Two UK-based
fintech companies specializing in foreign exchange and payment solutions, Equals
Group (LSE: EQLS) and Finseta (LSE: FIN), reported their financial results for the first half of 2024 today (Tuesday). In both cases, revenue and profits increased compared to the same period last year.
Equals Reports 33% Jump in
Revenue
Equals
Group, which focuses on enterprise and SME markets, saw
its revenue jump 33% to £60.0 million in H1 2024, compared to £45.0 million
in the same period last year. The company’s gross profit margin improved to
57.4% from 52.4%, while adjusted EBITDA increased by 30% to £12.7 million.
“This has
been another strong half for Equals, which continues to process transactions at
record levels with SME clients and larger corporates recognizing the value of
our well-invested proposition,” Ian Strafford-Taylor, CEO of Equals Group,
commented.
Equals Group Plc @meetequals #EQLS has published a new Regulatory News announcement.Please click on the below title to see the full release:Equals Group PLC – Interim Resultshttps://t.co/t1v3ZBASF3 pic.twitter.com/VgXey6OxDj
— Research Tree (@research_tree) September 10, 2024
The final
profit after taxation amounted to £5.2 million, translating to an 8% increase
from £4.8 million achieved in H1 2023. In the whole previous year, the
company more than doubled its profits, which amounted to £7.7 million.
The company
also reported that its B2B segment now represents 87% of total revenue, up from
83% in the previous year. In addition, Equls announced an interim dividend of 1
pence per share, reflecting confidence in its financial position and future
prospects.
40% Revenue Jump for
Finseta
Meanwhile,
Finseta, which offers multi-currency accounts to businesses and individuals,
reported a 40% increase
in revenue to £5.1 million for H1 2024, up from £3.6 million in H1 2023.
The company’s gross margin improved by 470 basis points to 65.7%, primarily
driven by an increase in the proportion of revenue from direct clients. Profit
before tax reached £0.6 million, rising from the flat results of the previous
period.
“This
has been a period of significant growth for Finseta, which builds on the work
we commenced last year to execute on our renewed strategy,” James Hickman, CEO
of Finseta, stated. “Through expanding our introducer network and payments
capabilities, while maintaining a high level of customer service, we have
increased the number of active customers and average transaction value.”
🚀 @Finseta_PLC’s interim results for H1 2024 show a 40% revenue jump! 📊 CEO James Hickman & CFO Judy Happe will present live today Sep 10, 10am BST. Join us to explore the highlights and our roadmap ahead! 👉 Register for free: https://t.co/9SX3QwGEOo #Finseta #InvestorUpdate pic.twitter.com/0ExlV680KP
— Finseta (@_finseta) September 10, 2024
Both
companies highlighted strategic developments that are expected to drive future
growth. Equals Group completed the automation of its ‘payment sending service’
for outbound payments and achieved functionality parity between its UK and
European operations. Finseta, on the other hand, received regulatory approval
to provide payment services in Canada and signed an agreement with Mastercard
to launch a corporate card scheme later in 2024.
“Looking
ahead, the strong trading momentum that was experienced during the first six
months of 2024 has been sustained into the second half and we are on track to
report significant growth for full year 2024, in line with the Board’s
expectations,” added Hickman.
This article was written by Damian Chmiel at www.financemagnates.com.
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