Financial Highlights
*Revenue grew by approximately 5.3% to £31.9 million (FY 2017: £30.3 million)
* Adjusted gross margin decreased by 1.2% to 67.1% compared to 68.3% in FY 2017 due to network delivery costs and mix of business
* Administrative expenses increased by approximately 9.1% to £28.8 million (FY 2017: £26.4 million), representing 90% of revenues (FY 2017: 87%)
* Adjusted EBITDA loss increased by approximately £1.9 million to £4.8 million (FY 2017: £2.9 million)
* Cash Balance at 30 June 2018 amounted to £28.3 million, compared to £11.9 million at 30 June 2017. This includes net proceeds of £24 million raised in October 2017.

Summary
FY 2018 has proven to be a challenging year for Earthport, with delays in implementation of client contracts and a change at one of the Group’s leading e-commerce clients announced in December 2017. Despite this, revenue grew by 5.3%, with approximately 10.5 million transactions undertaken on the Earthport platform (FY 2017: 11.0 million) with a transactional value of $16.9 billion (FY 2017: $17.5 billion). The adjusted gross margin decreased to 67.1% (FY 2017: 68.3%), due to network delivery costs, geographical mix of transactions and the associated differences in transaction price per corridor, in line with management’s expectations.

During the financial year, Earthport has continued to invest in its sales and relationship management teams to support its expanding network and clients, which now covers 88 countries, a 35% increase in international routes during the year.

As stated in the interim report, the Board’s focus has been on delivering improvements to the Group’s cost base and operational efficiency and, as a result of our continuing investment the adjusted EBITDA loss for the year increased by £1.9 million to £4.8 million (FY 2017: £2.9 million), which is below than previously expected. The Group’s cash balance at 30 June 2018 was £28.3 million, enabling us to continue investing strategically where needed.

In March, Earthport announced that its wholly owned subsidiary, Earthport North America, Inc. received a New York State money transmitter licence. Management is in the process of developing a plan for new commercial opportunities and expansion of this offering to capture commercial opportunities in New York state in relation to FX services. The Group continues to work towards acquiring additional state licences enabling further expansion in the United States.

Amanda Mesler assumed the role of CEO on 1st July 2018, bringing with her a wealth of global experience, growing technology enabled businesses and bringing value to all stakeholders. She is developing the growth strategy for the company over the coming months.

With effect from 1st July 2018, Phil Hickman has reassumed his role as Non-Executive Chairman of the board following his role as Interim CEO and Hank Uberoi has stepped down from the Executive Chairman position but remains on the board as a non-executive director with Senior Advisor responsibilities.