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REG - Equals Group PLC - Pre-Close Trading Update & Notice of Results

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RNS Number : 8947M  Equals Group PLC  17 January 2023

 For immediate release  17 January 2023

 

Equals Group plc

('Equals', the 'Group' or the 'Company')

 

Pre-Close Trading Update and

Notice of FY-22 Results

 

Equals Group plc (AIM:EQLS), the fast-growing payments group focused on the
SME marketplace, announces a pre-close trading update for the financial year
ended 31 December 2022 ('FY-22' or the 'year').

 

Unaudited revenues for the year were £69.7 million, up 59% (FY-21: £44.1
million); gross profits were £33.6 million, up 39% (FY-21: £24.0 million);
and adjusted EBITDA a  is expected to be marginally above £12.0 million, up
79% (FY-21: £6.7 million) and, ahead of market expectations.  The underlying
performance was even better as 2021 included the 'one-off' revenue from a
material trade of £1.5 million and gross profits of £0.8 million.

 

As shown in the table below, revenue per working day b  increased by 60% over
the full year.  The 43% increase in H2-22 revenues shows the effects of
Solutions revenues coming on stream in H2 of the prior year and points to
continued strong growth of the business.  H2-22 included a period of
pronounced GBP volatility in September which moved some customers to transact
in Q3-22 rather than Q4-22 but these effects smooth out over the six-month
period.

 

 Period  Revenue in    Working  Revenue per working day in £000's   % change on same period in prior year

         £ millions    days
 H1-21   16.9          124      136.3                               23.7%
 H2-21   27.2          129      210.8                               79.0%
 FY-21   44.1          253      174.3                               52.3%

 H1-22   31.4          123      255.3                               87.3%
 H2-22   38.3          127      301.6                               43.0%
 FY-22   69.7          250      278.8                               60.0%

 

The significant increase in adjusted EBITDA achieved in FY-22 versus FY-21 has
been achieved whilst the Group continued to invest in resources for future
growth by adding headcount in sales, marketing, onboarding and compliance
functions.  The Group has also continued to manage its cost base in the face
of high inflation and labour-market tightness.

 

This robust trading has also resulted in approximately £15.0 million of cash
at bank as at 31 December 2022, having settled in full the CBILs loan of £2.0
million and disbursing in excess of £2.0 million relating to acquisitions.

 

2022 also saw the Group continue to deliver on its strategy of investment into
its platform capabilities and connectivity, including the announcement of
direct participation in the SEPA payments network for Euros. Further, the
Group completed the buy-out of the minority shareholdings of Equals Connect
and announced the acquisition of an open banking platform called Roqqett.
 The Group will continue with its strategy of investment in growth, platform
and connectivity and the Board is confident of achieving a strong result for
FY-23.

 

Commenting on the Trading Update, Ian Strafford-Taylor, Chief Executive
Officer, said: "We have delivered a particularly strong financial performance
in 2022 as the Group reaped significant benefits from operational gearing and
economies of scale.  This has been made possible as a result of prudent and
sustained investments into the proposition, specifically technology and
connectivity, since 2018.  That investment continued throughout 2022,
supporting and enabling rapid growth, and will continue through 2023 as we
target investment into an exciting roadmap of product development and growth
initiatives that will expand our capabilities.  We look forward to this year
and beyond with confidence in our proposition, our teams, our technology and,
ultimately, our sustained growth prospects."

 

Notice of FY-22 Results

 

All 2022 reported financial figures remain subject to audit and Equals is
pleased to announce that it will report its final results for the year ended
31 December 2022 on Monday, 27 March 2023.  The Group will also provide an
update on trading in Q1-23.

 

There will be an in-person presentation for analysts at 9:30am on the day of
the announcement, hosted by Ian Strafford-Taylor (CEO) and Richard Cooper
(CFO) at the offices of Buchanan, 107 Cheapside, London EC2V 6DN.  Please
contact Buchanan for further details.

 

For retail investors, an audio webcast of the presentation with analysts will
be made available on the Group's Investor Relations website (www.equalsplc.com
(http://www.equalsplc.com) ) after 12pm on the day of results.  A link will
be provided in the FY-22 Results statement.

 

This announcement contains inside information.

 

- Ends -

 

For more information, please contact:

 

 Equals Group plc
 Ian Strafford-Taylor, CEO                                Tel: +44 (0) 20 7778 9308

 Richard Cooper, CFO                                      www.equalsplc.com (http://www.equalsplc.com)

 Canaccord Genuity (Nominated Adviser / Broker)
 Max Hartley / Harry Rees                                 Tel: +44 (0) 20 7523 8150

 Buchanan (Financial Communications)
 Henry Harrison-Topham / Toto Berger                      Tel: +44 (0) 20 7466 5000

 equals@buchanan.uk.com (mailto:equals@buchanan.uk.com)   www.buchanan.uk.com

 

Notes to Editors:

 

Equals Group is a technology-led international payments group augmented by
highly personalised service for the payment needs of SME's whether these be
FX, card payments or via Faster Payments. Founded in 2007, the Group listed on
AIM in 2014.  For more information, please visit www.equalsplc.com
(http://www.equalsplc.com) .

 

 a  Adjusted EBITDA is before share option charges and exceptional items.

 b  253 working days in FY-21 and 250 in FY-22 which had 10 public holidays.

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