Finseta (LON:FIN), the UK-based provider of cross-border payment services, has reported its interim results for the six months ended 30 June 2025. While the latest figures reflect a subdued trading period, Shore Capital remains supportive of the company’s long-term growth strategy, reaffirming its status as House Stock and updating forecasts to reflect rebased expectations.
Revenue for the first half of FY25 rose 16% year-on-year to £5.9 million, reflecting continued customer engagement but also the impact of foreign exchange volatility, which led to delays in high-value USD transactions. These have since seen partial recovery but were below management expectations. Gross margin dipped slightly to 62.7% compared with 65.7% in the same period last year.
Adjusted EBITDA fell to £0.3 million, down 66% year-on-year, influenced by a 36% rise in underlying operating costs (excluding depreciation and amortisation), primarily driven by targeted investments in strategic initiatives. Finseta ended the period with £0.4 million in net cash, maintaining a steady balance sheet position.
Despite the financial dip, operational momentum remains strong. Active customer numbers increased 16% year-on-year to 1,101. The company made key advances in new markets, including regulatory approval to offer UAE payment services, which outperformed internal forecasts. Revenue generation has also commenced from its Canadian office, and a Mastercard-backed corporate card scheme was successfully launched. Post-period, Finseta has implemented UK agency banking capabilities to enhance payment processing.
According to the latest research note from Shore Capital, analyst Vivek Raja commented, “FIN has limited scope to reduce costs to mitigate the impact of a revenue shortfall on FY25F EBITDA, whilst we raise FY26F and FY27F underlying operating costs. The result of these actions is a rebasing of forecasts and a reduction in our fair value estimate to 45p (from 80p).”
Revenue guidance for FY25 has been downgraded to a growth rate of approximately 11%. Nevertheless, Shore Capital sees room for recovery in FY26 should USD transaction volumes continue to bounce back. The broker anticipates increased investment in FY26 to support strategic expansion, particularly in the UAE.
Looking ahead, Shore Capital’s adjusted EBITDA forecasts for FY26 and FY27 are £1.1 million and £3.4 million respectively, with profitability expected to inflect meaningfully. The fair value per share is now estimated at 45p, compared to the current share price of 22p, underlining potential upside as Finseta executes on its international growth strategy.
H1 Financial and Operational Highlights:
- Revenue up 16% YoY to £5.9m
- Adjusted EBITDA £0.3m, down 66% YoY
- Gross margin 62.7%
- Net cash at £0.4m
- Active customers +16% YoY to 1,101
- UAE regulatory approval and Canadian office generating revenue
- Mastercard-supported corporate card scheme launched
- UK agency banking implemented post-period
On a Final Note
While Finseta’s interim results signal a short-term slowdown, the underlying operational achievements and disciplined investment in new initiatives position the business well for medium-term growth. Shore Capital’s revised forecasts reflect a more cautious near-term outlook, but the broker remains confident in Finseta’s ability to scale and diversify its offering across global markets.
