REG - Equals Group PLC - Trading Update

EqualsAnnouncement

08/12/2021 07:00

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RNS Number : 8858U  Equals Group PLC  08 December 2021

 For immediate release  8 December 2021

 

Equals Group plc

('Equals' or the 'Group')

 

Trading Update

 

'Results exceed full year expectations'

'Past investment drives growth across the platform and delivers record
revenues'

 

Equals (AIM:EQLS), the fintech payments group focused on the SME marketplace,
is pleased to announce that is has significantly exceeded full-year
expectations for both revenues and Adjusted EBITDA and is accordingly
providing the market with a trading update for the period from 1 January 2021
to 6 December 2021 (the 'year to date') and 1 October 2021 to 6 December 2021
(the 'Period').

 

Group revenue for the year to date was £40.4 million compared to £26.8
million for the same period in 2020 - an increase of 51%.

 

Group revenue for the Period was £11.6 million compared to £5.7 million for
the same period last year - an increase of 105%.

 

As announced on 28 October 2021, both the year to date and the Period
benefitted from a material international payments transaction for a large
corporate client that generated revenue of £1.5 million.

 

The table below provides more detail on the revenues:

 

 £000's                                 Year to date                          Period
                                        2021     2020     % change      2021        2020    % change

 Material trade                         1,513    0                      1,513       0
 All other non-travel related revenues

                                        35,743   24,168   +48%          9,496       5,165   +84%
 Travel-related revenues

                                        3,160    2,655    +19%          597         504     +18%
 Total revenues                         40,416   26,823   +51%          11,606      5,669   +105%

 Ex material trade                      38,903   26,823   +45%          10,093      5,669   +78%

 

Underlying revenues rose by 45% over the year to date and 78% in the Period to
date. These significant increases have been largely driven by strong demand
for the Group's 'Equals Solutions' proposition, the new multicurrency product
aimed at larger businesses, which has generated £3.1 million in the year to
date and £1.2 million in the Period alone; along with substantial growth in
both the Group's Spend platform and its white-label business.

 

Revenues from the Group's B2C travel-money products represented only 5% of
total revenue in the Period.

 

The strong performance in revenues has also underpinned increased gross
profits and EBITDA and as such the Group has now exceeded full-year
profitability forecasts.

 

This robust trading performance of the Group further underpins the Board's
confidence in accelerating momentum and maintaining growth moving into the
final days of 2021 and into FY-2022. In order to drive further growth the
Group continues to re-invest and upgrade the sales functions of the business
and this will be reflected in higher staff costs in 2022.

 

Ian Strafford-Taylor, Chief Executive Officer, said: "I am delighted to be
able to inform the market that the strong performance we saw in September and
October has continued and allowed us to significantly surpass the market
expectations for the full year in early December. Our results show the results
of strategic steps we undertook three years ago to pivot the business to a
B2B-focus and to invest into our platforms and connectivity."

 

- 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 Advisor / Broker)
 Bobbie Hilliam / Georgina McCooke                        Tel: +44 (0) 20 7523 8150

 Alex Aylen (Sales)

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

 equals@buchanan.uk.com (mailto:equals@buchanan.uk.com)   www.buchanan.uk.com (http://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 and currently employs around 250 staff across sites in London and
Chester.  For more information, please visit www.equalsplc.com
(http://www.equalsplc.com) .

 

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