WAG Payment Solutions PLC on Thursday reported lower pretax profit in the first half of 2023, partly due to acquisition costs.

Known as Eurowag, the UK-based company operates a pan-European payment platform for trucks.

Pretax profit fell 37% to €8.5 million in the six months that ended June 30 from €13.4 million a year prior.

Explaining the lower profit, Eurowag cited higher depreciation costs from its capital expenditure programme, the inclusion of new acquisitions, and higher interest costs after it bought Grupa Inelo SA.

Eurowag in March completed the purchase of fleet management solutions and work time management provider Grupa for €306 million.

Adjusted earnings before interest, tax, depreciation and amortisation rose 44% to €50.2 million from €35.0 million.

Revenue from customer contract declined 12% to €1.02 billion from €1.16 billion, but net revenue - after deducting costs of energy sold - rose by 37% to €119.1 million from €87.0 million.

Chief Executive & Founder Martin Vohanka said Eurowag faced ‘macroeconomic headwinds across Europe which are impacting the commercial road transport industry through a notable slowdown in freight demand, in turn delivering a reduction in kilometres driven.’

Looking ahead, Eurowag expects revenue percentage growth to return to high-teens in the medium-term.

‘The next two years are important to us, with the delivery of the integrated platform as well as the transformation of the business, including the integration of those businesses we have acquired recently,’ the company said.

‘With further growth opportunities through cross-sell and geographic expansion, and the value we see being unlocked for customers through the new platform, we are confident that we can continue to deliver strong growth for all stakeholders.’

Eurowag shares were down 1.3% to 91.40 pence each on Thursday morning in London.

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