Fintech payments group Equals Group plc (LON:EQLS) today provided a trading update for the six months ended 30 June 2024 (‘H1-2024’).
The Group saw revenues increase £14.9 million compared with the same period last year to £60.0 million, an increase of 33% year-on-year (H1-2023: £45.0 million).
FX revenues, which incorporate both direct and white-label, are partly reliant on market conditions and volatility in rates leading to increased customer activity. After a quiet Q1-2024 the company saw a strong pick up in Q2-2024. Overall, FX revenues from B2C customers are subdued given macro-economic conditions whereas B2B revenues are more robust.
Within Solutions, fee-based revenues are more recurring in nature as customers typically enter into longer-term contracts with agreed monthly minimum fees.
The Group also earns interest income which is primarily earned on safeguarded customer balances held off balance sheet, over three currencies (GBP, EUR and USD) and across four Tier-1 banks.
As at 30 June 2024, the Group had no debt and had cash at bank of £20.5 million having already settled the following items during the Period:
- dividend paid to shareholders on 28 June 2024, totalling £1.9 million;
- costs pursuant to past acquisitions settled in the Period, totalling £1.8 million; and
- third-party costs incurred on the strategic review totalling £0.5 million.
