REG - PCI-PAL PLC - Interim Results, Analyst Briefing & Investor Pres
04/03/2025 07:15
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RNS Number : 1847Z PCI-PAL PLC 04 March 2025
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the company's obligations under Article 17 of
MAR.
4 March 2025
PCI-PAL PLC
("PCI Pal" or "the Group" or "the Company")
Interim Results for the six months to 31 December 2024
Analyst Briefing & Investor Presentation
PCI-PAL PLC (AIM: PCIP), the global cloud provider of secure payment solutions
for business communications, is pleased to announce its unaudited interim
results for the six months to 31 December 2024 (the "Period" or "H1").
Financial highlights for the Period
As restated*
H1 FY25 ending 31 December 2024 H1 FY24 ending 31 December 2023
Change
Revenue £10.57m £8.42m +26%
Gross Margin % 90% 89% +100 bp
% of revenues from recurring contracts 91% 89% +200 bp
Adjusted EBITDA(1) profit / (loss) £0.95m (£0.07m) +1,450%
Adjusted profit/(loss) from operating activities(2) £0.18m (£0.73m) +124%
Adjusted profit/(loss) before tax(2) £0.20m (£0.78m) +125%
ARR(3) £16.75m £13.83m +21%
TACV(4) £20.30m £17.46m +16%
New ACV(5) contract sales in Period £1.91m £1.60m +19%
NRR(6) 102% 102%
GRR(7) 95% 96% -100bp
* As restated, see note 7 for further details.
Operating highlights in the Period
· Exit run rate ARR at the end of the Period increased 21% to
£16.8 million
· Record H1 new business sales at £1.9 million, up 19%
· Adjusted EBITDA of £0.95 million and Adjusted profit from
operating activities of £0.18 million
· Expansion of partner eco-system in Period with signing of new
strategic partnership with RingCentral, Inc
· Successful renewal of large UK government contract worth £5m
over initial three year period, with option to extend for further three years
· Continued exceptional performance of public cloud platform with
uptime exceeding 99.999% and now providing services to over 700 customers
globally
· Progress with product roadmap with first in-app AI capabilities
amongst other features expected to be launched later in CY25
· Successful competitor displacement with enterprise contract win
in UK with FTSE250 company
· New CFO on-boarded, continued strong cohesion of PCI Pal
leadership team, and excellent corporate culture with high people retention
· New PCI Pal Advisory Committee member added, Tamzyn Furse, an
experienced Chief People Officer with experience in growing exceptional teams
in fast growing international technology companies.
(1) Adjusted EBITDA is the loss on Statutory Operating Activities before
depreciation and amortisation, exchange movements charged to the profit and
loss, exceptional items, non-operational costs and expenses relating to share
option charges.
(2) Adjusted for exchange movements charged to the profit and loss, exceptional items, non-operational costs and expenses relating to share option charges.
(3) ARR is the Annual Recurring Revenue of all the deployed contracts.
(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) ACV is the annual recurring revenue generated from a contract.
(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) AWS platform Gross Retention Rate is calculated using the ACV of retained,
deployed contracts from twelve months ago divided by the opening total value
of deployed contracts at the start of the twelve month period
Current trading & Outlook
The new business sales momentum in H1 has continued into H2 with ACV to end of
February 2025 now at £2.7 million with the Company's sales pipeline growing
with the addition of a number of new strategic partners this year.
Deployments remain the key driver for revenue recognition of those services
that have been sold and contracted to date in order to deliver management's
full year revenue and closing ARR run rate expectations. We remain focused
on continuing the operational progress we have made to date to reduce the
Company's time to revenue for those newly signed customer projects yet to
reach revenue recognition.
As we continue to execute against our near-term objectives, we are also
looking ahead to the strategic opportunity for the business given the sizeable
addressable market. This includes expanding our international footprint,
with our first hires in mainland Europe expected later this financial year;
expanding our product suite with adjacent products to drive new revenue
streams; and increasing our awareness of selective M&A opportunities that
would complement our organic growth strategy and drive further value to
shareholders either through earnings enhancement or accelerated adjacent
product opportunities.
Commenting on the results for the Period and prospects, James Barham, Chief
Executive Officer said:
"I am pleased with our execution in H1 with highlights being the strong
momentum in new business sales, the expansion of our market-leading partner
eco-system, and solid progress against our product roadmap objectives for the
year. We have built up an excellent market position as the leading cloud
provider in our space, and we intend to capitalise on this to take advantage
of the sizeable addressable market opportunity ahead.
"Organic growth at greater scale requires investment, and we intend to
prudently utilise the profitability of the Group to drive continued long term
growth momentum, whilst also continuing to consider inorganic growth
opportunities.
"The Board remains confident in the Company's prospects and is keenly focused
on delivering the Group's near-term objectives whilst also strategically
looking ahead to the next 3-5 years and the opportunity to scale the business
further, utilising the strong foundations we have built to date."
Analyst Briefing: 9.30am today, Tuesday 4 March 2025
An online briefing for Analysts will be hosted by James Barham, Chief
Executive, and Ryan Murray, Chief Financial Officer, at 9.30am today Tuesday 4
March 2025, to review the results and prospects. Analysts wishing to attend
should contact Walbrook PR on pcipal@walbrookpr.com
(mailto:pcipal@walbrookpr.com) or 020 7933 8780.
Investor Presentation: 3.00pm on Thursday 6 March 2025 (UK time)
The Directors will hold an investor presentation to cover the results and
prospects at 3.00pm on Thursday 6 March 2025 (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
(https://urldefense.proofpoint.com/v2/url?u=https-3A__www.investormeetcompany.com_pci-2Dpal-2Dplc_register-2Dinvestor&d=DwMGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=05PHl3GHdShYuaCii2fBRpoqaNr9B1d97X09daeosu0&m=2cbaZ6I4laLZbM7rmMgwZbEMeL2NX7hkjIpg7mqgo34&s=pwrBTMxZzny86eeBmluEYAAy3krXblozKaNUaPXNO7s&e=)
. 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 pcipal@walbrookpr.com
(mailto:pcipal@walbrookpr.com) 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
Ryan Murray - Chief Financial Officer
Cavendish Capital Markets Limited (Nominated Adviser and Broker) +44 (0) 20 7227 0500
Marc Milmo/Fergus Sullivan/Finn Gordon (Corporate Finance)
Sunila De Silva (Corporate Broking)
Walbrook PR +44 (0) 20 7933 8780
Tom Cooper/Nick Rome +44 (0) 797 122 1972
tom.cooper@walbrookpr.com
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 environments 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 (http://www.pcipal.com) or follow
the team on Linkedin: https://www.linkedin.com/company/pci-pal/
(https://www.linkedin.com/company/pci-pal/)
Chief Executive Officer's Business Review
Overview
I am pleased to report a solid first half to the financial year, with
highlights including a record H1 for new business sales, a year-on-year ARR
increase of 21%, and the Company's first H1 reporting full Group adjusted
profit before tax.
Group revenues for the Period were 26% ahead of the restated prior year at
£10.6 million (H1 FY24: £8.4 million). The underlying Normalised(*)
revenue growth was 13%. Recurring revenues made up 91% of Group revenue
(2023: 89%).
Importantly, the key growth metric of exit run rate ARR increased 21% to
£16.8 million compared to the same period last year (H1 FY24: £13.8
million). This continued growth reflects the accumulation of new business
sales and increasing momentum of these contracts reaching revenue recognition
as deployments occur.
Underpinning revenue growth, and reflecting the Company's high service levels
and robust customer and partner relationships, is continued strong customer
retention with GRR for the Period at 95% (H1 FY24: 96%). NRR was in line
with expectations and the prior year period at 102% (H1 FY24:102%). Given the
Company's strength in retaining customers, we see a significant opportunity to
drive cross-sell and upsell and therefore increase the Group's NRR going
forward.
In line with management expectations, the Group was profitable with Adjusted
Profit Before Tax of £0.2m. Cash remained stable even with continued
investment in the business for growth.
(*)Normalised revenue growth is calculated by excluding the revenue recognised
in the Period that was subsequently deferred from FY24 to FY25.
New Business Sales
The Company achieved a record H1 with new business ACV 19% ahead of the same
period last year at £1.9m (H1 FY24: £1.6 million). We continue to be
encouraged by the mix of new business sales that we are seeing across the
business. We achieved strong month to month run-rate new business sales
spanning commercial and mid-market deals, from the smaller £10k ACV contracts
up to £100k ACV in value. On top of this important run rate, we are adding
new enterprise deals with contact centres, many of which exceed 1,000 agent
seats in size. This mix underscores PCI Pal's capability to service the
breadth of our market which is important to allow us to address the entire
contact centre market globally.
PCI Pal's strength in serving enterprise contact centres has grown
substantially in the last five years. Today we have an enviable enterprise
customer-base, supporting enterprise organisations that have now transitioned
to the cloud. We were very pleased to successfully secure the renewal of one
of our largest customers, the UK Government Department for Work and Pensions
("DWP"), which is one of the largest contact centres in Europe. The contract
is initially worth over £5.0 million across an initial three-year term and
includes the option for the DWP to renew for up to a further three years at
the end of the initial period on the same commercial terms.
In the first half of the year we saw good growth in our sales pipeline through
a combination of partner and direct sourced opportunities, providing a
positive backdrop for H2. The increased number of enterprise deals in our
pipeline is notable. Whilst these deals are less numerous and more difficult
to predict in terms of timing, when layered onto PCI Pal's consistently strong
run rate of commercial and mid-market deals, they provide a substantial growth
opportunity for the Company.
At end of the Period, the Total Annual Contract Value ("TACV") of all
customers contracted, whether at the stage of revenue recognition (ARR) or
not, stood at £20.3m which is 16% greater than the same period in the prior
year (2023: £17.5m).
Partner Eco-system
In the last five years, the Company has been successful in executing against
its strategy to be the secure payment provider of choice to the world's
leading business communications vendors. Today, PCI Pal's market leading
partner eco-system consistently delivers more than 70% of the Company's new
customers each year. The eco-system includes integrated reseller and OEM
relationships with the majority of the leading names in the cloud
communications market globally such as Genesys, Zoom, RingCentral, Talkdesk,
8x8, and Amazon.
In H1, 75% of new logo customers came from partners making up 77% of the new
ACV value signed in the Period. FY25 includes the introduction of three new
strategic partnerships, the first with Zoom, which as previously announced
launched in late Q4FY24, and represents an exciting long term opportunity as
Zoom expand their unified communications and video business into the CCaaS
market. The second is an extension to our marketplace partnership with Five9
Inc which now includes a repeatable integration to their CCaaS platform and
improved levels of engagement with their sales teams in North America. The
third is RingCentral who with 6,000 employees globally is another major vendor
in the UCaaS and CCaaS market with its AI-powered cloud communications
suite.
PCI Pal was selected by RingCentral's product team in Q1FY25 and the
integrated partnership is expected for launch imminently across North America
and Europe regions, with ROW expected thereafter. Sales enablement is now
fully underway with sales pipeline building and there is strong peer to peer
collaboration across both organisations. We look forward to updating
investors further on this important new partner as the launch progresses.
PCI Pal's agnostic approach to the business communications space, supported by
our patented innovation around voice integrations, has allowed us to be the
provider of choice for these international vendors.
Conversational AI Partner Update:
Conversational AI is providing businesses with an alternative option to human
contact centre agents, with AI chat and voice bots now beginning to be used in
customer engagements. Bots are becoming an alternative to human agents for
more basic or generic tasks, while human agents become more specialised on
more complex tasks. At PCI Pal we have been proactive in aligning ourselves
with this new category of technology partners who have a need for our
services. Our partners in the space include PolyAI and Converse360 as well
as a number of CCaaS partner's own conversational AI solutions.
Whilst there are very few payments handled across voice or chat bot customer
interactions today, we expect there to be an increase over time as the
technology advances and the adoption of AI as a customer experience ("CX")
strategy within organisations gathers more momentum. The conversational AI
space is relatively immature with a high number of earlier stage vendors and a
smaller number of larger, more mature providers. In keeping with our
strategic approach to reseller partnerships in general, we are taking a
proactive but targeted approach to vendors in the space that we aim to align
ourselves with.
We have been working on a number of projects which are going through solution
design and testing for integration with a number of conversational AI vendors
who we expect to add to our reseller community in the near term. We are also
working with existing CCaaS partners who themselves have their own
conversational AI solutions that we are integrating to and that will be
incorporated commercially into their existing reseller agreements with us.
Running in tandem with these specific project efforts, we expect to launch a
chat and voice bot API in H2 which will provide future conversational AI
partners with a generic and simple way to integrate PCI Pal's secure payment
capabilities into their own conversational flows. By utilising PCI Pal
services, these AI providers are able to fully de-scope their own networks
from handling sensitive payment data, whilst also gaining valuable access to
PCI Pal's extensive range of payment provider integrations which today is more
than 120 organisations.
Platform & Product Update
The investment we have made in the last few years, to expand the Company's
engineering function to be more in line with peer group SaaS technology
companies, is paying off. Today we not only have the most mature public
cloud platform in our market having been first to market in 2017, but also an
extensive customer-base with over 700 organisations utilising its capabilities
across numerous regional instances in AWS across North America, Europe, and
ANZ.
In the Period we made good progress in rolling out a standardisation
enhancement to our secure payment products to key partners. This
standardisation approach is applied to SMB customers using a feature-rich
standardised version of our products to facilitate more out-of-the-box
deployments, which is only now possible due to the product enhancements we
have made in prior years which provides for a more feature-rich standard
service offering. Larger scale deployments for enterprise customers are
afforded more customisation. Over the next 18 months we expect to see an
accelerated shift in Professional Services efforts in the business to focus
more on higher value, enterprise contracts, with the standardised approach
reducing the team's involvement on smaller contracts.
In terms of new products and features, we have progressed development work on
new features to our core products leveraging our own AI capabilities. In the
Period we have made further progress in consolidating our data backbone which
will enable these AI capabilities for which data access is absolutely
critical. The Company expects to launch the first of these AI product
features later in the calendar year. The benefits will include enhanced CX,
making our services even easier and more intuitive for customers to use;
improved agent experience, putting more power into the agent's hands to run
customer interactions in an optimal way; and increased data analytics
capabilities providing intelligence to our customers that we expect will allow
them to generate more revenue whilst cutting costs of processing customer
payments.
James Barham
Chief Executive Officer
4 March 2025
CFO's Financial Review
Our first half financial results demonstrate further progress in delivering
the Group's growth strategy.
Revenue and gross margin
Revenue for H1 increased 26% to £10.57 million (H1 FY24: £8.42 million
restated). The restatement reflects revenue that was recognised in the period
H1 FY24 that was subsequently reclassified as deferred income at the financial
year end. After excluding the revenue recognised in the current Period that
was deferred from the full year FY24 to FY25, the normalised revenue growth
was 13%.
Gross margin increased to 90% compared to 89% in the prior period, reflecting
continued focus on delivering high-quality recurring licence revenues from our
public cloud platform hosted in AWS. Of the revenues reported in the Period,
91% was recurring (H1 FY24: 89%).
Gross revenue retention rates continue to be high at 95% (H1 FY24: 96%) and in
line with management's expectations year to date. Net revenue retention (NRR),
which we report on a rolling 12-month basis, continued to be positive at 102%
(H1 FY24: 102%) as the Group upsells more contracts to existing customers.
Adjusted profitability and cash flow
In order to provide a meaningful financial comparison of how the business is
performing between periods, the Group measures adjusted EBITDA, adjusted
operating profit and adjusted operating cashflow which exclude items that
could distort the understanding between comparability periods.
A reconciliation of the underlying financial measures to statutory measures is
shown below:
Restated
£' 000 H1 FY25 H1 FY24
Loss from operating activities (309) (1,576)
Exceptional items - 635
Non-operational costs 346 -
Exchange movements 11 67
Share Option charge 127 139
Adjusted operating profit/(loss) 175 (735)
Depreciation and amortisation 774 665
Adjusted EBITDA 949 (70)
There were no exceptional items reported in the profit and loss in the first
half of the year. In the prior year, total exceptional items were £0.64
million which related to the patent case. A share-based payment charge of
£0.13 million was also recorded in the first half period and was broadly in
line with the prior year charge of £0.14m.
Non-operational costs in H1 FY25 includes software implementation expenditure,
which in line with IFRIC guidance on accounting for cloud implementation
costs, is expensed to the profit and loss, and other expenses incurred
evaluating corporate opportunities.
Restated
£' 000 H1 FY25 H1 FY24
Loss before tax (286) (1,625)
Exceptional items - 635
Non-operational costs 346 -
Exchange movements 11 67
Share Option charge 127 139
Adjusted Profit/(Loss) before tax 198 (784)
The Group delivered an adjusted profit before tax of £0.20 million in the
Period, compared to an adjusted loss before tax in the prior year
demonstrating the continued positive operational gearing level of the
business. Profitability will continue to be managed in line with required
investment for future growth.
Total administrative expenses were £9.78 million (H1 FY24: £9.06 million),
an increase of 8%. Included in this expenditure was capitalised software
development of £0.80 million (H1 FY24: £0.87 million) as well as the expense
of running our AWS global platform and associated software, which was £0.53
million in the Period (H1 FY24: £0.54 million).
Positive cash from operations of £0.35 million was generated in the Period
(H1 2024: £(0.20) million). After adjusting for exceptional and
non-operational costs, the Group delivered cash from operations of £0.98
million (H1 2024: £0.80 million). This has been achieved as a result of
solid revenue growth, operational delivery efficiencies and prudent cost
control. Adjusted free cash flow for the Period was £0.30m (H1 2024: £0.63
million). In the prior year, the free cash flow benefited from a R&D tax
refund of £0.54 million.
At the Period end, the Group held net cash of £4.00 million and continues to
have access to an undrawn £3.00 million debt facility with its bank HSBC.
Principal operational Key Performance Indicators
In addition to the financial Key Performance Indicators (KPIs), the following
operational KPI's are also monitored.
Restated %
£'000 H1 FY25 H1 FY24 Change
Annual Recurring Revenue (ARR) 16,754 13,826 21%
Projects in deployment 2,922 2,927
Projects on hold 621 705 -12%
TACV 20,297 17,457 16%
New ACV contracted sales in the Period 1,912 1,603 19%
AWS Gross Retention Rates 95% 96% -1%
AWS Platform Net Retention Rates 102% 102%
ARR has increased by 21% to £16.75 million. Additionally, there is £2.92
million of projects in deployment which should convert to ARR in the near
future. The deployment process is influenced by the availability of
resources of the end customer and technical work required from the channel
partner that is independent of our product, and over which PCI Pal has limited
influence. The value of projects on hold has reduced by 12% reflecting the
high quality of the services sold and as a percentage of TACV has decreased to
just 3% (H1 2024: 4%). This is a positive trend. Overall, all signed
contracts saw year-on-year growth of 16% to £20.3m.
Financial Outlook
The Group delivered a strong first half performance with the second half of
the financial year having started well. With continued robust demand for our
cloud platform adding to TACV, when deployed, this contributes to the Group's
growing recurring revenues. In line with stated objectives, investment will
continue in the business to take advantage of this which includes expanding
international growth, further capitalising on our partner eco-system, and
launching new complementary features and products to our partners and
customers. This is supported by the Group's cash generation and a strong
balance sheet.
Ryan Murray
Chief Financial Officer
4 March 2025
Consolidated statement of comprehensive income
for the six months ended 31 December 2024
As restated* Twelve months ended 30 June
Six months ended Six months ended 2024
31 December 31 December
2024 2023
£'000 £'000 £'000
(unaudited) (unaudited) (audited)
Revenue 10,575 8,419 17,960
Cost of sales (1,105) (940) (1,939)
Gross profit 9,470 7,479 16,021
Administrative expenses (9,779) (9,055) (17,683)
Loss from operating activities (309) (1,576) (1,662)
Finance income 58 10 32
Finance expenditure (33) (59) (84)
Loss before taxation (286) (1,625) (1,714)
Taxation (2) 535 535
Loss for the period (288) (1,090) (1,179)
Other comprehensive expense: items that will be classified subsequently to
profit and loss
Foreign exchange translation differences (24) 72 20
Total comprehensive loss for the period (312) (1,018) (1,159)
Loss per share expressed in pence
Basic and diluted (0.40) (1.67) (1.74)
*As restated, see note 7 for further details.
Consolidated statement of financial position
as at 31 December 2024
As restated*
31 December 2024 31 December 30 June
2023 2024
£'000 £'000 £'000
(unaudited) (unaudited) (audited)
Assets
Non-current assets
Intangible assets 4,179 3,491 4,097
Plant and equipment 110 148 118
Trade & other receivables 1,266 1,269 1,513
Non-current assets 5,555 4,908 5,728
Current assets
Trade and other receivables 5,142 5,159 5,456
Cash and cash equivalents 4,003 795 4,332
Current assets 9,145 5,954 9,788
Total assets 14,700 10,862 15,516
Liabilities
Current liabilities
Trade and other payables (2,951) (2,335) (3,067)
Deferred Income (12,232) (11,757) (12,620)
Other interest-bearing loans and borrowings - (250) -
Current liabilities (15,183) (14,342) (15,687)
Non-current liabilities
Other payables (114) - (83)
Deferred Income (1,442) (1,915) (1,716)
Long term borrowings - - -
Non-current liabilities (1,556) (1,915) (1,799)
Total liabilities (16,739) (16,257) (17,486)
Net assets/(liabilities) (2,039) (5,395) (1,970)
Shareholders' equity
Share capital 726 656 723
Share premium 17,737 14,287 17,624
Other reserve 1,350 1,061 1,223
Currency reserve (298) (222) (274)
Profit and loss account (21,554) (21,177) (21,266)
Total shareholders' equity (2,039) (5,395) (1,970)
*As restated, see note 7 for further details.
Deferred income has been disclosed separately in these interim unaudited
statements. This disclosure treatment differs from that in the audited
accounts for the year ending 30 June 2024.
Consolidated interim statement of changes in equity
as at 31 December 2024 (unaudited)
Total shareholders' equity
Share capital Share premium Other reserve Profit and loss account Currency reserve
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 July 2023 656 14,281 922 (19,674) (294) (4,109)
Impact of change - - - (413) - (413)
Balance at 1 July 2023 (as restated*) 656 14,281 922 (20,087) (294) (4,522)
Share based payment charge - - 139 - - 139
New shares issued net of costs - 6 - - - 6
Dividend paid - - - - - -
Transactions with owners - 6 139 - - 145
Foreign exchange translation differences - - - - 72 72
Loss for the period (as restated) - - - (1,090) - (1,090)
Total comprehensive loss - - - (1,090) 72 (1,018)
Balance at 31 December 2023 656 14,287 1,061 (21,177) (222) (5,395)
Balance as at 1 January 2024 656 14,287 1,061 (21,177) (222) (5,395)
Share based payment charge - - 162 - - 162
New shares issued net of costs 67 3,337 - - - 3,404
Dividend paid - - - - - -
Transactions with owners 67 3,337 162 - - 3,566
Foreign exchange translation differences - - - - (52) (52)
Loss for the period - - - (89) - (89)
Total comprehensive loss - - - (89) (52) (141)
Balance at 30 June 2024 723 17,624 1,223 (21,266) (274) (1,970)
Balance at 1 July 2024 723 17,624 1,223 (21,266) (274) (1,970)
Share based payment charge - - 127 - - 127
New shares issued net of costs 3 113 - - - 116
Dividend paid - - - - - -
Transactions with owners 3 113 127 - - 243
Foreign exchange translation differences - - - - (24) (24)
Loss for the period - - - (288) - (288)
Total comprehensive loss - - - (288) (24) (312)
Balance at 31 December 2024 726 17,737 1,350 (21,554) (298) (2,039)
*As restated, see note 7 for further details.
Consolidated statement of cash flows
for the six months ended 31 December 2024
As restated Twelve months ended 30 June
Six months ended 31 December Six months ended 31 December 2024
2024 2023
£'000 £'000 £'000
(unaudited) (unaudited) (audited)
Cash flows from operating activities
Loss after taxation (288) (1,090) (1,179)
Adjustments for:
Depreciation of equipment and fixtures 56 57 116
Amortisation of intangible assets 718 609 1,266
Loss on disposal of equipment and fixtures - - -
Interest income (58) (10) (32)
Interest expense 25 47 58
Exchange differences (24) 72 20
Income taxes 2 (535) (535)
Share based payments 127 139 301
Increase in trade & other receivables 562 515 (27)
Decrease in trade & other payables (767) (6) 1,329
Cash generated/(used) in operating activities 353 (202) 1,317
Dividend paid - - -
Income taxes received (2) 535 535
Interest paid (25) (47) (58)
Net cash generated in operating activities 326 286 1,794
Cash flows from investing activities
Purchase of property, plant and equipment (5) (20) (49)
Purchase of intangible assets - (10) (155)
Development expenditure capitalised (801) (874) (1,825)
Interest received 58 10 32
Net cash used in investing activities (748) (894) (1,997)
Cash flows from financing activities
Proceeds from borrowings - 1,000 1,000
Repayment of borrowings - (750) (1,000)
Principal element of lease payments (23) (22) (44)
Issue of shares 116 6 3,647
Costs relating to issue of shares - - (237)
Net cash generated in financing activities 93 234 3,366
Net (decrease)/increase in cash (329) (374) 3,163
Cash and cash equivalents at the start of the period 4,332 1,169 1,169
Net (decrease)/increase in cash (329) (374) 3,163
Cash and cash equivalents at the end of the period 4,003 795 4,332
*As restated, see note 7 for further details.
Notes to the interim financial statements for the six months ended 31 December 2024
1. Nature of activities and general information
PCI-PAL PLC is the Group's ultimate parent company. It is a public limited
company incorporated and domiciled in England and Wales (registration number
3869545). The company's registered office is Unit 7, Gamma Terrace, Ransomes
Europark, Ipswich, Suffolk, IP3 9FF. The Company's ordinary shares are quoted
and publicly traded on the AIM division of the London Stock Exchange. The
Group's consolidated interim financial statements (the "interim financial
statements") for the period ended 31 December 2024 comprise the Company and
its subsidiaries (the "Group").
The Company operates principally as a holding company. The main subsidiaries
provide organisations globally with secure cloud payment and data protection
solutions for any business communications environment.
The interim financial statements are presented in pounds sterling (£000),
which is also the functional currency of the parent company.
2. Basis of preparation
These consolidated interim financial statements have been prepared on a going
concern basis in conformity with the UK adopted international accounting
standards "IFRS's" and the requirements of the Companies Act 2006, using the
accounting policies which are consistent with those set out in the Group's
annual report and accounts for the year ended 30 June 2024.
The unaudited interim financial information for the period ended 31 December
2024 does not constitute statutory accounts within the meaning of Section 434
of the Companies Act 2006. The comparative figures for the year ended 30 June
2024 are extracted from the statutory financial statements which have been
filed with the Registrar of Companies and contain an unqualified audit report
and did not contain statements under Section 498 to 502 of the Companies Act
2006.
3. Dividends
The directors do not propose to declare a dividend for the Period.
4. Analysis of results
The first half performance of the Group can be further analysed as follows:
Six months to Six months to Six months to Six months to Six months to
Dec 24 Dec 24 Dec 24 Dec 24 Dec 24
EMEA North America ANZ Central costs Total
£000s £000s £000s £000s £000s
Revenue
Revenue from recurring contract Fees 5,530 3,872 211 - 9,613
Non recurring transaction Fees 297 - - - 297
Set up and Professional Services Fees ((1)) 368 272 25 - 665
Total 6,195 4,144 236 - 10,575
Gross Profit 5,130 4,107 233 - 9,470
Margin % 82.8% 99.1% 98.7% - 89.6%
Administrative Expenses (5,537) (2,891) (329) (676) (9,433)
Inter-company Royalty 1,079 (1,020) (59) - -
Non-operational costs (96) - - (250) (346)
Profit/(Loss) from Operating Activities 576 196 (155) (926) (309)
Bank charges and Interest payable (8) (3) - (24) (35)
Finance Income 6 14 - 38 58
Profit/ (Loss) before Taxation 574 207 (155) (912) (286)
((1)) Set up and Professional Services Fees represents the amortisation of set
up fees and other professional services income deferred under IFRS 15
As restated As restated As restated As restated As restated
Six months to Six months to Six months to Six months to Six months to
Dec 23 Dec 23 Dec 23 Dec 23 Dec 23
EMEA North America ANZ Central costs Total
£000s £000s £000s £000s £000s
Revenue
Revenue from recurring contract Fees 4,815 2,513 174 - 7,502
Non recurring transaction Fees 259 - - - 259
Set up and Professional Services Fees ((1)) 369 275 14 - 658
Total 5,443 2,788 188 - 8,419
Gross Profit 4,544 2,748 187 - 7,479
Margin % 83.5% 98.6% 99.5% - 88.8%
Administrative Expenses (4,801) (2,732) (301) (586) (8,420)
Inter-company Royalty 738 (691) (47) - -
Exceptional Items (12) (133) - (490) (635)
Profit/(Loss) from Operating Activities 469 (808) (161) (1,076) (1,576)
Bank charges and Interest payable (9) (4) - (46) (59)
Finance Income 10 - - - 10
Profit/ (Loss) before Taxation 470 (812) (161) (1,122) (1,625)
((1)) Set up and Professional Services Fees represents the amortisation of set
up fees and other professional services income deferred under IFRS 15
5. Underlying financial performance analysis
The Group uses the following internal metric to calculate Adjusted EBITDA:
Six months to Six months to Six months to Six months to Six months to
Dec 24 Dec 24 Dec 24 Dec 24 Dec 24
EMEA North America ANZ Central costs Total
£000s £000s £000s £000s £000s
Profit/(Loss) before Taxation 574 207 (155) (912) (286)
( )
Adjust for:
Expenses relating to share options 91 35 (2) 3 127
Non-operational costs 96 - - 250 346
Exchange Loss/(Gain) 15 (33) 29 - 11
Bank charges and Interest Payable 8 3 - 24 35
Finance Income (6) (14) - (38) (58)
Adjusted Profit/(Loss) from Operating Activities 778 198 (128) (673) 175
Depreciation & Amortisation 772 1 1 - 774
Adjusted EBITDA 1,550 199 (127) (673) 949
As restated As restated As restated As restated As restated
Six months to Six months to Six months to Six months to Six months to
Dec 23 Dec 23 Dec 23 Dec 23 Dec 23
EMEA North America ANZ Central costs Total
£000s £000s £000s £000s £000s
Profit/(Loss) before Taxation 470 (812) (161) (1,122) (1,625)
( )
Adjust for:
Expenses relating to share options 76 26 13 24 139
Exceptional Items 12 133 - 490 635
Exchange Loss/(Gain) 25 54 (12) - 67
Bank charges and Interest Payable 9 4 - 46 59
Finance Income (10) - - - (10)
Adjusted Profit/(Loss) from Operating Activities 582 (595) (160) (562) (735)
Depreciation & Amortisation 664 - 1 - 665
Adjusted EBITDA 1,246 (595) (159) (562) (70)
6. Earnings per share
The basic and diluted earnings per share are calculated on the following
profit and number of shares. Earnings for the calculation of earnings per
share is the net profit attributable to equity holders of the parent.
Six months ended 31 December Restated Twelve months ended 30 June
2024 Six months ended 31 December 2024
2023
£000 £000 £000
Earnings for the purposes of basic and diluted earnings per
share
Loss after taxation (287) (1,090) (1,179)
Denominator '000 '000 '000
Weighted average number of shares in issue in the period 72,422 65,463 67,646
Dilutive effect of potential shares and share options 8,592 8,627 8,773
Number of shares used in calculating diluted earnings per share 81,014 74,090 76,419
Basic and diluted earnings per share expressed in pence (0.40) (1.67) (1.74)
There are no separate diluted earnings per share calculations shown as it is
considered to be anti-dilutive.
7. Prior Period Restatement
The Directors have identified two prior period adjustments as follows:
1. As reported in the FY24 Annual Report, there was an adjustment to
correct the historical timing of revenue recognition in respect of certain
customer contracts and to appropriately adjust the resulting deferred income
balances carried forward.
At 30 June 2023 and 31 December 2023, the result of this adjustment on the
Consolidated Statement of Financial Position was to increase current deferred
income by £0.32 million and non-current deferred income by £0.09 million,
with a corresponding increase in net liabilities of £0.41 million. There was
no impact on the Consolidated Statement of Comprehensive Income and no impact
on the Consolidated Statement of Cashflows for this adjustment.
2. As announced on 28 August 2024, there was a deferral of revenue in
respect of a specific customer from FY24 into FY25. The impact on the
Consolidated Statement of Comprehensive Income for the six-month period ended
31 December 2023 has been to reduce recognised revenue by £0.32 million and a
corresponding increase in deferred income by the same amount in the
Consolidated Statement of Financial Position.
The effect of the correction of these two prior period adjustments on the
Consolidated Statement of Comprehensive Income and the Statement of Financial
Position as at 31 December 2023 and 1 July 2023 is shown below.
As originally stated Prior period restatement (1) Prior period restatement (2) As restated
£000s £000s £000s
Reconciliation of Comprehensive Income for the six months ended 31 December
2023
Revenue 8,736 - (317) 8,419
Loss for the period (773) - (317) (1,090)
Basic and diluted Loss per share (1.18) - (0.49) (1.67)
(expressed in pence)
Reconciliation of equity as at 31 December 2023
Deferred income due within 1 year (11,076) (319) (362) (11,757)
Total current Liabilities (13,661) (319) (362) (14,342)
Deferred income due after 1 year (1,866) (94) 45 (1,915)
Total non-current liabilities (1,866) (94) 45 (1,915)
Total liabilities (15,527) (413) (317) (16,257)
Net liabilities (4,665) (413) (317) (5,395)
Share capital 656 - - 656
Share premium 14,287 - - 14,287
Other reserves 1,061 - - 1,061
Currency reserves (222) - - (222)
Profit and loss account (20,447) (413) (317) (21,177)
Total equity (Shareholders' deficit) (4,665) (413) (317) (5,395)
The effect of the correction of the first prior period adjustment the
Statement of Financial Position as at 1 July 2023 is shown below.
Reconciliation of equity as at 1 July 2023
As originally stated Prior period restatement (1) As restated
£000s £000s £000s
Deferred income due within 1 year (8,045) (319) (8,364)
Total current Liabilities (11,822) (319) (12,141)
Deferred income due after 1 year (3,777) (94) (3,871)
Total non-current liabilities (3,800) (94) (3,894)
Total liabilities (15,622) (413) (16,035)
Net assets /(liabilities) (4,109) (413) (4,522)
Share capital 656 - 656
Share premium 14,281 - 14,281
Other reserves 922 - 922
Currency reserves (294) - (294)
Profit and loss account (19,674) (413) (20,087)
Total equity (Shareholders' deficit) (4,109) (413) (4,522)
8. Subsequent events to 31 December 2024
There have been no subsequent events since the balance sheet date.
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