Finseta
reported revenue of £12.4 million for the year ended December 31, 2025, marking
a 9% increase from the prior year’s £11.4 million. The growth rate represents a
significant deceleration from the 26% expansion the company achieved in
2024, when underlying revenue climbed to £11.3 million.
The
London-listed (LSE: FIN)
forex and payments provider ended the year with 1,101 active customers, up from
1,059 in 2024. The company
had already reached that customer count by mid-year, suggesting customer acquisition stalled in
the second half.
Finseta Corporate Business
Surges While Individual Clients Pull Back
Corporate
client revenue jumped 54% compared with 2024 and accounted for 57% of total
revenue, reversing the prior year’s mix when corporate accounts contributed
just 41%. The shift came as high-net-worth individual clients, who typically
generate higher margins, reduced activity amid global economic uncertainty
linked to tariff developments.
“While
our revenue growth was constrained by macroeconomic factors, the strategic
progress and investments we made during the year position us to broaden our
offering, accelerate sales growth and increase profitability in the medium
term,” CEO James Hickman said.
The
company’s gross margin compressed
to approximately 61% from 65.7% in 2024, reflecting the heavier weighting
toward corporate clients who transact at lower margins but with greater
frequency. Adjusted EBITDA dropped to £0.1 million from £2.0 million in the
prior year as planned investments in sales teams, compliance functions, and
overhead ate into profits.
Dubai Operation Ramps Up
Faster Than Anticipated
Finseta
received regulatory approval in March 2025 to provide payment services in the
United Arab Emirates through a Category 3D license from the Dubai Financial
Services Authority. The Dubai operation grew faster than the board initially
expected, prompting additional investment in the sales team to support
accelerated expansion in the region.
The company
established a new office in the Dubai International Financial Centre and began
hiring for sales and compliance roles to onboard corporate and professional
clients while building its partner network.
Management
expects the expanded UAE business to contribute positively to group
profitability starting in 2026.
During
2025, Finseta also established a full-service office in Canada, launched its
corporate card scheme, formed new counterparty partnerships, and implemented UK
agency banking in the third quarter. The agency banking capability allows
Finseta to issue its own account numbers and connect indirectly to the Faster
Payments System.
Cash Position Weakens as
Investment Cycle Continues
Cash and
cash equivalents stood at £1.5 million at year-end, down from £2.6 million
twelve months earlier. The company reported net debt of £0.3 million compared
with net cash of £0.6 million at the end of 2024.
The
deterioration primarily reflects reduced operating cash flow in 2025 and
approximately £1.1 million in cash outflows from investing activities tied to
the company’s strategic growth initiatives. Total operating costs for the year
came in line with board expectations disclosed at the interim results in
September 2025.
Management
expects to return to cash flow generation in the second half of 2026 as the
investments in Dubai, Canada, and new product offerings begin to drive revenue
growth.
This article was written by Damian Chmiel at www.financemagnates.com.
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