REG - PCI-PAL PLC - Trading Update, Notice of Results & Investor Pres

PCI- PALAnnouncement

19/01/2022 07:05

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220119:nRSS8678Ya&default-theme=true

RNS Number : 8678Y  PCI-PAL PLC  19 January 2022

 
PCI-PAL PLC
("PCI Pal", "the Company" or "the Group")
Trading Update & Notice of Results
Analyst Briefing & Investor Presentation
 
Stronger than anticipated trading with significant revenue growth

 

PCI-PAL PLC (AIM: PCIP), the global cloud provider of secure payment solutions
for business communications, announces a trading update for the six months to
31 December 2021.

 

The Board is pleased to report an excellent first half of the year. All of the
Group's key metrics are either at or ahead of management expectations, and as
a result, the Group anticipates that revenue and losses before tax will now be
better than the current market expectations for the full year.

 

In the first six months, revenue has increased 72% year-on-year to £5.4
million, reflecting the strength of PCI Pal's channel-focused,
subscription-based revenue model.  The Group has also grown its key indicator
of future recurring revenues, Total Annual Contract Value ("TACV(1)"), by 37%
to £11.4 million (2020: £8.3 million).  Driving this increase is the new
business ACV(2) signed in the period of £1.8 million (2020: £1.7 million),
with 81% of such contracts signed through our reseller partners (2020: 74%).

 

Adding to this revenue growth is the Company's performance against the key
SaaS metrics associated with its Customer Success function.  PCI Pal is
pleased to report that its positive Net Revenue Retention ("NRR(3)"), for its
AWS platform, has increased to 120% (30 June 2021: 111%), which has included a
number of expansion sales to several enterprise-sized customers. Additionally,
customer Churn on the platform has further improved to just 3.4% (30 June
2021: 6.7%).

 

The strong trading performance has enabled the Group to maintain cash balances
at £5.5 million (30 June 2021: £7.5 million).

 

Proceedings in relation to the alleged patent infringement being made against
the Company are ongoing and the Company is continuing to work towards an
outcome that it believes will best benefit the business.

 

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

 

"We have enjoyed an excellent performance in the first half of the year.
Demand for our market leading cloud services continues to gather pace as a
result of our well-established and growing partner eco-system; our targeted,
account-based direct sales activity; and the strong early results from our
increased focus on Customer Success which is driving NRR and Churn rates into
the top quartile for B2B SaaS benchmarks.

 

"Furthermore, we have made solid progress towards our growth plans for the
year. Despite the universal hiring challenges faced by all companies, we have
successfully expanded our team with key strategic hires across two new
geographies of Canada and Australia, as well as expanding our team in the US
and across core business functions in the UK such as Product Development and
Engineering. At the same time our employee retention rates have remained
encouragingly very high.

 

"With the strength of trading shown to date, and a growing pipeline and
partner eco-system, we now anticipate that the Group will exceed its current
market revenue expectations, resulting in a reduced loss before tax for the
financial year. The Board remains confident in the longer-term outlook for the
Group and continues to invest in its ambitious growth strategy."

 

 

Notice of Results:

PCI Pal expects to announce its Interim Results on Tuesday 1 March 2022.

Analyst Briefing: 9.30am on Tuesday 1 March 2022

 

An online briefing for Analysts will be hosted by James Barham, Chief
Executive, and William Good, Chief Financial Officer, at 9.30am on Tuesday 1
March 2022 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 3 March 2022

 

The Directors will hold an investor presentation to cover the results and
prospects at 3.00pm (UK time) on Thursday 3 March 2022.

 

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.

 

(1) TACV is the total expected annual recurring revenue from all contracted
customers, whether invoiced and included in deferred revenue or still to be
deployed and/or invoiced.

 

(2) ACV is the contracted annual recurring licence revenue component of the
contract.

 

(3) AWS platform net retention rate is calculated using the opening total
value of deployed contracts at the start of the period less the ACV of lost
deployed contracts in the period plus the ACV of upsold contracts signed in
the period all divided by the opening total value of deployed contracts at the
start of the period.

 

 

For further information, please contact:

 

 PCI-PAL PLC                                 Via Walbrook PR
 James Barham - Chief Executive Officer

 William Good - Chief Financial Officer

 finnCap (Nominated Adviser and Broker)      +44 (0) 20 7227 0500
 Marc Milmo/Simon Hicks (Corporate Finance)

 Richard Chambers (Corporate Broking)

 Walbrook PR                                 +44 (0) 20 7933 8780
 Tom Cooper/Nick Rome                        +44 (0) 797 122 1972
                                             PCIPAL@walbrookpr.com

 

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.

 

 

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/)

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTBPMRTMTMBBBT