PCI Pal on Cloud Nine as expansion takes flight
PCI Pal, a cloud provider of secure payment solutions for business communications, is on the cusp of significant global expansion thanks to astute cash management allied to accelerating revenues.
The Ipswich-based company buoyed shareholders with an upbeat trading statement for the year to June 30. It has generated sufficient cash to accelerate repayment of outstanding debt facilities.
CEO James Barham said the positive trading momentum since the end of Q3 had continued, such that revenues for the full year were expected to be at least five per cent ahead of current market expectations.
This will result in an increase year on year of approximately 60 per cent. As a result, the adjusted loss before tax for the period is expected to be approximately five per cent less than market expectations.
The group's new sales bookings continue to be in line with management expectations for the year, even after the adverse movement of the US dollar exchange rate – maintaining the company's strong momentum going into FY22.
The company has continued to generate cash from its trading activities ahead of management expectations. As a result, and following a recent placing, the board has decided to accelerate the repayment schedule of its outstanding debt of £1.7 million prior to the end of the current financial year.
There is no early settlement penalty for early repayment and it will result in an interest saving of approximately £0.1m in FY22. Under the original repayment terms of the loan, the debt would have been repaid in full by September 2022 so this move will have no impact of the company's planned international expansion which was outlined at the time of the successful equity raise in April.
The Group's channel-first sales approach continues to progress, and partners are expected to generate approximately 75 per cent of new sales in the year.
Q4 highlights to date include an expansion of an existing partner relationship with Genesys, one of the largest technology suppliers to contact centres worldwide.
PCI Pal products are now available natively within Genesys Cloud products as a premium partner on the Genesys AppFoundry globally.
The group has also continued to grow its partner ecosystem in the segment of Business Process Outsourcers (BPOs), by signing one of the largest BPOs in the world. This included that partner's first sale of PCI Pal's Agent Assist solution to a US-based energy company. It adds to a growing number of leading BPO providers that have selected PCI Pal for their global secure payment needs.
Barham said: “We're delighted to be able to confirm continued strong trading in Q4 with significant progress against all key strategic initiatives.
“We are at a very exciting point in our growth story. The recent news of our targeted partner eco-system expansion further supports our vision to be the leading provider of secure payment services for business communications worldwide.”
• Current market expectations for the financial year ending June 30 provided by finnCap is revenue of £6.70m and adjusted loss before tax of £3.80m.