London-based foreign exchange and payments solutions company Finseta plc (formerly known as Cornerstone FS) has provided an unaudited trading update for the six months ended 30 June 2024, which includes good increases in revenue, EBITDA and active customers during the first half of the year.
Finseta H1 2024 Highlights:
- Revenues increased by c. 42% to c. £5.1m (1H 2023: £3.6m)
- Increase in active customers1 to 952 (H1 2023: 874) and increase in average transaction value
- Gross margin improved to c. 65% (1st semester 2023: 61.0%)
- Adj. EBITDA2 increased by c. 300% to c. £0.8m (1H 2023: £0.2m)
- Cash flows generated by operations of c. £0.7m (1H 2023: £0.1m)
- Strong balance sheet with cash and cash equivalents at 30 June 2024 £2.8m (31 December 2023: £2.3m)
- On track to report significant revenue growth for the full year 2024, in line with Board expectations
As noted in the Group’s full-year results announcement on 8 May 2024, the strong trading momentum seen in 2023 had been sustained in the current year and this continued into the 1st half of 2024. As a result, the Group expects to report an increase in revenue for the first half of 2024 around 42%, to £5.1m (1H 2023: £3.6m). This significant growth was driven by an increase in active customers to 952 (1H 2023: 874) as well as an increase in average transaction value, reflecting the expansion of the Group’s sales team and importer network and increased focus on providing a an exceptional level of service to corporate and high net worth individual (“HNWI”) clients.
The Group expects to present an improvement of the gross margin in c. 65% for the first half of 2024 (1st half of 2023: 61.0%). This is mainly due to the Group no longer deriving revenue from white label partners following its strategic decision to run its historic white label business. On an underlying basis, to exclude revenue generated by white label partners in the first half of 2023, Group revenue increased by c. 54% in 1H 2024 compared to 1H 2023. Revenue by client type remained flat, with HNWI clients representing 61% and corporate clients 39% (1H 2023: 62% and 38% , respectively).
Adjusted EBITDA is expected to be c. £0.8m for the first half of 2014 (1H 2023: £0.2m). This growth reflects revenue growth as well as the Group beginning to benefit from the operational leverage offered by its highly scalable platform. Cash flows from operations were c. £0.7m (H1 2023: £0.1m), with the Group generating total net cash inflow c. £0.4m for the 1H 2024 period (H1 2023: £0.1m). Accordingly, cash and cash equivalents at 30 June 2024 increased to £2.8m (31 December 2023: £2.3m).
James Hickman, CEO of Finseta, said:
“This has been another excellent period of delivery for Finseta, with significant growth in revenue and EBTIDA as we continued to grow our customer base and average transaction value. This reflects our success in executing our strategy to expand our importer network and payment capabilities, while maintaining the high level of customer service we are known for. At the same time, we continued to strengthen our business and future growth drivers with the significant progress made in establishing a presence in Canada and with our card program. Accordingly, and with the maintenance of strong trading momentum, we remain on track to achieve significant growth for the 2024 financial year in line with the Board’s expectations and look to the future with great confidence.”
Finseta said it will provide more information on its performance for the first half of 2024 in its interim results announcement, which is scheduled to be published on September 10, 2024.
About Finseta plc
Finseta plc (LON: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 personalized service to support customers with payments in over 150 countries in 58 currencies. With a track record of over 12 years, Finseta has the expertise, experience and expanding global partner network to handle complex cross-border payments. It is fully regulated, through its wholly owned subsidiaries, by the Financial Conduct Authority as an Electronic Money Institution and by the Financial Analysis and Reporting Center of Canada as a Money Services Business.