AIM-listed fintech Equals has notched a bounce in income for the primary half of 2024, helped by “sturdy progress” in its options platform, because it readies for a doable takeover provide.
The agency, which provides business-to-business fee options, reported income of £60m over the six months to 30 June 2024. This determine is up £14.9m, or 33 per cent, from the identical interval final 12 months.
Equals’ options enterprise noticed its revenue almost double within the half-year to £24.7m, from £13.6m in 2023. The agency famous that options’ fee-based revenues are extra recurring in nature as prospects sometimes enter into longer-term contracts with agreed month-to-month minimal charges.
The corporate added that whereas its overseas change unit noticed a “quiet” first quarter of 2024, there was a “sturdy choose up” within the second quarter that resulted within the enterprise’ earnings rising to £25.2m over the six months, from £24.7m final 12 months.
Equals famous that FX revenues “are partly reliant on market circumstances and volatility in charges resulting in elevated buyer exercise”.
The agency mentioned its buyer balances grew over the interval and that it additionally renegotiated higher charges and margins with its tier-one accomplice banks. Equals itself had £20.5m money on the financial institution on the finish of June, with no debt.
Equals is at the moment dealing with a potential takeover by a consortium comprising funding administration agency TowerBrook Capital Companions and London-based fintech Railsr, chaired by ex-Chancellor Philip Hammond.
Below UK takeover guidelines, the consortium has till 5pm on 10 July to both make a agency provide for Equals or stroll away. The deadline has been extended multiple times since Equals first introduced a strategic assessment final November that included contacting potential consumers.
