REG - PCI-PAL PLC - Trading Update & Notice of Results

PCI- PALAnnouncement

02/02/2023 07:01

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RNS Number : 6364O  PCI-PAL PLC  02 February 2023

 
 

 

2 February 2023

 
PCI-PAL PLC
("PCI Pal", "the Company" or "the Group")
Trading Update & Notice of Results
 
Continued Global Growth With Record New Customers Contracted

 

PCI-PAL PLC (AIM: PCIP), the global cloud provider of secure payment solutions
for business communications, is pleased to announce a trading update for the
six months to 31 December 2022.

 

The Board is pleased to report a strong first half with revenue growth of 33%
to £7.3 million (2021: £5.5m). Adjusted EBITDA loss for the period was
better than management expectations at a loss of £0.6 million (2021: loss of
£0.6m).

 

The Company signed a record 116 new customer contracts in H1 contributing
£1.5 million of new ACV(1) (2021: £1.8m). 83% of the new contracts were new
logos (2021: 63%). As a result, the Group's leading indicator of future
recurring revenues, Total Annual Contract Value(2) ("TACV"), has increased 29%
to £14.7 million at end December 2022 (2021: £11.4 million). The Company's
sales pipeline continues to grow with a strong outlook for H2.

 

In the period, the Company continued to successfully execute against the
strategic initiatives commenced in FY22. These have included the on-going
expansion of its global presence with new business sales and further pipeline
growth from its new offices in Australia and Canada; as well as continued
investment into both its product roadmap and customer success function,
driving strong customer retention and upsell opportunities.

 

In April 2022 the Company announced the grant of its patent in the United
States covering innovative integration methods for its Agent Assist
solution.  In particular this patent covers how PCI Pal's public cloud
environment leverages modern voice IP capabilities to integrate to its
customers and partners own networks in a light-touch, non-invasive, and
cost-effective way.  This patent has now also been granted in both Australia
(AU2018349164) and, within the last month, the UK (GB2569772) respectively.

 

Furthermore, the Company continues to manage the unfounded patent-case being
made against it by one of its competitors, and remains confident of not only
defending its position on infringement, but also of proving the invalidity of
the patents in question.

 

The Group is on track for sustainable cash breakeven in H2, and ended H1 with
a cash balance of £1.9 million at 31 December 2022. Since the end of the
half-year the cash position of the Group has increased and now stands at £2.7
million reflecting the continuing strong retention and renewal timing of our
growing contract base.

 

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

 

"The investments we have made to date have created the most advanced cloud
platform in our market with a market-leading partner eco-system. I am very
pleased with the progress we are delivering in making our services available
to customers on a truly global basis whilst remaining firmly on track to hit
cashflow breakeven in this financial year.

 

"We are balancing this financial progress with continued investment into our
product roadmap to further expand our addressable market opportunity in the
long term; and this is underpinned by a core product set that continues to
gain increased levels of interest, which as a result is driving growth of our
near term sales pipeline.

 

"With the strength of the pipeline, our partner eco-system, and high levels of
customer retention, we are confident of achieving the board's expectations for
the current financial year."

 

 

Notice of Results:

PCI Pal expects to announce its Interim Results on the week commencing 13
March 2023.

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

 

(2) 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.

 

 

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)

 Sunila De Silva (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/)

 

 

 

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