Strong Growth with Record New Business
PCI-PAL PLC (AIM: PCIP), the global provider of secure payment solutions for business communications, is pleased to announce full year results for the year ended 30 June 2023 (the "period").
| Download These results are available to view and download in PDF format |
Financial Highlights:
| FY23 30 June 2023 | FY22 30 June 2022 | Change | |
| Revenue | £14.95m | £11.94m | +25% |
| Gross Margin % | 88% | 84% | |
| % of revenues from recurring contracts | 86% | 89% | |
| Adjusted EBITDA1 loss | (£1.11m) | (£1.88m) | +41% |
| Adjusted PBT2 loss | (£2.31m) | (£2.90m) | +20% |
| Loss before Tax | (£4.89m) | (£3.11m) | -57% |
| New ACV3 contract sales in period | £4.16m | £3.46m | +20% |
| TACV4 | £16.43m | £13.36m | +23% |
| ARR5 | £12.58m | £11.05m | +14% |
| NRR6 | 103.0% | 117.7% | |
| Customer retention7 | 95.4% | 96.9% | |
| Cash and available resources (incl maximum debt headroom)8 | £4.17m | £4.89m |
Operating and Other Highlights:
- Continued strong momentum in key US market, with £2.5m new business ACV won in the year representing 61% of new business for the Group.
- New business momentum emphasised by 48% year on year increase in net new logo sales.
- Strength of partner eco-system illustrated by further increase in contract value signed through resellers, now making up 77% of ACV signed (2022: 62%).
- 241 new sales contracts signed in the period (2022: 217), average ARR value increased 14% to £17,000. (2022: £15,000) reflecting PCI Pal’s increasing strength in the mid-market and enterprise space.
- High partner and customer satisfaction rates with 95% Gross Revenue Retention (“GRR”) across the year.
1 Adjusted EBITDA is the loss on Operating Activities before depreciation and amortisation, exchange movements charged to the profit and loss, exceptional items and expenses relating to share option charges
2 Adjusted PBT is the Loss before Tax before exchange movements charged to the profit and loss, exceptional items and expenses relating to share option charges
3ACV is the annual recurring revenue generated from a contract.
4 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.
5 ARR is Annual Recurring Revenue of all the deployed contracts at the period end expressed in GBP.
6 NRR is the net retention rate of the contracts that are live on the AWS platform rate and is calculated using the opening total value of deployed contracts 12 months ago less the ACV of lost deployed contracts in the last 12 months plus the ACV of upsold contracts signed in the last 12 months all divided by the opening total value of deployed contracts at the start of the 12 month period.
7 Customer retention is calculated using the formula: 100% minus (the ACV of lost deployed contracts on the AWS platform in the last 12 months divided by the opening total value of deployed contracts 12 months ago expressed as a percentage).
8Cash balance plus maximum debt facilities available (subject to covenant tests being met)
Current Trading:
- PCI Pal is well-positioned to deliver the key financial milestones expected this year whilst driving continued growth momentum and new product development.
- As announced on 25 September 2023, in the UK the Company comprehensively defeated the unfounded patent infringement law suit brought by one of its competitors, with the judge ruling resoundingly in PCI Pal’s favour on all counts. PCI Pal now seeking maximum cost recovery.
- Sales highlights since year end:
- A number of new enterprise customers signed in key US market, including a Fortune 50 home goods retailer; and a FTSE100 electrical goods company signed via their US subsidiary.
- An exciting new partnership with a major telco in New Zealand which has immediately produced the relationship’s first customer, a central government agency in the region.
- New business ACV to date is 11% ahead of the same period in prior year with strong near term sales pipeline which includes a number of major new customer and partnership opportunities.
Commenting, James Barham, Chief Executive Officer, said:
“We’ve delivered another strong year. Revenues have grown strongly, we have accelerated new business sales, particularly in our key US region, and overall losses matched expectations. During the year we have proven that our global, cloud based SaaS platform appeals to the entire breadth of our addressable market, from the very smallest companies, to large enterprise, and this capability has been a key component to our growth trajectory. To have achieved this while challenged by a number of headwinds is thanks to our people and the team we have built.
“Since we set out on this current phase of our plans, FY24 has always been slated as the first year of full Group profitability. No doubt the headwinds have made this a more challenging ambition, and with anticipated revenue growth rates of 28-30% in the coming year, we believe the business is well positioned to achieve our profitability milestone. We will continue to build on the foundations we have established in the last five years to take this business to the next level.
“It’s an exciting time at PCI Pal. With a strong near-term sales pipeline, regular planned new product releases on the horizon, and supported by the strongest partner eco-system in our market, we can look forward to driving further growth in FY24.”
Analyst Briefing: 9:30am today, Thursday 09 November 2023
An online briefing for Analysts will be hosted by James Barham, Chief Executive Officer, and William Good, Chief Financial Officer, at 9.30am on today, Thursday 09 November 2023 to review the results and prospects. Analysts wishing to attend should contact Walbrook PR on [email protected] or 020 7933 8780.
Investor Presentation: 12:00pm on Tuesday 14 November 2023 (UK time)
The Directors will hold an investor presentation to cover the results and prospects at 12.00pm on Tuesday 14 November 2023 (UK time).
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:
| PCI-PAL PLC | Via Walbrook PR |
| James Barham - Chief Executive Officer William Good - Chief Financial Officer | |
| Cavendish Securities plc (Nominated Adviser and Broker) | +44 (0) 20 7227 0500 |
| Marc Milmo/Simon Hicks (Corporate Finance) Sunila De Silva (Corporate Broking) | |
| Walbrook PR | +44 (0) 20 7933 8780 |
| Tom Cooper/Nick Rome/Joe Walker | +44 (0) 797 122 1972 |
| [email protected] |
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. For more information visit www.pcipal.com or follow the team on Linkedin: https://www.linkedin.com/company/pci-pal/
