Vipera Plc (LON:VIP), the specialist provider of mobile financial services, has today announced a trading update in respect of the year ended 31 December 2017.
Group revenues for the year increased 27% to €10.1 million (2016: €7.9 million). Part of the revenue growth is attributable to the acquisition of SoftTelecom Desarrollos I Mas D S.L. (“SoftTelecom”) in Spain, announced on 27 July 2017, but even without the contribution from SoftTelecom revenues would have increased by 20%, versus 16% for 2015/16.
Recurring revenues (being per-user, loyalty and support & maintenance revenues) grew by 43% to €1.6 million (2016: €1.1 million).
Gross margins increased from 22% to 32%, in part from increased licence sales, but primarily from a larger scale of operations.
Adjusted underlying EBITDA for the year is expected to show a small loss for the year. This reflects, inter alia, €250,000 of transaction costs incurred in relation to the acquisition of SoftTelecom, additional costs were incurred in relation to the set up of a new subsidiary in Dubai to meet growing demand in the area, and foreign exchange movements. In addition, operating profit will be impacted by an evolution in the Group’s depreciation policy to depreciate capitalized intellectual property, absorbing a charge of €260,000 versus €39,000 for 2016.
Cash as at 31 December 2017 was €1.9 million (31 December 2016: €2.1 million). Trade receivables are higher, commensurate with the growth in revenues, but as a percentage of annual revenues, have declined slightly.
The Group’s revenue growth has come from both existing clients and new customer wins. The Board continues to look forward to the remainder of 2018 and beyond with great confidence, as the Group continues to expand its product offering within the evolving and growing mobile financial services market.
The Company intends to announce its financial results for the year ended 31 December 2017 in early May 2018.
Marco Casartelli, Vipera Plc Chief Executive Officer, commented: “I am delighted that Vipera has continued to show strong organic growth, which has been supplemented by the acquisition of Soft Telecom. It is also pleasing that the gross margin for the year has improved from approximately 22% to 32%. Whilst we have still made a small loss at EBITDA level, with the acquisition of Soft Telecom and the funding in place, Vipera is in a strong position to take advantage of the changing finance landscape in 2018 and beyond.”
