Shares in Earthport plc (LON:EPO) gained on Friday after the global payments specialist reported a 5.3% rise in full-year revenue despite a “challenging” year for the business.
The company, which provides cross-border payment services to banks and businesses, had a tumultuous year that included the loss of a major payment customer, reduced transaction volumes and a management shakeup.
Nevertheless, the group posted revenue of £31.9mln in the year to June 30, up from £30.3mln last year.
Core payment business revenue edged up 1.6% to £19.6mln as the loss of a payment customer was offset by higher volumes processed for other customers.
The division achieved revenue growth despite transaction volumes falling to 10.4 million from 10.8 million and the value of payments processed dropping to £10.8bn to £11.3bn.
Foreign exchange business revenue rose 6.3% to £10.2mln and professional services revenue jumped 50% to £2.1mln.
The adjusted operating loss widened by 33% to £8.4mln, reflecting an increase in staff numbers and IT operational costs in upgrading technology and extending the Earthport payment network.
New management team
Amanda Mesler, who was appointed chief executive in July, said she was focused on addressing Earthport’s challenges.
"Since joining I have established a new executive team which greatly improves our breadth and depth of experience,” she said.
“This team will enable us to rapidly implement the transformational growth strategy I have also put in place following a full strategic review.
“This strategy involves a redefined ‘go to market’, investment in our technology platform, capability enhancement and a new operating model for scale, all of which will strengthen our position as a global payments business.”
Hiring a new executive team was Mesler’s first priority. The team now includes chief financial officer, Alexander Filshie, chief operating offer Helen Smith and chief technology officer John Farrell.
Progress in new fiscal year
The company said the growth in business payment transaction volumes seen in the last year has continued in the current year. Payment business transaction volumes are now back above the previous highest recorded levels.
Since the end of the year, the group has signed a contract with BNPI, went live with Indusind Bank and expanded route usage for key clients.
The group said the foreign exchange business continues to face strong competition from an increasing number of providers but it believes its strategy of offering a broad range of currencies and the potential to combine with international settlement across its network means it is well-placed.
Shares rose 3% to 6.38p in morning trading.