The deal is the Group's first in Germany, "an important milestone" in its growth in Europe.
Companies: Earthport
Earthport (AIM: EPO) has announced today its agreement with the Swiss Euro Clearing Bank (SECB) to provide its SWIFT payment services for SECB's Swiss bank clients.
The contract with SECB, who processes transactions in Euros for banks and business with Swiss bank accounts, sent shares in EPO up 5% in early trading this morning.
The deal is the Group's first in Germany, marking an "important milestone" in the Company's growth in Europe.
Earthport CEO Hank Uberoi commented on the deal, saying:
"We are committed to developing our presence in Germany, Europe's largest economy, and to bringing the efficiency, security and transparency of the Earthport payment network to businesses in the region."
News of the deal comes a week after the Group announced it was looking to raise "not less than £25m" through a placing of shares to expand market presence, for product development, and for investment in its platform to "ensure scalability".
The Group's corporate broker N+1 Singer released a note today saying that whilst this deal will not impact its forecasts, they were raised off the back of last week's proposed fundraising news, saying:
"We believe the fundraise will place the group on an enhanced growth trajectory, delivering revenue CAGR of 33% over our forecast period and generating significant cash as the model matures. Our conservative DCF calculation results in an intrinsic value of 68p, offering significant upside from the current level."
Revenue CAGR for the five years to 2016 has been 55% YoY whilst Net Losses have averaged roughly £7m. Net Losses are, however, forecast to flatten out in FY17 at c. £5m and be reduced to c. £0.1m in FY18.
