REG - Finseta PLC - 2024 Full Year Trading Update

FinsetaAnnouncement

15/01/2025 07:00

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RNS Number : 3284T  Finseta PLC  15 January 2025

Certain information contained within this announcement is deemed by the
Company to constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014 ("MAR") as applied in the United Kingdom. Upon
publication of this announcement, this information is now considered to be in
the public domain.

 

15 January 2025

 

Finseta plc

("Finseta", the "Company" or the "Group")

 

2024 Full Year Trading Update

and Notice of Investor Presentation

Significant strategic progress and growth in all key financial metrics

 

Finseta plc (AIM: FIN), a foreign exchange and payments solutions company
offering multi-currency accounts to businesses and individuals through its
proprietary technology platform, is pleased to provide an unaudited update on
trading for the year ended 31 December 2024.

 

Highlights

·    Underlying revenue(1) grew by c. 26% to £11.3m (2023: £8.9m) and
reported revenue increased by c. 19% to £11.4m (2023: £9.6m)

·    Growth in active customers(2) to 1,059 (2023: 906)

·    Gross margin improved to c. 65.5% (2023: 63.4%)

·    Adjusted(3) EBITDA increased by c. 18% to £2.0m (2023: £1.7m)

·    Cash flows from operating activities of c. £2.2m (2023: £2.0m)

·    Cash and cash equivalents at 31 December 2024 of c. £2.6m (31
December 2023: £2.3m)

 

The strong trading momentum that was experienced in H1 2024 was sustained and
continued through to the year-end. As a result, the Group expects to report an
increase in underlying revenue(1) for FY 2024 of approximately 26% to £11.3m
(2023: £8.9m) and growth in reported revenue of approximately 19% to £11.4m
(2023: £9.6m). This growth was driven by an increase in active customers to
1,059 (2023: 906) reflecting the Group's expansion of its sales team and
introducer network and sustained focus on providing an exceptional level of
service to its corporate and high net worth individual ("HNWI") clients.

 

By client type, the Group saw an increase in revenue generated by both private
clients (primarily HNWIs) and corporate accounts. The proportion of total
revenue accounted for by private clients was 59% (2023: 64%) with corporate
accounts contributing 40% (2023: 34%). In respect of the majority of private
client revenue, whilst the underlying transaction is with an individual, the
relationship is via a corporate that provides services to the individual. In
addition, the Group received £100k (2023: £220k) in revenue, accounting for
1% of total revenue (2023: 2%), as the final income generated under a
licencing agreement with the acquirers of Avila House, a former subsidiary of
the Group.

 

The Group expects to report a further improvement in gross margin to c. 65.5%
for 2024 (2023: 63.4%), primarily reflecting the strategic decision to
offboard the historic white label business in prior years.

 

Adjusted(3) EBITDA is expected to increase to c. £2.0m for 2024 (2023:
£1.7m). This growth reflects the increase in revenue as well as the Group
continuing to benefit from the operating leverage offered by its highly
scalable platform.

 

Cash generated from operating activities was c. £2.2m (2023: £2.0m). Cash
and cash equivalents at 31 December 2024 increased to £2.6m (31 December
2023: £2.3m) resulting in net cash(4) of £0.6m (31 December 2023: £0.2m).

 

James Hickman, CEO of Finseta, said: "This has been a milestone year for our
company as we undertook several significant strategic initiatives while
continuing to deliver strong growth. We have expanded our offering, our sales
team and our introducer network resulting in an increased number of customers.
This has enabled us to achieve growth in all key financial metrics in 2024. At
the same time, our agreement with Mastercard, establishing a presence in
Canada and adopting 'Finseta' as our new company name have strengthened our
business and our ability to deliver value. Accordingly, we have entered 2025
with confidence and we look forward to reporting on further progress."

 

 

Investor Presentation

 

The Group gives notice that James Hickman, CEO, and Judy Happe, CFO, will be
presenting via Investor Meet Company on 21 January 2025 at 9.30am GMT to
provide investors with an update on the Group's trading for 2024 and its
strategic progress.

 

Questions can be submitted pre-event via the Investor Meet Company platform up
until 9.00am GMT the day before the meeting or at any time during the live
presentation.

 

Investors can sign up to Investor Meet Company for free and add to
meet Finseta via: https://www.investormeetcompany.com/finseta-plc/register-investor
(https://url.avanan.click/v2/r02/___https:/www.investormeetcompany.com/finseta-plc/register-investor___.YXAxZTpzaG9yZWNhcDphOm86N2I5MDY5YmJkMTk4NGU2NzAzODBkY2NmYWNiMzQxZDk6NzoyMWZjOjc5OTU1MzFmY2I0M2UzOGMzMzE5ZmM2NWI3MmU0OGFhMmJhN2VmNTg4OGEzMjhlM2Q2OGM4ODAwZmEzMTdiZDg6cDpUOk4)

 

Notes

(1) Defined as total revenue excluding revenue generated by the Group's
historic white label business in 2023 and licencing revenue under an
exceptional agreement in 2023 and 2024

(2) Defined as customers who traded through Finseta during the 12-month
periods to 31 December 2024 and 31 December 2023 respectively

(3) Adjusted to exclude share-based compensation, transaction costs,
depreciation & amortisation charges, profit from the disposal of a
subsidiary, other operating income related to interest on client balances and
non-cash based accounting adjustments in respect of the Group's corporate
premises

(4) Defined as cash and cash equivalents less loan notes

 

 

Enquiries

 

 Finseta                                                                                 +44 (0)203 971 4865
 plc

 James Hickman, Chief Executive Officer

 Judy Happe, Chief Financial Officer

 Shore Capital (Nominated Adviser and Broker)                                            +44 (0)207 408 4090

 Daniel Bush, Tom Knibbs (Corporate Advisory)

 Guy Wiehahn (Corporate Broking)

 Gracechurch Group (Financial PR)                                                        +44 (0)204 582 3500

 Harry Chathli, Claire Norbury, Henry Gamble

 

 

About Finseta plc

 

Finseta plc (AIM: FIN) is a foreign exchange and payments company offering
multi-currency accounts and payment solutions to businesses and individuals.
Headquartered in the City of London, Finseta combines a proprietary technology
platform with a high level of personalised service to support clients with
payments in over 165 countries in 140 currencies. With a track record of over
12 years, Finseta has the expertise, experience and expanding global partner
network to be able to execute complex cross-border payments. It is fully
regulated, through its wholly-owned subsidiaries, by the Financial Conduct
Authority as an Electronic Money Institution and by the Financial Transactions
and Reports Analysis Centre of Canada as a Money Services Business.
www.finseta.com
(https://url.avanan.click/v2/r02/___http:/www.finseta.com___.YXAxZTpzaG9yZWNhcDphOm86N2I5MDY5YmJkMTk4NGU2NzAzODBkY2NmYWNiMzQxZDk6Nzo4ODAxOjQ4NjkxMDA1NzE3ZWY5MmIyYzI1YWVkYTE1Y2Y4N2ZkYzA5MTI1OWJjYmZiMTBhOWY4MTIxNTAzOGQ2ZjVhNjc6cDpUOk4)

 

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