Harvest Technology plc - Interim Results

On 8 August 2024, Harvest Technology plc published its interim financial statements covering the six-month period ended 30 June 2024.

Revenues surged by 21.6% to €9.09 million (H1 2023: €7.20 million) reflecting gains in both the retail & IT solutions segment (+27.6% to €6.96 million) and the payment processing services arm (+21.6% to €2.58 million).  Improved performance in payments and processing was attributable to the launch of the new Synthesis payment platform as well as an increased focus on onboarding new customers.  In this respect, the average monthly transaction volume was 30% higher than in 2023. Meanwhile, the retail & IT solutions segment was positively impacted by the completion of several significant projects, some of which were delayed from the previous year.

On the expenditure side, total operating costs increased by 17.6% to €8.60 million (H1 2023: €7.31 million), mainly driven by higher cost of sales. However, in view of the sharper rise in revenue than in operating costs, operating profit rose to €0.93 million compared to €0.3 million in the corresponding period last year. Meanwhile, the operating profit margin improved to 10.2% compared to 4.2% in the first half of 2023.  Excluding a depreciation and amortisation charge of  €0.44 million, EBITDA practically doubled to €1.37 million (H1 2023: €0.71 million).

After accounting for minimal net finance costs and a tax expense of €0.31 million, Harvest recorded a net profit for the period of €0.61 million (H1 2023: €0.18 million) which translates into an annualised return on average equity of 8.6% compared to 2.7% in the corresponding period last year.

The Statement of Financial Position as at 30 June 2024 when compared to the position as at 31 December 2023 shows that total assets grew by 0.8% (or €0.16 million) to €20.8 million, which includes a cash balance of just under €2 million. Meanwhile, total liabilities decreased by 5% (or 0.33 million) to €6.24 million despite the company undertaking minimal short-term borrowings. Shareholders’ funds rose by 3.5% (or 0.49 million) to €14.6 million.

Dividend

The Directors of Harvest Technology plc declared a net interim dividend of €0.03 per share which is 50% higher than last year’s interim dividend of €0.02. The dividend is payable on 30 August 2024 to all shareholders as of the close of trading on 14 August 2024.

Outlook

In their commentary, the Directors explained that the Group has an optimistic outlook for the second half of the year, as both APCO Limited and PTL Limited are anticipated to finalise their ongoing projects, which are expected to translate into higher revenue and profit recognition. Moreover, the Group remains committed to investing in further expanding its payment processing business and internationalising the retail and IT solutions segment.