SafeCharge trading in line with expectations as it targets tier one customers

2nd Dec 2016 12:18

(ShareCast News) - Mobile payment provider SafeCharge International said it was trading in line with expectations as it as it moves to gain tier one customers.The AIM-listed company said that trading ahead of the financial year end was "strong" and that full-year results are expected to be in line with market expectations, while its strategy to win tier one customers in both traditional and new markets was making considerable progress.Within traditional markets, the company is benefiting from increasing revenues following recent tier one client wins including PaddyPower Betfair, Sun Bingo and Sisal.In new markets, the company is now processing European card transactions for Nayax, a vending machine payment provider, with over 100,000 terminals worldwide. Broker Shore Capital said this is the company's first major move into physical point of sale with potentially significant volume flows.In parallel, the rollout of its payments service for Israel's national airline, EL AL is on track.The company is also launching into new European markets in Italy, Romania, Portugal and Poland,and opened a new office in Singapore.Looking ahead, the company said it will enter the new year "having expanded its tier one customer base, with customers in new sectors, including travel; retail and unattended point of sale, new markets and with a strong pipeline which provides confidence for 2017 and beyond."Shore Capital said it believes that both transaction volumes and acquiring services continue to gain traction with strong growth achieved, driving underlying revenue growth rates and operating margins."We also note a continuing process of vertical and regional diversification, improving revenue and earnings quality, in our opinion."Shares in SafeCharge International were up 2.66% to 227.39p at 1203 GMT.