Investing is all about the future and whether a company will deliver against its strategic objectives even during difficult times.

Here Finseta  – a foreign exchange & international payments platform serving high net worth individuals (HNWIs) and corporates (57% sales) – ticks the box.

You see in 2025, despite its HNWI clients being hit by Trump’s trade tariffs and challenging macro conditions. Sales nonetheless jumped 9% to £12.4m (+3% £6.5m H2, +16% £5.9m H1) thanks to a 4% increase in active customers (1,101) and higher average spend per client.

Additionally and as a clear statement of intent (re overseas expansion), the Dubai office exceeded expectations after receiving regulatory approval in the UAE in Mar’25, with further investment planned in the commercial team to support future growth.

Encouragingly too, turnover from UK corporates leapt 54% to £7.0m, which improves visibility due to the repeat nature of their transactions. These two long term growth engines though were partly offset by short term market volatility - leading to more cautious payments activity during H2’25, particularly amongst more profitable HNWIs.

Elsewhere, FY’25 gross margin declined slightly to 61% (H1 62.7%) as a result of the adverse mix. Which when combined with investments in sales, compliance and overhead functions, meant FY’25 EBITDA and net debt came in marginally shy of expectations at £0.1m (-£0.2m H2, £0.3m H1. Shore Capital Research Est £0.4m) and £0.3m (H1 +£0.4m) respectively.

But that’s not all.

The Board also setup a full-service office in Canada, launched a new Finseta Corporate Card scheme, secured extra counterparty partnerships and implemented UK agency banking in Q3. Thus enabling the group to issue its own account numbers and connect indirectly to the Faster Payments System. This should lead to accelerated top line growth and increased profitability in the medium-term.

CEO James Hickman adding: “We delivered against all of our strategic objectives in 2025 – 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.”

In terms of the numbers, house broker Shore Capital Research are predicting FY'26 EBITDA of £1.2m on sales up 30% to £16.4m, and have a 45p/share price target. The Board expects to return to cash flow generation in H2’26. Moreover at 14p, the stock trades on a compelling 0.5x FY’26 EV/sales multiple, which looks far too cheap for a rapidly expanding fintech business with a scalable & proprietary forex platform.

 

Disclosure: Finseta is a Vox Markets client