Constantly delighting customers is an essential part of the DNA of successful businesses.
It's no different in the foreign exchange world where despite the ongoing macro uncertainty, Finseta (FIN) - a cross-border payments platform for high net worth individuals (HNWIs, 42%) and corporates (58%) - again secured a host of new clients in H1'25 (up +15.6% YoY to 1,101, +4.0% vs Dec'24).
This impressive growth translated into a 16% YoY jump in revenues to £5.9m, albeit due largely to the market volatility, there were fewer overseas property transactions completed by HNWIs in Q2, which impacted mix and gross margins (H1'25 62% vs 65.7% LY) - here nudging down adjusted EBITDA to c. £0.3m (£0.8m) as strategic investments were also made in FIN's proprietary software, regulatory/compliance systems, international expansion (eg Dubai and Canada) and introducer network.
That said, much stronger performance is anticipated in H2'25 (Shore Capital est sales £9.2m, EBITDA £1.4m) as forex rates normalise, confidence returns, overseas sales climb (re Canada and Dubai) and deferred property transactions are completed, alongside those newly onboarded clients starting to transact.
So putting all this together, the Board expects "FY'25 results to be in line with its expectations" delivering improved gross margins vs H1'25.
CEO James Hickman commenting: "This has been a milestone period for Finseta as we launched our corporate card scheme and significantly expanded our international capabilities with full-service offerings in Dubai and Canada. While the global economic conditions resulted in customers delaying transactions, our strong levels of customer acquisition means we are well-positioned as markets normalise in H2. As a result, and with our new strategic initiatives set to ramp-up in H2, we remain on track to deliver significant revenue growth for FY’25 and look to the future with great confidence."
Lastly, net cash closed June at £0.4m vs £0.6m Dec'24. Interims are scheduled for Sept'25.
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