PCI-PAL no longer expects to report FY adjusted pre-tax profit

28th Aug 2024 09:22

(Sharecast News) - Payment solutions firm PCI-PAL said on Wednesday that it no longer expects to report an adjusted pre-tax profit for FY24 due to the timing of revenue recognition related to a specific customer.

PCI-PAL stated reported revenue was predicted to be 20% higher at £18.0m - £700,000 below previous expectations, with the majority of the shortfall relating to a specific project where the customer has paid in full and, in the board's opinion at the time, the company had delivered the services and revenue could be recognised in FY24.

However, the AIM-listed group noted that following the commencement of its annual audit, and discussions with its auditors, it had decided it was appropriate to defer the payment in respect of this specific project from FY24 into FY25.

Accordingly, PCI-PAL now expects to report an FY24 adjusted pre-tax loss of approximately £600,000, with an adjusted EBITDA profit of around £900,000. PCI-PAL added that it had achieved an adjusted free cash inflow of approximately £900,000, resulting in a "strong" year-end balance sheet, with net cash of £4.3m.

As of 1100 BST, PCI-PAL shares were down 7.48% at 53.20p.

Reporting by Iain Gilbert at Sharecast.com