Press release
HiPay: 2019 financial results
Paris, March 27, 2020: HiPay (ISIN code FR0012821916 - HIPAY), the fintech specialized in Omnichannel payment solutions, announces its results for the year 20191.
In millions of euros
2019¹ | 2018 | Var. (%) | |||||||
pro forma | |||||||||
Consolidated Income Statements
Transaction Volume | 3 893 | 2 844 | +37% | ||||
Revenue | 34.9 | 28.8 | +21% | ||||
EBITDA | 0.1 | -3.3 | n.d. | ||||
Operating income | -3,9 | -5.5 | -29% | ||||
Net income | -5.7 | -8.4 | -32% | ||||
Consolidated Balance Sheets | |||||||
Shareholders' equity | 36.8 | -13% | |||||
42.5 | |||||||
Available cash | 1.6 | 2.7 | -41% | ||||
Commenting on the results, Grégoire Bourdin, CEO of HiPay, said: "2019 marks another year of growth for HiPay whose medium-term objective is to achieve operational profitability, while maintaining a high-level quality of service and innovation. Operational expenses remain under control, and cash-burn is halved between 2019 and 2018. Faced with the COVID-19 crisis, the teams are mobilized to provide the best support for our customers. HiPay is currently implementing all available levers to cushion its impact."
1 The annual and consolidated accounts, which were approved by the board of directors of HiPay Group SA on March 26th, 2020, have been audited and the corresponding certification report is being issued. The annual financial report on the accounts closed on December 31st, 2019 will be available in the coming days on the website www.hipay.com in the "Investors" section.
Press release
Revenue
The 2019 turnover stood at €34.9 million, an increase of 21% (+3 points of growth vs. 2018). This activity increase reflects the success of the commercial strategy implemented for 2 years now, which is focused on the acquisition of new customers and supporting the growth of existing ones (+156 large account customers in 2019), and translated in €3.9 billion in flows in 2019, an increase of 37% compared to 2018 (+7 points of growth vs. 2018).
The turnover rate stood at 0.9%, down 0.1 points compared to 2018, which is explained by the growing share of large accounts in the client portfolio.
The French market, which accounts for 65% of all processed volumes, is once again the driving force for growth, with an increase of +56% in volumes.
The iGaming market is marking time in 2019, with only +1% of growth in processed volumes following a regulatory tightening in Belgium.
Profitability
The group's operating income stood at -€3.9 million compared to -€5.5 million on December 31st, 2018, an improvement of €1.6 million (+30%). This change is explained by:
- The €7 million growth in turnover.
- The upkeep of the rate of direct transaction costs on turnover.
- Reasoned growth in payroll (+€0.9 million, +7% vs. 2018).
- The stabilization of operating expenses and of depreciation and impairment (-€0.05 M, - 0.6% vs. 2018).
These results were possible thanks to the pursuit of technological investments and the rational management of operational costs.
Net income
Net income is in clear progression at -€5.7 million in 2019, compared to -€8.4 million in 2018.
Balance sheet and cash position
As of December 31st, 2019, the cash balance amounted to €1.6 million. Added with the available balance on the first associate BJ Invest current account, the total available cash amounted to €2.5 million.
The latest cash flow forecasts show a need for additional financing of €3 million. In order to offset this financing need, BJ Invest, the reference shareholder of HiPay Group, has provided an additional financing capacity of €5 million.
As of December 31st, 2019, HiPay's equity stood at €36.8 million.
Press release
COVID-19
The various health security measures requested by the authorities have been applied to all employees. Telecommuting was strongly encouraged before the measures were announced by the President of the Republic, which enabled all staff to prepare for this new work organization, in order to guarantee continuity of operations for HiPay and its customers.
The Business Continuity Plan has been implemented and allows the company's activities to operate under good conditions. A crisis unit made up of executive committee members has been set up to detect and assess the difficulties specific to this situation.
This crisis, depending on its duration and the evolution of consumer behaviour on the different verticals, will have an impact on turnover, profitability and generated cash. Additional analysis are underway and the activity forecasts will be updated accordingly.
Appointment of a new independent administrator
During the general assembly that will take place to decide on the capital increase project, it will also be proposed to shareholders to appoint Ms. Stéphanie Le Beuze as independent administrator of the company, for a period of four years.
Stéphanie Le Beuze has a triple expertise in finance, innovation and artificial intelligence, three strategic areas for HiPay.
She spent the first ten years of her career leading several projects related to risk management in complex regulatory environments. Stéphanie then participated, within various French and international banks, in setting up LBO and private equity investment operations. Since 2011, Stéphanie Le Beuze has launched several innovative startups and supported them in their commercial development in France and abroad, as well as in their fundraising.
For the past two years, Stéphanie Le Beuze has dedicated herself to launching a consulting company, scient.fr, specializing in Product management, data and artificial intelligence.
Stéphanie is a graduate of ESCP and MIT Sloane (Artificial Intelligence).
Next financial communication: May 15th, 2020 - General Meeting Results
Press release
About HiPay
HiPay is a global payment provider. By harnessing the power of payment data, we participate in our merchants' growth by bringing them a 360° vision of their activities.
More information on hipay.comand find us on LinkedInand Twitter
HiPay Group is listed on the Euronext Paris Compartment C (ISIN code: FR0012821916 - Mnemo: HIPAY).
Press Contact
Emmanuel Chaumeau
press@hipay.com
This press release does not constitute an offer to sell or the solicitation of an offer to buy HIPAY securities. If you would like more complete information about HiPay Group, please refer to our website hipay.com, Investors section. This press release may contain certain forward-looking statements. Although HiPay Group believes that these statements are based on reasonable assumptions as of the date of this press release, they are by their nature subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by these statements. HiPay Group operates in a highly evolving sector in which new risk factors may emerge. HiPay Group does not undertake any obligation to update these forward-looking statements to reflect new information, events or other circumstances.
Press release | ||||
Appendix 1/3 | ||||
P&L | ||||
in thousands of Euros | Notes | December 31st, | December 31st, 2018 | |
2019 | ||||
Sales | 34 872 | 28 816 | ||
Direct costs | - 17 442 | - 13 793 | ||
Payroll charges | Note 4 | - 12 321 | - 11 470 | |
General expenses | - 4 986 | - 6 851 | ||
EBITDA | (1) | 124 | - 3 298 | |
Depreciation and amortization | - 4 041 | - 2 229 | ||
Current operating profit | - 3 917 | - 5 527 | ||
Stock based compensation | - 112 | - 44 | ||
Other non-current income and charges | - 704 | - 91 | ||
Operating profit | - 4 733 | - 5 662 | ||
Other financial income and charges | Note 5 | - 952 | - 2 309 | |
Earning of the consolidated companies | - 5 684 | - 7 971 | ||
Earnings before tax of the consolidated companies | - 5 684 | - 7 971 | ||
Income Tax | Note 6 | - 66 | - 446 | |
Net income from continuing operations | - 5 750 | - 8 417 | ||
Including minority interests | - | 0 | ||
Including Group share | - 5 750 | - 8 417 | ||
Net income from operations sold | - | - | ||
Net income | - 5 750 | - 8 417 | ||
Including minority interests | - | 0 | ||
Including Group share | - 5 750 | - 8 417 |
Press release | |||||
Annexes (2/3) | |||||
Balance Sheet | |||||
ASSETS - in thousands of Euros | Notes | December 31st, | 01/01/2019 | Impact IFRS 16 | 31/12/2018 |
2019 | restated | published | |||
Net Goodwill | Note 7 | 40 222 | 40 222 | - | 40 222 |
Net intangible fixed assets | Note 8 | 4 901 | 4 654 | - | 4 654 |
Net tangible fixed assets | Note 9 | 8 667 | 8 205 | 6 943 | 1 262 |
Deferred tax assets | Note 10 | 1 434 | 1 429 | - | 1 429 |
Other financial assets | Note 11 | 1 320 | 401 | - | 401 |
Non-current assets | 56 545 | 54 911 | 6 943 | 47 968 | |
Receivables and other debtors | Note 12 | 2 218 | 648 | - | 648 |
Other current assets | Note 13 | 76 384 | 60 893 | - | 60 893 |
Cash and cash equivalents | Note 14 | 1 557 | 2 662 | - | 2 662 |
Current assets | 80 159 | 64 203 | - | 64 203 | |
TOTAL ASSETS | 136 704 | 119 114 | 6 943 | 112 171 | |
LIABILITIES - in thousands of Euros | Notes | December 31st, | 01/01/2019 | Impact IFRS 16 | 31/12/2018 |
2019 | restated | published | |||
Share capital | 54 505 | 54 505 | - | 54 505 | |
Premiums on issue and on conveyance | 15 495 | 15 495 | - | 15 495 | |
Reserves and retained earnings | - 27 470 | - 19 097 | - | - 19 097 | |
Consolidated net income (Group share) | - 5 750 | - 8 417 | - | - 8 417 | |
Shareholders' equity (Group share) | 36 780 | 42 486 | - | 42 486 | |
Minority interests | - 0 | - 0 | - | - 0 | |
Shareholders' equity | 36 780 | 42 486 | - | 42 486 | |
Long-term borrowings and financial liabilities | Note 15 | 15 820 | 14 557 | 6 943 | 7 615 |
Non-current Provisions | Note 16 | 616 | 644 | - | 644 |
Deferred tax liabilities | - | 1 | - | 1 | |
Non-current liabilities | 16 436 | 15 202 | 6 943 | 8 259 | |
Short-term financial liabilities and bank overdrafts | 45 | 143 | - | 143 | |
Suppliers and other creditors | 4 889 | 4 938 | - | 4 938 | |
Other current debts | Note 17 | 78 553 | 56 344 | - | 56 344 |
Current liabilities | 83 487 | 61 426 | - | 61 426 | |
TOTAL LIABILITIES | 136 704 | 119 114 | 6 943 | 112 171 |
Press release | |||
Annexes (3/3) | |||
Cash Flow Statement | |||
in thousands of Euros | Notes | December 31st, | December 31st, |
2019 | 2018 | ||
Net income | -5 750 | -8 417 | |
Adjustments for: | |||
Depreciation of the fixed assets | 2 215 | 2 171 | |
Depreciation of fixed assets IFRS 16 | 1 395 | 0 | |
Other elements without impact on the cash | -87 | 92 | |
Cost of debt IFRS 16 | 351 | 0 | |
Financial income and charges | 124 | 51 | |
Take away earn out | 0 | 2 000 | |
Result on sale of equity securities | 0 | 239 | |
Net income on disposals of fixed assets | 8 | 0 | |
Costs of payments based on shares | 112 | 44 | |
Tax charge or proceeds | Note 6 | 63 | 445 |
Operating profit before variation of the operating capital need and provisions | -1 569 | -3 375 | |
Variation of the operating capital need | Note 18 | 2 460 | -3 289 |
Cash flow resulting from operating activities | 891 | -6 664 | |
Interest paid | -124 | -51 | |
Tax on earnings paid | -377 | -883 | |
Net Cash Flow Resulting From continuing Operating Activities | 390 | -7 598 | |
Net Cash Flow Resulting From operating activities of divested operations | - | 0 | |
Net Cash Flow Resulting From Operating Activities | 390 | -7 598 | |
Acquisition of fixed assets, debt | -3 718 | -3 500 | |
Variation of financial assets | -919 | -486 | |
Effect of the perimeter variations | - | 0 | |
Net Cash Flow Resulting From continuing investing Activities | -4 637 | -3 986 | |
Net Cash Flow Resulting From operating investing of discontinued operations | - | 0 | |
Net Cash Flow Resulting From Investing Activities | -4 637 | -3 986 | |
Repurchase of own shares | - | 0 | |
Minority transactions | - | 0 | |
New borrowings | 4 643 | 6 284 | |
Loan repayments | -237 | -168 | |
Repayment of rent debt IFRS 16 | -941 | 0 | |
Other financial liabilities variation | -225 | 0 | |
Dividends paid to minority interests | - | 0 | |
Net Cash Flow Resulting From continuing Financing Activities | 3 240 | 6 116 | |
Net Cash Flow Resulting From Financing Activities | 3 240 | 6 116 | |
Effect of exchange rates variation | - | 0 | |
Net Variation Of Cash And Cash Equivalents from continuing Activities | -1 007 | -5 468 | |
Net Variation Of Cash And Cash Equivalents from divested operations | - | 0 | |
Net cash on January 1st | 2 519 | 7 987 | |
Net cash at the end of the period | 1 512 | 2 519 |
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Disclaimer
Hipay Group SA published this content on 27 March 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 March 2020 07:37:03 UTC