Mi-Pay restructure leads to reduced operating loss

16th Sep 2015 13:35

(ShareCast News) - Despite a restructure and an increase in investment, Mi-Pay Group has increased their revenue marginally from £1.4m to £1.5m for the six months to 30 June.However the mobile payment solutions provider's operating loss has decreased from £3.0m last year to £1.1m.A 38% reduction in headcount over the last 12 months has also contributed to general and administration expenses dropping by £0.7m to £1.2m.Chairman of Mi-Pay Group Seamus Keating says the company has continued to see core transaction volumes grow, which drove increased revenues primarily from developing relationships with existing clients.The company's gross margins have increased after insourcing their fraud management capability and cutting general and administration expenses."These reductions have all combined to deliver a £0.7 million improvement in Adjusted Operating Loss over the period when compared to the same period in 2014," said Keating."The continued month by month reduction in losses and cash burn, combined with the £1.75 million new equity investment in March 2015 and £0.3 million research and development tax credit for 2014 (received in August 2015), provides us with a strong cash platform which will enable us to continue to grow and invest and as such we remain on target to deliver positive trading cash flow in 2016"Mi-Pay has also increased the volume of transactions processed by 48%, and their trial of full online and on-device top up solutions with a major UK mobile network is ongoing.The company's shares dipped in the wake of the results, down 5.18% to 26.55p at 1013 BST.