One of the leading payment solutions providers catering to the forex, gaming and binary options industries, Safecharge, has reported its first post-IPO results. The company issued an announcement detailing its operating metrics for the first half of 2014, which ended on the 30th of June.
According to the announcement, the firm has seen a significant uptick in transaction processing volumes. Revenues shot up by 77% to $34.4 million, while gross profits were higher by 78% to $20 million. The adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) metric more than doubled to $10.8 million, which is higher by 117% when compared to a year ago.
The firm has reported that it will distribute an interim dividend of US 2.88 cents per share payable on the 17th of October. Safecharge boasts a solid cash balance totaling $142 million as of end of the reported period. The company’s board added in the interim results statement that current market expectations for the company’s full year results are materially below the company’s own forecast.
After initial trading on the Alternative Investments Market (AIM) of the London Stock Exchange, shares of the company shot up 5% to a new all-time high of 228 pence before retreating to 224 pence as of writing.
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Non-executive Chairman, Roger Withers, stated in the announcement, “The first half of 2014 was a landmark period for the Group. We completed a successful, oversubscribed IPO that was strongly supported by blue chip institutional investment funds and operationally, the business performed strongly, exceeding management and market expectations.”
Referring to Ladbrokes, FXDD and Gaijin, and the recently announced deal with VISA Europe, Mr Withers explained, “The company gained a number of significant new clients and post the period end secured a major advance with the award of principal member status for merchant acquiring by VISA Europe. This significantly complements the MasterCard membership approved in 2013 and enhances the company’s status as a leading global business in the expanding payment processing arena.”
Safecharge’s board appears confident in the company’s business with Withers continuing its statement saying, “Our growth is driven primarily by the growth of international internet penetration and the rapid development of e-commerce as a powerhouse in retail, financial services and currency trading platforms.”
He concluded by saying, “SafeCharge is well placed to capitalise on both its position in the payments industry and strong balance sheet. Our strong momentum and clearly identified growth opportunities mean that the Board looks to the future with strong confidence. SafeCharge is well positioned for sustained growth in a highly dynamic and rapidly evolving marketplace.”