SUPERB RESULTS

REG - Optimal Payments PLC - Interim Results19 Sep 2012 - 07:01

For best results when printing this announcement, please click on the link below: http://pdf.reuters.com/Regnews/regnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20120919:nRSS5828Ma RNS Number : 5828M Optimal Payments PLC 19 September 2012 Optimal Payments Plc Interim Results for the six months ended 30 June 2012 Strong first half growth, on track to exceed full year market expectations Optimal Payments Plc (LSE: OPAY) ("Optimal Payments", the "Group" or the "Company"), a leading online payments provider, today announces its results for the six months ended 30 June 2012. Highlights · EBITDA(1) up 76% to $11.2m (H1 2011: $6.4m). · Revenues up 37% to $78.9m (H1 2011: $57.4m). Fixed costs marginally down following headcount reduction in Q1. · Profit before tax $1.7m (H1 2011: loss of $4.1m). · Strong organic growth from NETBANX Straight Through Processing division ("STP"), up 68% to $61.9m (H1 2011: $36.9m) with continued strength and growth in Asia. · NETELLER Stored Value ("SV") revenues down to $16.2m (2011:$18.0m(2)) principally as a result of the fallout from Black Friday(3) in H1 2011. § Initiatives undertaken in H1 have produced improved results in second half to date. Major investment in NETELLER SV platform now complete and cost base aligned. § US online gaming opportunity taking shape. · Strong demand from existing customers and from new customers won during the first half including Ford Credit, Hockey Canada and Rona. Commercial agreement signed with Lotus F1 Team. · Strong H1 revenue exit run rate positions the Company for further growth in second half and on track to exceed the market consensus full year expectations. Financial summary (unaudited) Six months ended 30 June 2012 2011(5) US$ million US$ million Revenue Straight Through Processing (NETBANX bureau & gateway services) 61.9 36.9 Stored Value (NETELLER eWallet & Net+ cards) 16.2 18.0 Stored Value - discontinued revenues (4) - 2.1 Investment income 0.7 0.4 Total Revenue 78.9 57.4 EBITDA (1) 11.2 6.4 Profit/(loss) before tax 1.7 (4.1) Tax (charge)/recovery (6) (2012 charge relates to 2004/5 period) (2.5) 0.5 Net loss for the period (0.8) (3.6) (1) EBITDA is defined as results of operating activities before depreciation and amortisation and exceptional non-recurring items which are defined as items of income and expense of such size, nature or incidence, that in the view of management their disclosure is relevant to explain the performance of the Group. (2) Excluding discontinued revenues - see note 4. (3) "Black Friday" refers to the regulatory action taken in April 2011 against certain major poker operators which resulted in many players ceasing to play poker worldwide. (4) Discontinued revenues were derived from e-money expiry which is now subject to different rules under the Electronic Money Regulations 2011. (5) 2011 comparables include only 5 months of revenues and costs from the OP Inc business acquired on 1 February 2011. (6) Tax charge in the period relates to expected reassessment of 2004/5 Canadian taxes following a review by the Canadian Revenue Agency which commenced in 2005. The Board has made a full provision for the amount it believes it is likely to be required to pay in respect of withholding taxes and interest. See note 17 in the Financial Statements for more detail. Commenting on today's results announcement, Joel Leonoff, President & CEO, said: The combination of NETELLER and OP Inc. has produced a multi-faceted payment product offering and positioned the emerged business Optimal Payments Plc to benefit from a rapidly evolving online payment market. Our efforts have resulted in a fully integrated and right-sized business with an efficient cost base. Our operationally geared business model, continued focus on product development and R&D, along with our strong presence in the internet payment market have combined to produce significant organic revenue and EBITDA growth. Our H1 results and strong foundation position the Company well for further growth in H2. The online payment industry continues to consolidate and the Group should benefit from the expected significant growth in both the online and mobile commerce markets. We see substantial opportunities to provide innovative solutions to merchants and consumers in both the NETELLER eWallet and NETBANX

3 m HARRY's as old as Stonehenge !!!!

Assuming it goes ahead, dealing in the new shares would begin after the 5th May, so you would be free to sell any time after that. You (as a private investor) do not have to hold shares bought in a Rights Issue for a specific length of time.
Ah, but jimmy, how old is Stonehenge? No one really knows!
One thing that is annoying me slightly is that HMG keep pushing the retirement age back. I suppose they are hoping that I am not going to reach retirement age......ever!!!

Thanks again harrycat may be worth a risk for me then. mmmm!!!!! I managed to get the old age pension at 60, plus bus pass (not that I have used it yet). Wonder what today will bring with OPAY.

Jimmy - older!:-)

RIGHTS ISSUE
Optimal Payments plc has entered into an agreement to acquire Sentinel TopCo Limited and its subsidiaries from Sentinel Group Holdings S.A. (ultimately owned by Funds managed and advised by subsidiaries of CVC Capital Partners Sicav-Fis S.A, Investcorp Technology Partners, and other Shareholders) for a value of approximately EUR1.1 Billion (USD1.2 Billion). The cash consideration for the acquisition will be financed through a combination of available cash, new debt facilities and a fully underwritten Rights Issue.
Optimal Payments is proposing to raise approximately GBP451 Million through a Rights Issue. The Rights Issue has been fully underwritten and the Rights Issue are conditional upon the approval of Shareholders at the General Meeting, which is expected to be held on 16 April 2015. Completion of the acquisition is expected in the third quarter of 2015.
Terms: 5 New Ordinary Shares at GBP1.66 per Share for every 3 Existing Ordinary Shares held at the Record Date.
Relative Details and Dates:
14 April 2015 – Record Date,
16 April 2015 - General Meeting

Will be taking up my rights on this one. Already a multi-bagger but could indeed be transformational and risk reducing.

Four days to go to the record date for holders of stock. Sp sliding a little but no surprise there. More short term downside to come when new shares issued.

Results of Extraordinary General Meeting

An Extraordinary General Meeting of Optimal Payments plc (the "Company") was held on 16 April 2015 at 11.00 a.m. at The Forum, 17-18 Mount Havelock, Douglas, Isle of Man, IM1 2QG.

The ordinary resolutions to approve the Acquisition as a reverse takeover for the purposes of the AIM Rules for Companies, to enter into certain financing arrangements, to increase the authorised share capital of the Company, to authorise the Board of the Company to allot new ordinary shares and to disapply pre-emption rights, each in connection with the Acquisition and the Rights Issue and as set out in the notice of Extraordinary General Meeting contained within the Prospectus posted to shareholders on 23 March 2015, were duly passed at the Extraordinary General Meeting.

Admission of Nil Paid Rights
Optimal Payments plc (the "Company") announces that, pursuant to the Rights Issue announced on 23 March 2015, 272,495,506 New Ordinary Shares of 0.01 pence each will be admitted, nil paid, to trading on the AIM market of the London Stock Exchange plc at 8.00 a.m. today

Oh why, Oh why did I not sell some more yesterday - what a stupid woman I am!!!!

Don't worry, the fall is only due to the issue of the new shares.
Once the Rights Issue is complete the share price will recover. As you haven't sold, you will soon receive a message from your broker asking if you wish to buy your allocation of the new shares at a certain price (which should be around £1.66).
Don't forget to look at the big picture. You will have more shares at a much cheaper price which will give you a better average price over your complete holding.
Patience is required now as the process is completed, though you will need to decide if you want to buy the new shares or not at some point soon.

Thanks harrycat but my logic is if I had sold more at £5.00 odd I would have had the spare cash to invest in the rights issue!! I will sit patiently once again afte 9 long years another couple won't make much difference. Oh Happy Days. I will probably be pushing up the daisies by the time they recover again. Good Luck.

Funds ready and taking up all my rights. Instruction given.

3 monkies, I hope not! I wouldn't be surprised to see this double (and I'm not talking years).

Making up my mind, I do feel that you may be correct in (not talking years).

It's a bit of a coup in my opinion that OPAY has managed to acquire Skrill. Helps to de-risk OPAY and payment systems - gambling/retail/smartphone etc are only going to explode which is why I've gathered the funds and in for 100%. Also for this reason I've been adding SCH which is highly profitable and in a similar, though not identical space.

Am still waiting for my broker to let me know!!! RI allocation not yet appeared on my account .....but am happy to buy my allocation and wait a while.

Hargreaves Lansdown seemed on the ball and easy process to accept full or partial rights uptake. Harrycat, you going for the full allocation? What are your personal views on this one? Maybe I'm being too optimistic but having held some time I still see significant upside...

Yes, I will take up all of the RI and will then have a look to see what my average price is. I can't see myself hanging on too long after that, but it all depends on where the sp goes, broker targets & reports and no more scare stories from the CEO who was dumping stock in an (allegedly) improper way.

Quite agree - it will become my largest holding across my portfolios so assuming the price continues to head northwards I'll have to take some money off the table at some point. Trouble is, it could run...