News
24th Mar 2009 - Interim Results
Earthport plc, the global payments utility, announces its interim results for the six months ended 31 December 2008.
Introduction
The results for the six months ended 31 December 2008 demonstrate continued progress despite the effects of the recent the global credit crunch following the turbulence in the banking industry. Interest in the Company's technology and products remains high and is increasing as the Company continues to market its products and services widely around the world.
Revenue for the six months ended 31 December 2008 increased to £1,193,000 compared to £1,067,000 for the six months ended 31 December 2007. Although the increase is satisfactory in the context of the current economic climate, it does not reflect the possible step changes that could have been achieved if the agreements with major banking industry clients had come on stream during the period. The Company continues to drive forward discussions, negotiations and integrations in relation to a number of such agreements.
Strategic Review
The liquidity crunch facing the world's banks is encouraging the use of Earthport's banking network, as it provides liquidity for banks. In addition, high volume low-risk fee-earning businesses, like transaction banking, are becoming an important part of banks' offerings to their customers. This is a service that Earthport delivers to banks at advantageous terms in white label format.
Earthport attended Sibos 2008 in conjunction with IBM in Vienna and subsequently there is a strong pipeline of prospects that the Company has been pursuing. Earthport will be attending Sibos 2009. The Company was active in promoting the TS Lite trade services product for banks, developed jointly with Adobe. Using Earthport to facilitate low level international trade lowers the risk for a bank offering this service to its SME customers. The Lloyds TSB Group announced in February 2009, that it is the banking group working with Earthport to develop the TS Lite services product. Earthport also secured a partnership with Experian Limited to provide its customers with access to Earthport's UPN through Experian's Payments Gateway.
In December 2008 Earthport agreed to partner with a local corporation to establish a sales office in the United Arab Emirates, Earthport Middle East Ltd. As a result of the establishment of the sales offices, Earthport has accessed and is pursuing a number of opportunities with large and medium sized clients. One Earthport client has already gone live in making remittances from the UAE to Africa.
PFurthermore the Company's business is continuing to progress organically. Examples of this include the signing of a new contract with DataCash (DATA.L) and other clients reaffirming their commitment and increasing their levels of business with the Company.
Board Changes
On 15 September 2008, Lance Browne CBE was appointed as a Non Executive Director. Lance is Vice Chairman of Standard Chartered Bank (China) Limited.
On 26 September 2008, Lady Olga Maitland was appointed as a Non Executive Director. Lady Olga is CEO of Money Transfer International Association Limited (MTI).
In addition on 26 September 2008 Peter Chappell joined the Board as an Executive Director. He continues his role as Company Secretary.
Following the appointments of Lance Browne and Lady Olga Maitland, Jonathan Hill stepped down from the Board as a Non Executive Director on 26 September 2008.
Outlook
The current economic environment has led to the Company witnessing longer timeframes in the progression of its contracts. This has been combined with increased periods of integration in house as the banks' attentions have been diverted elsewhere. The Company's growing customer base continues to show support for the Earthport offering and while it is impossible to predict the bottom of the market in terms of timing of take up of our services, the Company continues to drive forward discussions, negotiations and integrations. The Company is also in the process of expanding its direct network coverage to Russia, Latin America and Africa, having delivered new services in Europe, Asia-Pacific, the GCC and Canada. The management remain confident in the future prospects for Earthport and its products.
A conference call will be held today at 8:30am on +44 (0)1452 569 393.
