Running a tight ship is a key component of high-performance cultures - staying focused, investing in the right areas, whilst equally extracting maximum value from non-core assets. Enter international payments platform Finseta (FIN) .
After posting sector-leading FY23 results - with adjusted EBITDA coming in at £1.7m on LFL revenues up 100% to £9.6m - FIN said today that it had completed the sale of Capital Currencies Ltd (CCL) for £150k.
CCL was originally acquired back in Feb'22 and since then all of its customers and employees have been successfully integrated within the enlarged group under FIN's FCA EMI (electronic money institution) license - meaning CCL hasn’t had to trade as a discreet legal entity since Nov'22.
CEO James Hickman, commenting: "We are pleased to have completed this transaction that allows us to realise value from the sale of a non-trading subsidiary that holds a licence surplus to our requirements, and which is being acquired by a non-competing business. The proceeds from the sale further strengthen our cash position and our ability to capitalise on the excellent momentum that we have been experiencing across the business."
In terms of numbers, FIN is already profitable, cash generative, and closed Dec'23 with net cash of £0.2m (post £2.2m of non-convertible 6% loan notes). Here house broker Shore Capital has a 'fair value' of 70p/share - based on conservative 2024 estimates of £1.9m in adjusted EBITDA (+6%) on revenues up 20% to £11.5m, alongside ending Dec'24 with net funds of £1.4m.
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