IPPlus expects to report modest FY pre-tax profit

In a trading update for the year to the end of June, the services company said the full-year result reflects a strong performance by the Ansaback division (incorporating PCI-PAL), which continued to perform in line with the board's expectations, with growth in both revenue and new contract wins.

IPPlus said Ansaback benefited from a substantial new call centre contract, whilst PCI-PAL, the secure payment technology business, benefited from a number of significant contracts awarded including a major pan-European fitness chain, a market leader in the European gaming sector, a leading national online estate agency, a global retail fashion brand and a global furniture brand.

Comparing July 2016 with January 2016, PCI-PAL experienced a 46% jump in transaction volumes.

However, the performance of Ansaback and PCI-PAL was partly offset by a weaker-than-expected showing from the company’s software division, CallScripter.

The group's cash position at the end of June was about £0.9m.

Chief Executive Officer William Catchpole said: "It has been an excellent year for our PCI solution and its sales pipeline is extremely encouraging. Similarly our call centre business performed well. The group has good recurring revenue and an adequate capital position.

"The current year has started well, with PCI-PAL in particular securing several significant wins from high profile national branded businesses. We expect to see a continuing strong rise in transaction volumes processed through PCI-PAL. The board remains confident of good prospects ahead for the businesses."

At 1250 BST, shares were up 20% to 15p.