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 an unaudited update on trading for the year ended 31 December 2024.
Highlights
· Underlying revenue1 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 customers2 to 1,059 (2023: 906)
· Gross margin improved to c. 65.5% (2023: 63.4%)
· Adjusted3 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 revenue1 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.
Adjusted3 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 cash4 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.”
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
