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Profits fall at Dalgety Bay fintech firm Ingenico

Ingenico and its service centre and customer distribution centre in Fife
Pic Greg Macvean - 21/12/2015 - 07971 826 457
Ingenico head office in Dalgety Bay
Ingenico and its service centre and customer distribution centre in Fife Pic Greg Macvean - 21/12/2015 - 07971 826 457 Ingenico head office in Dalgety Bay

Fife payment solutions group Ingenico saw profits fall by 15% last year.

The firm, based in Dalgety Bay, has more than 32 million terminals across more than 170 countries, with their chip and pin contactless technologies adopted by a number of major banks, retailers and financial service providers.

Turnover at Ingenico fell by 7% from £131.9 million in 2017, to £122.1 m for the year ending December 31 2018.

Pre-tax profits dropped by 15% from £28.6m in 2017, to £24.5m last year.

Director Ian Benn described the fall as “in line with expectations” as the first half of 2017 continued to see significant revenues generated from customers refreshing their technology to remain compliant with industry standards, but the revenue stream “would not be expected on an annual basis.”

Mr Benn said: “In 2018 the company maintained its leading position in payment terminals in northern Europe with the continued roll out of its latest product and solution range.

“This included the delivery and roll out of Axis, Ingenico’s own managed payment service, which represents one of our biggest growth areas.” He added.

The firm continues to monitor and review the political discussions around Brexit, however the probability of a significant financial impact is described as “low”, with the company already importing products from outside Europe, it is already set up for customs trading.

In September, Ingenico announced a deal with high-street icon M&S to implement a new payment service that will cover touch points and digital channels for the retail icon.

Staff numbers at the firm rose from 400 in 2017, to 485 last year with 348 in production related roles, 43 in administration and 94 in distribution.

Salaries and associated payroll costs rose from £16.8m in 2017, to £21m last year.

The UK and Ireland remains the largest geographical market, delivering £89.1m for the firm, followed by the rest of Europe attracted £32.6m.

Looking to the future, Mr Benn identified a number of key areas of strategic development for the business, including winning new and replacement business, along with developing new markets.

“New products continue to be developed for both new and existing markets, process efficiencies have been gained and new initiatives for efficiency improvements are constantly being developed.” He added.

The Fife operation at Donibristle Industrial Park is the group’s Northern Europe headquarters.

jimillar@thecourier.co.uk