Harvest Technology plc - Market Update

On 3 June 2022, Harvest Technology plc provided an update on the outlook for its business. In this respect, the company explained that in the ‘Payment Processing Services’ segment, both revenue and profitability are expected to be lower in 2022 when compared to the 2021 financial year reflecting increased scrutiny from a regulatory perspective and additional licensing requirements mandated on the operators in online gaming which is impacting the partnering bank commissions receivable. Elsewhere, while the ‘Retail and IT Services’ segment is expected to generate better revenue performance due to new contract wins, profitability is expected to be in line with that achieved in 2021. Furthermore, the performance of this business segment is being impacted by some contracts that are experiencing delays due to global supply chain issues and also delays in the award of certain tenders.

Harvest noted that despite the prevailing challenges, it continues to invest in the organic growth of its different businesses, notably in the expansion of the payment processing business in Greece and the internationalisation of the IT Services segment. Based on the current forecasts, the company is expecting to achieve higher revenues but its profit before tax to drop by around 25% to circa €3 million compared to the €4 million figure recorded for the 2021 financial year.