Shares of PCI-PAL PLC (AIM:PCIP), a provider of secure payment solutions, fell by 10% in early trading, even after the company announced a victory in a UK High Court patent case against competitor Sycurio Limited. The court ruled strongly in favour of PCI-PAL, stating that Sycurio's patent claims were unfounded.
The company also mentioned that it is prepared for a possible appeal from Sycurio but remains confident in the court's decision. A hearing in December will resolve any remaining issues, and PCI-PAL plans to recover maximum costs.
On the business front, PCI-PAL reported a positive year, signing 57 new contracts and expecting revenue growth of 28-30% for the next financial year. The company also introduced new AI-powered features and signed a major new reseller in the United States.
Despite these positive developments, the company's shares experienced a downturn, highlighting the often unpredictable nature of stock market reactions.
"The detail of the written ruling of the UK High Court case is resoundingly in PCI Pal’s favour, and PCI Pal will be seeking the maximum recovery of costs when the Form of Order hearing takes place in December," said corporate broker Cavendish.
"Should Sycurio choose to appeal the ruling, the comprehensive nature of the judgement invalidating the patent for numerous reasons, and confirming that PCI Pal’s solutions do not infringe, means that PCI Pal remains very confident in its position."
Cavendish reckons the shares are worth 125p each - a significant premium to the current price of 49.48p, down 5.53p.