therefore this action will have no impact of the Company's planned international expansion which was outlined at the time of the successful equity raise in April 2021.
The Group's channel-first sales approach continues to progress, and partners are expected to generate approximately 75% of new sales in the year. Q4 highlights to date include an expansion of our existing partner relationship with Genesys, one of the largest technology suppliers to contact centres worldwide. PCI Pal products are now available natively within Genesys Cloud products as a premium partner on the Genesys AppFoundry globally. https://www.pcipal.com/knowledge-centre/resource/pci-pal-solutions-now-available-as-a-premium-app-on-genesys-appfoundry/
The Group has also continued to grow its partner eco-system in the segment of Business Process Outsourcers ("BPO"), by signing one of the largest BPOs in the world, which included that partner's first sale of PCI Pal's Agent Assist solution to a US based energy company. This adds to the growing number of leading BPO providers that have selected PCI Pal for their global secure payment needs.
The Company will issue a year end trading update with further details and key metrics in the third week of July 2021.
Commenting on trading, James Barham, Chief Executive Officer of PCI Pal, said:
"We're delighted to be able to confirm continued strong trading in Q4, with significant progress against all key strategic initiatives.
"We are at a very exciting point in our growth story. The recent news of our targeted partner eco-system expansion, further supports our vision to be the leading provider of secure payment services for business communications worldwide."
1 Current market expectations for the financial year ending 30 June 2021 provided by finnCap Ltd is Revenue £6.70 million and Adjusted loss before tax of (£3.80 million)
2 The expected Adjusted Loss before Tax is stated before any currency gains and losses charged to the profit and loss and any costs relating to share option schemes.
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 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.
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.