REG - Equals Group PLC - Pre-Close Trading Update & Notice of FY-23 Results

EqualsAnnouncement

16/01/2024 07:01

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RNS Number : 7558Z  Equals Group PLC  16 January 2024

 For immediate release  16 January 2024

 

 

Equals Group Plc

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

 

Pre-Close Trading Update and Notice of FY-23 Results

 

Equals Group plc (AIM:EQLS), the fintech payments group focused on the
Enterprise and SME marketplace, announces, consistent with prior years, a
pre-close trading update for the financial year ended 31 December 2023
('FY-23' or the 'year').

 

Unaudited revenues for the year were £95.5 million, up 37% (FY-22: £69.7
million) with continued growth in Adjusted EBITDA.

 

This robust trading has also resulted in approximately £18.3 million of cash
at bank at 31 December 2023, a further £2.3 million cash-in-transit over
year-end and received on 4 January 2024, and, having disbursed approximately
£7.0 million relating to acquisitions, earn-outs and a maiden dividend during
2023.

 

As a result, the Board expects the Group's FY-23 results to be in-line with
current market expectations.

 

As shown in the table below, revenue per working day increased by 36.4% over
FY-23.  The revenue growth continues to be driven by Solutions revenues
augmented by B2B growth across other product lines.

 

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

£ millions
days
 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%

 H1-23   45.0          124      362.9                               42.1%
 H2-23   50.5          127      397.6                               31.8%
 FY-23   95.5          251      380.5                               36.4%

 

Commenting on the Trading Update, Ian Strafford-Taylor, Chief Executive
Officer, said: "We have delivered a strong financial performance in 2023 as
the Group continues to benefit from its strategy of investment into technology
and connectivity. Whilst the Strategic Review announced on 1 November 2023
remains ongoing, we will continue with our plans in 2024 and look forward with
confidence in our proposition, our teams, our technology and, ultimately, our
sustained growth prospects."

 

Notice of FY-23 Results

All 2023 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 2023 in the week of 15 April 2024.  The Group will also provide
an update on trading in Q1-24.  A further announcement will be made nearer
the time to confirm a precise date as well as meeting arrangements for
sell-side analysts and retail investors.

 

Profit Estimate

 

The below guidance in relation to full year expectations for the year ended 31
December 2023 (the 'Profit Estimate') which is included in today's trading
update constitutes an ordinary course profit estimate for the purposes of Note
2 on Rule 28.1 of the Takeover Code:

 

"As a result, the Board expects the Group's FY-23 results to be in-line with
current market expectations."

 

For the purposes of Rule 28 of the Takeover Code, the directors of the Company
confirm that, as at the date of this announcement, the Profit Estimate remains
valid, that it has been properly compiled on the basis of the assumptions
stated below and that the basis of accounting used is consistent with Equals'
accounting policies which are in accordance with International Financial
Reporting Standards and those that Equals applied in preparing its financial
statements for the year ended 31 December 2022 and those applicable for the
year ended 31 December 2023.

 

Further information on the basis of preparation of the Profit Estimate,
including the principal assumptions on which it is based, is set out below.

 

Basis of preparation and principal assumptions

 

Although the financial period to which the Profit Estimate relates has been
completed, the Company's audited accounts for the year ended 31 December 2023
are not available as at the date of this trading update.  Accordingly, the
Profit Estimate is based on the Company's unaudited interim results for the
six months ended 30 June 2023 and the Company's unaudited management accounts
for the six months ended 31 December 2023.

 

The Profit Estimate has also been prepared on the basis of the assumptions
listed below.  The first assumption relates to matters which are both outside
and within the influence or control of the Company; the second assumption
relates only to matters which are outside the influence or control of the
Company:

 

·    no events will arise between the date of this trading update and the
date on which the Company announces its audited results for the financial year
ended 31 December 2023 which would require incorporation in the FY-23 results
in accordance with International Financial Reporting Standards and/or the
Company's accounting policies; and

 

·    there will be no retrospective change in legislation or regulatory
requirements that will have a material impact on the Company's operations.

 

- 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 / Stephanie Whitmore / Toto Berger  Tel: +44 (0) 20 7466 5000

 equals@buchanan.uk.com                                    www.buchanancomms.co.uk (http://www.buchanancomms.co.uk)

 

Notes to Editors:

 

Equals Group plc 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) .

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