SafeCharge sees revenue improving in H1
Payments services and technologies provider SafeCharge International Group Ltd (LON:SCH) has announced its financial results for the first six months of 2017, which were a period of solid performance and delivery for the group.
Transaction volumes continue to grow with very strong growth in the value of transactions processed through SafeCharge Acquiring. During the period, the group successfully launched a fully serviced global payment solution to Tier 1 customers and it has a strong sales pipeline, although the revenue growth to maturity from these long-term Tier 1 clients is taking slightly longer than anticipated. The company continues to generate significant free cash flow, which is being returned to shareholders through the company’s dividend.
As far as outlook goes, SafeCharge stated that it has enjoyed a strong start to the second half of 2017 benefiting from the launch of new clients, many of whom had started processing on the company’s global acquiring platform by the end of the first half of the year. The Board remains confident that the outcome for the year will be broadly in line with market expectations, and the Directors look forward with confidence to the rest of 2017 and beyond.
The value of transactions increased by 7 percent to $4.2 billion in H1 2017 as compared to $3.95 billion in H1 of 2016. Revenues also increased by 2 percent to $53 million during the period. The results are primarily due to a reshaping of the existing customer base during the past year. The quality of revenues contributed $4.6 million in the comparative period.
Gross profits dipped 4 percent to $30.4 million. The number also affected the adjusted EBITDA figure, which fell by 7 percent to $15.6 million during H1 2017. Again, this dip in profit and EBITDA was due to the reshaping of the existing customer base, Safecharge reported.
The interim divided per share that was recommended was 7.69 cents which was 10 percent more than what it was in H1 2016.
David Avgi, CEO of SafeCharge, commented on the results: “The Company has performed well and made positive progress with the implementation of its organic growth strategy and focus on delivering high quality revenue. We continue to invest in our payment and risk platform to drive future growth and are delighted that our customers recognise the benefits that SafeCharge’s payments solutions bring to them.”