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12 Aug 2019 | 08:23

Mi-Pay warns on profits; likely to lose major client

Payments company Mi-Pay warned that its annual earnings would fall short of current market expectations and that it could also be about to lose one of its major clients.

Trading in the first half of 2019 had met the company's expectations, with revenue seen rising to £1.7m for the period, up from £1.6m on-year, and Ebitda coming in at around break even.

However, Mi-Pay said it expected trading in the second half to be hit by the adoption of new European regulations and the current economic climate.

'As a result, trading for the full year is expected to be behind current market expectations,' it said.

In addition, Mi-Pay said that a client that provided about 13% of its revenue in 2018 was 'likely' to consolidate services provided to the company to a rival.

'The company does not know when this will occur, however, should it become effective, it is expected that the company will no longer generate revenues from this client going forward,' Mi-Pay said.

'Until the client ceases to utilise the company's services, it is not known what the financial impact of the client loss will be on the company's trading for the current year. '

'The board will adjust the group's budgets and spending accordingly to mitigate the expected loss and will continue to develop the relationships with its long-term contracted clients to drive growth.'

At 8:23am: (LON:MPAY) MiPay Group Plc share price was 0p at 9.5p

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