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 2016. Group revenues for the year increased 16% to €7.9 million (2015: €6.8 million), following a strong second half performance. Growth was strong in both product related revenues and consulting, with both showing a 17% increase on the prior year, driven particularly by increased business from core customers. Support and maintenance revenue continues to accumulate and represented 12% of the group’s revenue in 2017.
Operating losses before provisions were in line with market expectations. In addition, as announced on 29 December 2015, the Company acquired an additional stake in Codd&Date. This was driven by the continued addition of new customers and projects, necessitating an increasingly smooth delivery of an increasing number of customer deployments and greater efficiencies within the Group. This Group reorganisation is expected to impact the valuation of the goodwill attached to the Company’s subsidiary operations, and although it will be provided for, there is will be no cash impact.
Net cash as at 31 December 2016 was €1.5 million, which is slightly below expectations and reflects trade receivables being higher at the year-end than projected. Since the year-end, the trade receivable balance has normalised and the Group remains well funded to continue investment in product development and to support the working capital needs of the Group through to cash flow profitability.
As mentioned above, the majority of the Group’s revenues growth came from deepening relationships with existing clients; however the Group has continued to win new custoemers and has a strong pipeline of new business, both through direct sales and channel partners. In 2017 growth is expected to be driven by a continued deepening of client relationships, together with the benefits from new customer wins. The Board continues to look forward to 2017 and beyond with great confidence, as Group continues to refine its customer proposition within the evolving and growing mobile financial services market.
The Vipera PLC directors intend to announce the Company’s financial results for the year ended 31 December 2016 in early May 2017.
