Mi-Pay Group's loss narrows after revenue growth and cost cutting

For the year ended 31 December, the mobile payment technology provider's total revenue was expected to come in at £3.3m, up from £3.0m for the year before, after an increase in payment transaction values processed to £106m from £94m, while operating losses were set to narrow from £0.6m to £0.2m as administrative expenses were reduced.

A statement from Mi-Pay added that, during the six-month period to 31 December, the company delivered a profit before interest, tax and depreciation.

Michael Dickerson, chairman of Mi-Pay, said: "Delivering underlying profitability in the second half of 2018 was a key target for Mi-Pay and we are pleased to have achieved this important milestone. The improved performance seen in H2 2018 was a result of delivering a new revenue channel for payment fraud management through the leverage of our in-house technology, a continuing reduction of our operating cost base and strong growth across our existing clients."

£43m of payment transactions for fraudulent activity were successfully indemnified over the period using the company's proprietary payment fraud solution, resulting in new revenue of £0.3m.

The AIM traded company's cash position at 31 December stood at £3.5m, up from £2.9m at the same point the year before, with £2.9m of this balance related to the management of client payments.

"We expect to see this growth continue as the e-commerce and digital channels increasingly become our clients' core strategic focus for customer engagement and our new fraud management services continue to expand," said Dickerson.

Mi-Pay's shares were unchanged at 9.70p at 1159 GMT.