PCI-PAL PLC (AIM:PCIP), the AIM-quoted payments security group, jumped 14% after full-year results showed record growth and a confident outlook.
The figures were solid across the board. Annual recurring revenue rose 25% to £19.3 million, driven by new customers, upsells and faster conversion of contracts in deployment.
Recurring revenue now makes up 91% of the total, with group revenue up 25% to £22.5 million.
Gross profit rose in line at £20.1 million, giving a margin of nearly 90%.
Adjusted earnings before interest, tax, depreciation and amortisation came in at £2.3 million, with operating costs up 17% as the company ploughed money into its platform and new products.
Net cash stood at £3.9 million at year-end, boosted by a £3.5 million placing last year.
That leaves scope for further investment in marketing, engineering and product launches. The July strategy review outlined ambitions to sustain 18-20% annual recurring revenue growth over the long term, with a fraud risk management tool already rolled out.
Trading in the new year has started well, with PCI-PAL landing its biggest conversational AI contract to date and its largest Canadian deal.
With patent disputes settled and a partner-led sales model gaining traction, Cavendish says the group is well placed to build on its momentum.
The broker's target price is 125p, more than double the current 52p valuation (up 6.5p on the day).