SafeCharge has just announced the company’s final results for 2017. The firm generated revenues of $111.7 million, a figure which is higher by 7 percent when compared to last year. The growth was realised after the firm committed to change its client mix in 2016 and commit to companies that are generating revenues in the long run.
Profit grew by 6 percent, reaching $64.5 million, with the adjusted EBITDA increasing by 1 percent, reaching $33.7 million. Cash conversion remained solid, with cash flows from operations totalling $32.3 million, while free cash flow was $20.5 million. Profit after tax was $23.8 million which is slightly lower than 2016.
SafeCharge processed a record number of transactions in 2017, reaching 173.8 million. The number was higher by 38 percent year-on-year, with the value growing by 19 percent. The total volume of transactions reached $9.6 billion.
Amid the shifting client mix, the gross profit margin of SafeCharge decreased slightly to 57.8 percent, which is a drop of 0.5%.
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Operating activities generated $32.3 million of cash flow with free cash flow totalling $20.5 million, which is a cash conversion of 83%.
Client Mix Shift
The company has shown material resilience to the shift in the client mix that it started back in 2016. The firm decided that it was prudent to reduce exposure to certain sectors and markets as it prepared for a shift in the regulatory environment.
According to an estimate made by the board of SafeCharge, these sectors generated revenues and gross profit of US$8.7 million and US$5.1 million, respectively, in 2016.
During this period SafeCharge further developed its strategic partnership with Saxo Payments in cross border settlement. The company also partnered up with YelloCo, which has developed a new generation of payment terminals. Back in February 2018, the firm invested a further $18.5 million in Nayax, which is providing global cashless payment solutions.
API Development and Outlook
Commenting on the company’s results, the CEO of SafeCharge, David Avgi, said: “The Group has a robust and scalable platform that can accommodate transaction volumes over 10 times greater than currently processed. Management remains committed to rolling-out its technology-based solutions to new markets and, as such, has a number of priorities for 2018 and beyond.”
Apparently those priorities include the development of an API which will allow merchants to deploy the payment solution of SafeCharge much faster. The company is also committed to further development of its e-marketplaces and SME payments systems as well as local service and account teams.