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UKHotViews©

 

Wednesday 11 July 2018

Further focus key for PCI-PAL

logoThe decision of PCI-PAL to focus the activities of this customer engagement business on the supply of secure payments systems looks to have been the right one. In October the company launched its AWS-based platform, new channel partners have been enlisted and the flow of contracts, both new and re-signs, appears encouraging. In addition, the US operation has been launched and scaled up, enabling access to a market which is 4-5x larger than the UK and desperate for more secure management of payments.

The positive messages of the “strong first half” about top line prospects have continued for the full year according to today’s trading update. 15 customers have signed up to use the new platform and interest continues to build. The pipeline of qualified sales opportunities has doubled to £22.4m. Over the year 48 contracts were signed, of which 30 were via channel partners, with PCI-PAL signing up Capita Pay 360 and US payments provider NewVoiceMedia as resellers.

Nevertheless, the company’s share price now stands at around half its December level. Pre-tax losses at the first half had more than doubled over the previous year, to £1.6m, on revenue of just £1m. Indirect costs had doubled to £2m. Further investments in product development and sales and marketing, particularly in the US, will have weighed heavily on results in the second half.

So further focus is needed – to accelerate the improvement of the bottom line. The company is right to build channel partnerships to drive scale, but recognises that this will take time. Average contract values seem low, at £10-20k per deal. Some of these may represent sprats to catch mackerel but greater focus on larger opportunities is likely to pay dividends. We should learn more as full results are published in early September.

Posted by Peter Roe at '09:07' - Tagged: security   callcentres   payments  

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