Finseta plc
(AIM: FIN), a foreign exchange and payments solutions provider, announced financial
results for the first half of 2024, with revenue soaring approximately 42% to
£5.1 million compared to the same period last year.

In response to the trading update published on Tuesday morning, the company’s shares opened on the London Stock Exchange with a ten percent increase, testing monthly highs.

Finseta Reports Revenue
Growth in First Half of 2024

The
company, which offers multi-currency accounts through a proprietary technology
platform, saw its active customer base grow to 952, up from 874 in the first
half of 2023. This growth, coupled with an increase in average transaction
value, contributed to the significant revenue boost.

Finseta’s
gross margin improved to approximately 65%, up from 61% in the previous year.
The company attributed this improvement to its strategic decision to phase out
its white-label business. Excluding revenue from white label partners,
underlying revenue growth was even stronger at 54%.

In this interview, CEO James Hickman of Finseta #FIN – an international payments platform – takes Vox through the business’ strong H1’24 trading, increasing profit margins, outlook for the rest of 2024 and longer term expansion strategy. https://t.co/PMhtCjzStN #investing…

— Vox Markets (@VOXmarkets) July 9, 2024

Adjusted
EBITDA saw an increase of about 300% to £0.8 million, reflecting both revenue
growth and the scalability of the company’s platform. Cash flow generated from
operations rose to £0.7 million, resulting in a healthy cash balance of £2.8
million as of June 30, 2024.

“This
has been another excellent period of delivery for Finseta, with substantial
growth in revenue and EBITDA as we continued to increase our number of
customers and average transaction value,” commented James Hickman, CEO of
Finseta.

Hickman
also highlighted the company’s progress in expanding its presence in Canada and
advancing its card program. He affirmed that Finseta remains on track to
deliver growth for the full year 2024, in line with the Board’s expectations.

“Accordingly,
and with the strong trading momentum being sustained, we remain on track to
deliver significant growth for FY 2024,” Hickman added.

The
company’s client mix remained stable, with high-net-worth individuals
accounting for 61% of revenue and corporate customers for 39%.

Finseta is
scheduled to release its full interim results on September 10, 2024.

This article was written by Damian Chmiel at www.financemagnates.com.

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