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 announced its interim results for the six months ended 30 June 2025.
Financial Summary
· Revenue of £5.9m (H1 2024: £5.1m), growth of 16%
· Gross margin of 62.7% (H1 2024: 65.7%) reflecting a change in revenue mix
· Adjusted1 EBITDA of £0.3m (H1 2024: £0.8m) as planned investments were made in the Group’s new strategic initiatives to broaden capabilities and accelerate growth in the medium term
· Cash and cash equivalents at 30 June 2025 were £2.4m (31 December 2024: £2.6m); net cash3 was £0.4m (31 December 2024: £0.6m)
Operational Summary
· Growth in active customers2 to 1,101 (H1 2024: 952); as well as a significant increase in new customers onboarded to the platform but yet to transact
· Received regulatory approval to provide payments services in the United Arab Emirates (“UAE”), resulting in significant revenue growth in the region
· Full-service office established in Canada and commenced generating revenue
· USD-related business was impacted by the effect on foreign exchange (“FX”) rates of tariff-related developments, but now experiencing improvement
· Launched the Finseta Corporate Card scheme to provide customers with an alternative payment method
· Significant milestone achieved post period with successful implementation of agency banking, which will enhance the Group’s offering and enable it to attract a wider range of customers
Current Trading and Outlook
· Following the previously announced delays to some payment transactions in H1 2025, the Group has experienced an improvement in its USD-related business as FX rates normalise, albeit, to date, to a lesser extent than previously anticipated. As a result, the Board is taking a more cautious view of the full year and now expects to report year-on-year revenue growth for FY 2025 of c. 11%
· Cost discipline is being maintained and total operating costs are anticipated to be slightly lower than initially expected for FY 2025
· In the medium term, the strategic actions that the Group has taken position Finseta to substantially accelerate sales growth and increase profitability
James Hickman, CEO of Finseta, said: “This has been another period of significant strategic delivery for Finseta. We have invested in several initiatives that are diversifying our revenue streams and position us for sustainable growth. We are already experiencing the benefits of this strategy, which is set to accelerate our sales and increase our profit in the medium term. While our revenue growth has been constrained by global macroeconomic factors, particularly the impact on foreign exchange rates of US trade policy, it is pleasing to see more positive momentum as we progress through H2, albeit to a lesser extent than initially expected. In addition, we are particularly excited about the prospects for our Dubai operation, which is performing ahead of our expectations and will make an important contribution to our expected revenue growth for the full year. Accordingly, with the foundations of our business having been further enhanced, we remain confident in our ability to deliver sustained value for our shareholders.”
