Payment provider SafeCharge published a Pre-close trading update 

safecharge - large

Pre-close trading update

SafeCharge (AIM:SCH), the global provider of payments services, technologies and risk management solutions for online and mobile businesses, provides the following update as it enters its closed period ahead of announcing its results for the year ended 31 December 2016.

The Group generated record transaction processing volumes and revenues during Q4 following management’s focus on winning Tier 1 customers, including PaddyPower Betfair, Sun Bingo, Sisal and Nayax, all of which were launched in the second half. This outstanding performance followed a quieter Q3.

Management expects to report 2016 Adjusted EBITDA* in the range of US$33m – US$34m (approximately US$34.5 – US$35.5m on a constant currency basis**).

The Board reiterates its expectation that the full year dividend will total 75% of Adjusted EBITDA* for the period. Management expects to report that the Group closed the year with more than US$124m of cash and short term investments and continues to be debt-free.

During 2016 the Group committed substantial resources to its business in response to:

  • anticipated changes in its regulatory and commercial environment
  • evolving customer requirements; and
  • its strategy to develop sustainably high quality, low risk revenues from a diversified customer base.

The Company has successfully attracted high quality senior managers from well-established businesses in the payments sector to meet the changing requirements of current and future customers in new sectors and geographies. These new team members are helping the Group win sustainable, high quality business in both existing and target commercial e-commerce verticals and geographies.
This activity included reshaping its customer base, diversifying into new sectors and geographic markets; and making its first moves into card-present and land-based payments acquiring.

The Group’s businesses are already seeing the benefits of its strategy and investment, with further Tier 1 wins in core sectors; new and growing customers in Romania, Italy and Portugal; the on-going global roll-out of the Company’s first airline customer; and the Group’s first card-present customers driving substantial daily transaction volumes through SafeCharge’s payments and acquiring platforms.

SafeCharge’s Chief Executive, David Avgi, said:

“Since listing the Group nearly three years ago we have rapidly developed the scope and scale of our business, enabling us to start 2017 with the ability – and appetite – to aggressively compete for a greater share of Tier 1 customers across multiple e-commerce verticals and geographic markets. 

“At the same time as achieving a strong financial performance, including paying substantial dividends to shareholders, we have maintained an acute awareness of what it will take to continue being successful as our markets evolve and customer needs change.

“I am excited by the challenges and valuable opportunities ahead of us and believe that we are ideally positioned to sustainably grow the business.”

The Company remains confident that its focus on higher quality earnings from its healthy pipeline will yield continued revenue growth during 2017, building profitable momentum into 2018.

*Adjusted EBITDA is calculated after adding back certain non-cash charges and cash expenses including professional costs in relation to acquisitions, restructuring costs and terminated projects.

** Results stated on a constant currency basis, a non-IFRS measure, are calculated by applying the average exchange rate of the comparable period in the prior year to current period local currency results.

Source: SafeCharge

Leave a Comment

Broker Cyprus TopFX