PCI-PAL jumps after US contracts bolster recurring revenues

PCI-PAL gained on Monday after reporting that recurring contracts won in the first six months of its financial year more than doubled that of the entire prior year.

The payments technology company said that for the six months ended 31 December the recurring annual contract value (ACV) of new contracts worldwide signed by the AIM traded company was £1.30m, up from £0.17m over the same period last year and 136% higher than the ACV of sales achieved for the full prior financial year.

Total contract value was £3.41m, up from £0.68m on-year, as North American contract wins exceeded management expectations to reach a total value of £0.95m, up from zero, as contracts were secured with four of North America's "leading VARs and Master Agents".

James Barham, chief executive, said: "Over the last six months we have continued to develop a strong partner-led sales pipeline, closed major new enterprise customer accounts, and at the same time made solid progress with investments in our cloud technology and operational capabilities.

Like-for-like indicative IFRS 15 revenue for the period was expected to have grown by at least 25%, while net cash stood at £3.54m, down from £3.75m the year before, after the final payment of £1.34m against the now fully-repaid loan note.

"Leveraging our secure cloud payments technology with select and global leading partners is helping us to build our brand, reputation and growth rate internationally. I am excited for the second half of this fiscal year and the year that follows," said Barham.

PCI-PAL's shares were up 13.50% at 19.86p at 0903 GMT.