REG - Finseta PLC - Trading Update

FinsetaAnnouncement

09/07/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250709:nRSI2613Qa&default-theme=true

RNS Number : 2613Q  Finseta PLC  09 July 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.

 

9 July 2025

 

Finseta plc

("Finseta" or the "Company")

 

H1 2025 Trading Update

 

On track to deliver full year results in line with Board expectations,
including significant revenue growth

 

Finseta plc (AIM: FIN), a foreign exchange and payments solutions company
offering multi-currency accounts to businesses and individuals through its
proprietary technology platform, provides the following unaudited update on
trading for the six months ended 30 June 2025 ("H1 2025").

 

The Group expects to report an increase in revenue for the six months ended 30
June 2025 of approximately 16% to £5.9m (H1 2024: £5.1m), driven by an
increase in active customers(1) to 1,101 (H1 2024: 952). The Group expects to
report a gross margin for H1 2025 of approximately 62% (H1 2024: 65.7%), which
is due to revenue mix, and adjusted(2) EBITDA of c. £0.3m (H1
2024: £0.8m), reflecting the investment in the Group's new strategic
initiatives, which have substantially broadened the Group's capabilities and
are expected to significantly accelerate sales growth and increase
profitability in the medium term.

 

By client type, there was an increase in revenue generated by both private
clients (primarily high net worth individuals) and corporate accounts in H1
2025. The proportion of total revenue accounted for by private clients was 42%
(H1 2024: 60%) with corporate accounts contributing 58% (H1 2024: 38%).

 

New customers onboarded to the Finseta platform in H1 2025 but yet to transact
were significantly higher than the first half of the prior year, and ahead of
management's expectations, positioning the Group for further growth. The
conversion of newly onboarded customers to active customers during the period
was constrained by the effects on foreign exchange ("FX") rates and the global
economy of tariff-related developments during H1 2025. A large proportion of
the Group's customer base typically use Finseta's services for high-value
purchases such as international real estate, and the Group saw some payment
transactions being delayed until H2 2025. The Group expects these transactions
will resume in the second half of the year as FX rates normalise and customers
complete their underlying transactions.

 

The Group's new strategic initiatives - namely its corporate card scheme and
operations in Canada and Dubai - commenced in H1 2025, generating first
revenues during the period; revenues are expected to increase from these
initiatives as the second half of the year progresses. In Dubai, following
authorisation from the Dubai Financial Services Authority to provide payment
services within the United Arab Emirates, the Group commenced the expansion
of its operations, which will continue through H2 2025, including hiring a
number of new salespeople.

 

Cash generated from operating activities in H1 2025 was c. £0.3m (H1
2024: £0.8m). Cash and cash equivalents at 30 June 2025 were £2.4m (31
December 2024: £2.6m) resulting in net cash(3) of £0.4m (31 December
2024: £0.6m).

 

Looking ahead, the Board expects that the Group will deliver a strong second
half of the year and report results for FY 2025 in line with its expectations.
The Board expects significant H2 2025 revenue growth consistent with previous
years, at an improved gross margin compared to H1 2025, supported by
anticipated transactions from the encouraging new customer onboarding activity
in H1 2025 as markets normalise and from on-going growth from the Group's
strategic initiatives.

 

The Group will provide further information in its interim results
announcement, which is expected to be published in September 2025.

 

James Hickman, CEO of Finseta, said: "This has been a milestone period for
Finseta as we launched our corporate card scheme and significantly expanded
our international capabilities with full-service offerings in Dubai and
Canada. While the global economic conditions resulted in customers delaying
transactions, our strong levels of customer acquisition means we are
well-positioned as markets normalise in H2. As a result, and with our new
strategic initiatives set to ramp-up in H2, we remain on track to deliver
significant revenue growth for FY 2025 and look to the future with great
confidence."

 

 

Notes

(1) Defined as customers who traded through Finseta during the six-month
periods to 30 June 2025 and 30 June 2024 respectively

(2) Adjusted to exclude other operating income, share-based compensation,
profit from the disposal of a subsidiary and transaction costs (in H1 2024),
and the rental cost of the Group's corporate premises

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

 

Enquiries

 

 Finseta plc                                     +44 (0)203 971 4865
 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 150 currencies. With a track record of over
15 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; by the Financial Transactions
and Reports Analysis Centre of Canada as a Money Services Business; and by the
Dubai Financial Services Authority under a Category 3D licence.
www.finseta.com (http://www.finseta.com)

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTLVLLBEDLBBBV