In recent weeks we have seen a steady increase in cards issued, despite the pre-paid card programme announced on 9 July 2019 remaining at zero cards in issue. The number of pre-paid cards issued to date has fallen short of the figures mentioned in the announcement of 17 September 2019 due to delays experienced by a major client in commencing the project. No material level of cards has been issued to this client to date, and the target date for the full issue has been extended to the end of January. The uptake of the new payment account service (as announced on 17 September 2019) is promising, with a number of Euro accounts open and a handful of beta clients about to begin testing U.K. format Sterling accounts.
These accounts are linked via our technology to the An-Other card, giving clients the opportunity to use them in a similar fashion to a debit card, or to opt for fixed limits on balances which require topping up as they run low.
While the Payment Division is making progress, it is much slower than the Board had hoped. In particular, no merchant services are currently being processed due to issues with the nature of traffic from clients onboarded during July and August that remain in progress. As a result, the Payment Division continues to be lossmaking.
PPSL has continued to grow since the end of the half year and it remains on course to deliver a positive contribution to the Group during the second half of this financial year, however this is not sufficient to offset the losses in the Payment Division.
The Board therefore does not currently expect an improvement on the financial performance during the second half of the year and the Group’s working capital position remains constrained.
Full report can be found here