MoneySwap loss widens, debts increase

MoneySwap's finances weren't looking so hot in the six months to 30 September, with its operating loss widening despite slightly higher revenue.

The AIM-listed payment solutions provider, with a focus on Chinese card system UnionPay, saw revenues rise to $135,000 (£90,794) in the period - up from $101,000 in the same period last year.

MoneySwap said this resulted primarily from £2.3m worth of equity investment in the company and the commission paid from that.

Excluding that commission, operating expenses slightly decreased by 1%, though the group's operating loss widened during the period from $1.7m to $2.1m.

Outside of the equity investment, MoneySwap also received several loans from an unrelated party during the period totalling $254,000. MoneySwap exercised a right to extend the loans in November, to 29 February 2016, and since the period under review closed it received a further $430,000 loan from the same party.

The total loan amount outstanding stood at $684,000 at the time of the announcement.

MoneySwap was looking ahead positively, however, with the news it had successfully integrated with major payment gateways Sage and FIS.

It said it was now the preferred UnionPay option for both gateways, and was signing up new merchants - including tier one retailers in the UK - to allow them to accept UnionPay.

"We have also applied to the Financial Conduct Authority...to become an authorised payment institution", the firm said in the announcement.

"This status will allow us to enlarge our market base into Europe and by replicating our partner strategy, we can provide UnionPay services to their merchants who see an opportunity to leverage the interest from inbound Chinese consumers."

At 1035 GMT, MoneySwap shares were down 16.67% to 0.05p.