Finseta plc (LON:FIN), a foreign exchange and payments solutions company offering multi-currency accounts to businesses and individuals through its proprietary technology platform, has provided the following update on trading for the year ended 31 December 2025.
The Group expects to report FY 2025 revenue of £12.4m (FY 2024: £11.4m), an increase of 9%, reflecting growth in both active customers to 1,1011 (FY 2024: 1,059) and average revenue per customer. After receiving regulatory approval in March 2025 to provide payment services in the United Arab Emirates (“UAE”), the Group achieved significant growth in its Dubai operation, ahead of the Board’s initial expectations, and consequently invested further in the sales team to support accelerated future growth in the region. Together with further expansion of the UK sales teams in 2025, the Group also saw strong growth in business with corporate clients in the UK. Total revenues from corporate clients increased by 54% compared with FY 2024 and represented 57% of FY 2025 Group revenues (FY 2024: 41%). The growth in revenues from Dubai and from corporate clients served to largely mitigate the impact of the previously-reported effects on foreign exchange rates and the global economy of tariff-related developments, which continued to constrain active customer conversion and payments activity during the second half of the year, particularly amongst high net worth individual (“HNWI”) clients.
The Group’s gross margin is expected to be approximately 61% (FY 2024: 65.7%), as a result of the greater weighting towards corporate clients in the FY 2025 revenue mix. Whilst corporate client gross margins are lower than HNWIs, corporate clients typically transact more regularly and provide greater revenue recurrence.
During 2025 the business made substantial strategic and operational progress, with the receipt of regulatory approval to provide payments services in the UAE, the establishment of a full-service office in Canada, the launch of the Finseta Corporate Card scheme, the establishment of new counterparty partnerships and the implementation of UK agency banking in Q3, which enables Finseta to issue its own account numbers and connect indirectly to the Faster Payments System. The Group made planned investments in FY 2025 to support these activities and position Finseta to benefit from expanded geographical and market reach, and a broader product and service offering, which it believes will lead to accelerated sales growth and increased profitability in the medium term. Whilst doing so, Finseta has maintained cost discipline with total operating costs for the year anticipated to be in line with the Board’s expectations at the time of the interim results in September 2025. As a result of the planned investment in sales, compliance and overhead functions, and trading conditions during FY 2025, the Group expects to report adjusted EBITDA2 of approximately £0.1m (FY 2024: £2.0m).
Cash and cash equivalents at 31 December 2025 were £1.5m (31 December 2024: £2.6m) resulting in net debt3 of £0.3m (31 December 2024: net cash of £0.6m). This primarily reflects reduced operating cash flow in FY 2025 and a cash outflow from investing activities of approximately £1.1m (FY 2024: £1.3m), on account of the Group’s planned investment in its strategic growth initiatives, which will support growth in future periods. The Group expects to return to cash flow generation in H2 2026.
James Hickman, CEO of Finseta, said: “2025 was a year of substantial strategic progress. We delivered against all of our strategic objectives for the year – most notably with the ramp up of our operation in Dubai and completing the implementation of UK agency banking. While our revenue growth was constrained by macroeconomic factors, the strategic progress and investments we made during the year position us to broaden our offering, accelerate sales growth and increase profitability in the medium term.”
