Payments services and technologies provider SafeCharge International Group Ltd (LON:SCH) has provided a Trading Update on its second half and full year 2016 results, ahead of releasing full financial figures next month.
Overall, it was a fairly rosy report issued by SafeCharge. The company stated that it generated record transaction processing volumes and revenues during Q4, following management’s focus on winning Tier 1 customers including PaddyPower Betfair, Sun Bingo, Sisal and Nayax, all of which were launched in the second half.
However a busy Q4 followed a quieter Q3 at SafeCharge.
SafeCharge management expects to report 2016 EBITDA in the range of USD $33-34 million. SafeCharge earned $16.8 million of EBITDA in the first half of the year, so the range provided indicates no earnings growth in the second half of the year.
The SafeCharge Board plans to pay full year dividends of 75% of EBITDA. Management also expects to report that the company closed the year with more than USD $124 million of cash and short term investments, and continues to be debt-free.
During 2016 SafeCharge committed substantial resources to its business in response to:
- anticipated changes in its regulatory and commercial environment
- evolving customer requirements; and
- its strategy to develop sustainably high quality, low risk revenues from a diversified customer base.
This activity included reshaping its customer base, diversifying into new sectors and geographic markets; and making its first moves into card-present and land-based payments acquiring.
The company reported successfully attracted high quality senior managers from well-established businesses in the payments sector to meet the changing requirements of current and future customers in new sectors and geographies. These new team members are helping the company to win sustainable, high quality business in both existing and target commercial e-commerce verticals and geographies.
SafeCharge’s businesses are already seeing the benefits of its strategy and investment, with further Tier 1 wins in core sectors; new and growing customers in Romania, Italy and Portugal; the on-going global roll-out of the company’s first airline customer; and the group’s first card-present customers driving substantial daily transaction volumes through SafeCharge’s payments and acquiring platforms.
David Avgi, SafeCharge
SafeCharge CEO David Avgi, said:
Since listing the Group nearly three years ago we have rapidly developed the scope and scale of our business, enabling us to start 2017 with the ability – and appetite – to aggressively compete for a greater share of Tier 1 customers across multiple e-commerce verticals and geographic markets.
At the same time as achieving a strong financial performance, including paying substantial dividends to shareholders, we have maintained an acute awareness of what it will take to continue being successful as our markets evolve and customer needs change.
I am excited by the challenges and valuable opportunities ahead of us and believe that we are ideally positioned to sustainably grow the business.
As far as Outlook for 2017 goes, the company stated that it remains confident that its focus on higher quality earnings from its healthy pipeline will yield continued revenue growth during 2017, building profitable momentum into 2018.