REG - PCI-PAL PLC - Trading & Business Update

PCI- PALAnnouncement

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RNS Number : 8848S  PCI-PAL PLC  29 July 2025

 

29 July 2025

 

PCI-PAL PLC

("PCI Pal", the "Company" or "the Group")

 

Trading & Business Update

 

PCI-PAL PLC (AIM: PCIP), the global cloud provider of secure payment solutions
for business communications, is pleased to provide the following update on the
trading and outlook for the Company.

 

Highlights

 

·      FY25 has seen the Company deliver excellent progress against its
key KPIs, with ARR increasing by 25% to £19.3m and both Revenue and Adjusted
Profit before Tax in line with market expectations*.

 

·      The Company has further expanded its market leading partner
eco-system as well as broadening existing key partner relationships,
maintaining 100% retention of all strategic partners.

 

·      FY26 brings an increased focus on further product innovation with
product launches anticipated to complement the existing PCI Pal product suite
and generate incremental ARR.  This includes the announcement today of the
launch of the Company's new AI-powered fraud risk scoring product now
available across the PCI Pal platform.

 

·      A new strategic plan has been put in place as the Company looks
to increase near term investment utilising the Company's available cash
resources to continue to support long term organic growth rates of ARR in the
region of 18-20% through FY27 and beyond.

 

·      FY26 revenue expectation range of £23.5m to £24m reflecting
timing of new business and current FX rates.

 

*The Board understands that current market estimates for FY25 are revenues of
£22.4m and adj. PBT of £0.8m.

 

FY25 Trading Update

 

Another strong year of organic growth for PCI Pal with the Company delivering
against its objectives for the year.  The Company expects to report an
adjusted profit before tax in line with market expectations along with the
following key metrics(*) in its FY25 results:

 

 £ million                                      FY25        FY24     YoY (+/-)

                                                Expected*            Expected
 Annual Recurring Revenue (ARR)(1)              £19.3m      £15.5m   +25%
 Contracted Annual Recurring Revenue (CARR)(2)  £22.2m      £19.2m   +16%
 Revenue                                        £22.5m      £18.0m   +25%
 Net Revenue Retention (NRR)(3)                 104%        102%     +2%
 Gross Revenue Retention (GRR)(4)               95.1%       96.5%    -1.4%
 Net Cash                                       £3.9m       £4.3M    -9%

* Subject to final audit

 

FY25 has seen continued momentum in the operational performance of the
business.  In particular we draw attention to the Company's continued ability
to expand its partner eco-system and win new integrated reseller partnerships
with the world's leading business communications companies, reflecting its
position as the leading cloud provider in its space:

 

·      As announced on 10 March 2025, the new partnership with
RingCentral, won in the year, is now at launch across Europe and North America
and has now begun to generate meaningful sales pipeline which has resulted in
a number of new customer wins towards the Company's year-end.

 

·      In H2, the Company also agreed a new agreement with a billion
dollar revenue business communications company who have recently launched
their own CCaaS(5) offering alongside the company's well-established unified
communications and meeting's portfolio.  PCI Pal has been selected as the
preferred secure payments provider.

 

FY26 Outlook

 

The Board currently expects Group revenue for FY26 to be within a range of
£23.5m to £24m**.  The Boards current assessment of FY26 revenues is driven
by two key factors.  The first being the weakening of the US dollar which has
an impact on the Company's reported revenue in pound sterling given the
increasing revenues being generated from North America. The second being the
timing, mix and size of new business wins and the timeframe to revenue
recognition from that new business.

 

Overall, new business sales momentum remains strong, and the Board is
confident in the Company's growing sales pipeline as a result of strong
execution against the Company's core objectives.  Notwithstanding FX
considerations, the Company believes that FY26 Group CARR and ARR should be in
line with management's expectations.

 

** The Board understands that current consensus estimates as at 28 July 2025
for FY26 revenue is c.£25.5m.

 

New Strategic Plan

 

With the successful completion of proceedings in the patent lawsuit that the
Company had with a competitor, as announced in June 2024, and following the
appointment of a new CFO in October 2024, the Board has undertaken an
extensive review of its rolling three-year plan. The objective of this review
was to ensure that the Company can build on its now proven stronger market
position and capitalise on the undoubted market opportunity before it.  Today
the Board provides the following updates on its revised three-year plan:

 

·      The Company remains focused on delivering against its growth
objectives with an aim to continue building a business driving organic year on
year ARR growth in the region of 18%-20% through FY27 and beyond.

 

·      The Group plans to maximise the opportunity presented by the
fast-growing global cloud based contact centre solutions market.  The market
is expected to grow by six times with a CAGR of more than 20% for the next
eight years to $180 billion(6) in market value.

 

PCI Pal is exceptionally well positioned with deep technology integrations to
the majority of the major CCaaS platforms that underpin and facilitate this
broad contact centre solutions market.  The Company intends to further deepen
its relationships with CCaaS vendors through a combination of broader sales
engagement and new product innovation across payments, fraud, identity, and
customer experience.

 

·      To support this long-term growth objective, the Company plans to
utilise available cash resources to increase its investment in marketing,
product marketing, and engineering to better support the Group's financial
plans and continue to increase its sales pipeline.

 

As part of this plan, since period end, the Company has successfully hired a
new Chief Marketing Officer who is US-based with extensive relevant
experience.

 

·      The Company's continued focus on product innovation will involve
the launch of adjacent products commencing in FY26 that will grow its
addressable market whilst increasing cross-sell opportunities to existing
customers with whom it has exceptionally high retention rates. The first of
these, a new AI-powered fraud risk scoring product to help combat payment
fraud, was announced earlier today.

 

The Company intends to spend in the region of £1.5 million on this additional
investment with the majority of this coming in FY26.

 

The Board believes that given the leading market position of the Company, this
increased investment will prove impactful.  Pace is a key strategic
consideration of the Board in making these plans so that the Company can
continue to aggressively build momentum over its competitors. These
investments will also allow the Company to fully grasp the growing opportunity
in its market to provide solutions to its customers who utilise both human and
AI agents across all customer interaction channels.

 

Commenting on progress, James Barham, Chief Executive Officer of PCI Pal,
said:

 

"FY25 marked another year of strong organic growth for PCI Pal, with ARR up
25% and both Group revenue and profitability in line with expectations. We
continued to expand our partner ecosystem, added new high-impact relationships
with global vendors like RingCentral, and maintained excellent customer and
partner retention - underscoring the strength of our platform and execution.

 

"While FY26 revenue expectations reflect FX headwinds and the timing and mix
of new business through to revenue recognition points, ARR and CARR momentum
remain strong, supporting our ambition to deliver sustained ARR growth of
18-20% per year through FY27 and beyond.

 

"With a refreshed strategic plan, a strengthened leadership team, and the
first new product launch in a range of planned product innovations for the
periods to come, we remain firmly committed to scaling the business and
delivering long-term shareholder value through consistent, high-quality
growth."

 

 

(1) ARR is the Annual Recurring Revenue of all the deployed contracts

 

(2) CARR or Contracted Annual Recurring Revenue 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.  CARR provides a
direct line of sight to future ARR from the Company. The naming of this metric
as CARR replaces the Company's historic use of TACV, which had the same
definition.

 

(3)NRR is the Net Retention Rate of the contracts that are live on the AWS
platform and is calculated using the opening total value of deployed contracts
from twelve months ago less the ACV of lost deployed contracts in the last 12
months plus the ACV of upsold deployed contracts signed in the last twelve
months all divided by the opening total value of deployed contracts at the
start of the 12-month period.

 

(4)GRR is the Gross Retention Rate (of the contracts that are live on the AWS
platform) and 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

 

(5)CCaaS is Contact Centre as a Service, referring to the business
communications vendors providing that service.

 

(6)iMarc Cloud Contact Centre Market Report 2024 - Report & forecast
2024-2033

 

 

Video:

 

Chief Executive of PCI-PAL PLC, James Barham, talks to the Trading &
Business Update -
https://www.investormeetcompany.com/updates/chief-executive-talks-to-the-trading-business-update/show
(https://urldefense.proofpoint.com/v2/url?u=https-3A__www.investormeetcompany.com_updates_chief-2Dexecutive-2Dtalks-2Dto-2Dthe-2Dtrading-2Dbusiness-2Dupdate_show&d=DwMFAg&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=05PHl3GHdShYuaCii2fBRpoqaNr9B1d97X09daeosu0&m=Oe3ykitHDasc7e_Vwzzz1r5HGiiTIbiPmi_e_e3iAly6hDR_sugUyNnySiligL3k&s=QdEBtBqGk-ZrRitCI3Trtj2yExiqcNs70irdJ0O8wqw&e=)

 

 

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 (mailto: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 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 (http://www.pcipal.com) or follow
the team on Linkedin: https://www.linkedin.com/company/pci-pal/
(https://www.linkedin.com/company/pci-pal/)

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