Trading Update

RNS Number : 0148X

IPPlus PLC

25 August 2015

 

IPPLUS plc (AIM: IPP)

Trading Update

IPPLUS PLC ("IPPLUS" or the "Group") is a diversified technology and business services organisation, serving a number of market sectors including retail, manufacturing, insurance, charity and export. The Group focuses on three main markets: call centre services, call centre software, and compliant credit card solutions designed to prevent credit card fraud.

As indicated in the Interim Results, business remained challenging and trading conditions continued to be volatile. For the financial year ending 30 June 2015, continuing business revenues are expected to be approximately £6.5 million and overall it has been a disappointing year for the Group.  

The Group's cash position has remained strong and ended the year at over £1,000,000. 

However, the Board is delighted to announce that, since the year end, PCI-PAL, our compliant credit card solution, has won two prestigious international contracts within the Jewellery and Logistics sectors and current year PCI-PAL prospects remain extremely positive. We expect to announce further PCI-PAL contracts in due course and anticipate other prospective clients to proceed slightly quicker, driven by concerns resulting from the high profile publicity surrounding data and credit card losses from several major organisations.

The Directors believe that these contract wins demonstrate the strong and growing demand for our PCI DSS compliant payment solutions. The new contracts are expected to generate revenue in the 2015/16 financial year, supporting growth within this trading division and helping to elevate our prominence in this sector.

In addition, the Ansaback call centre has also secured a significant contract with one of London's most prestigious department stores. Revenue from this contract is expected to be substantial. When the detail of the number of agent positions is fully known we will inform the market of the value ascribed.

CEO William Catchpole comments;

 "The new Ansaback and PCI-PAL contract wins should see the Group bounce back in the new fiscal year, whilst our strong cash position will enable us to pursue capital investment plans to support our growth strategies."

Outlook

As outlined, trading of the continuing business has progressed in a positive fashion and the Board is optimistic about the prospects for the year ahead.  The Group will announce its results for the year ended 30 June 2015 in the coming days.

The Group will also host an Open Day for current and prospective investors at its London office at 1 Cornhill Bank, London, EC3V 3ND.  The event will be held on 5 November 2015, from 10:00am to 1:00pm.  Attendees are requested to pre-register by emailing the Group at [e-mail].

Note:

The Payment Card Industry Data Security Standard (PCI DSS) is a proprietary information security standard for organisations that handle branded credit cards from the major card schemes including Visa, MasterCard, American Express, Discover, and JCB.

For further details, please contact:

IPPlus plc William Catchpole - Chief Executive Officer Stuart Gordon - Chief Financial Officer	[phone]
N+1 Singer (Nominated Adviser & Broker) Aubrey Powell Alex Wright Ben Griffiths	[phone]

 

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