Equals Group (EQLS ) has completed a material international payments transaction that is expected to contribute around £1.5 million to Group revenues in the current financial year.
The transaction represents the largest single transaction ever completed by Equals Group.
The fintech payments group which is focused on the SME marketplace said the transaction, which has been in the pipeline for several months, is for a large unnamed corporate client.
The Company explained to investors that this transaction is ‘one-off in nature’ but evidences the ability of the Group to attract large corporate clients through its state-of-the-art platforms.
‘That, coupled with highly professional service levels, translates into increased credibility for the Group’s ability to act as a financial counterpart in major transactions,’ it acknowledged.
The transaction undertook extensive and extended levels of due diligence, with the support of external legal advice, and that it was cleared by Equals’ partner bank prior to completion.
Commenting, Ian Strafford-Taylor, Chief Executive Officer of Equals Group, stated: “I am exceptionally proud that, following significant investment, the Equals Group has the infrastructure, capability and know-how to undertake a transaction of this size and complexity.
He added that today’ transaction represents the largest single transaction ever completed by the Company and that is “a clear demonstration” of Equals’ credibility among large corporates, the quality of its service proposition, and the level of commitment of its people.
Earlier this month, the Company told investors that it had sustained good progress throughout the remainder of the 3Q21 period, with the company reporting revenues of £11.7 million.
Last month, Equals said it had made a ‘record start’ after the Company reported fast growing revenues amounting to £9.2m in the period from 1 July to 10 September in its 1H21 results.
The Group it had seen continued progress marking a continued acceleration in trading and that it was representative of a 33% run-rate increase on the prior quarter (2Q21: £8.8m); a 62% increase on the 3Q20 period (£7.2m); and a 47% rise on the £8m recorded in 3Q19.
Revenue growth across all products has largely been augmented by the strong demand for its ‘Equals Solutions’ proposition, the new multi currency product aimed at larger businesses.
The Company highlighted that this performance further underpins the Board’s confidence in accelerating momentum and maintaining growth moving into the final quarter of the year.
Commenting on the results, Ian Strafford-Taylor, CEO of Equals Group said: “The planned pivoting away from retail and travel towards B2B has paid-off spectacularly in 1H21.”
In particular, 1H21 showed strong B2B growth in transaction volumes and revenues across all product lines of International Payments, the Corporate Spend platform and Banking Services.
The Company said this growth has accelerated in July, August and September 2021 as the benefits of the own-name IBAN capabilities are feeding through to Equals Solutions.
At the time, Equals said 2H21 is anticipated to continue in the same strategic direction as 1H21 ‘with continued investments, (albeit at much lower levels than the peak in 2019), in the technology platform and connectivity to payments networks focussed on the B2B customer.’
The Company highlighted that this growth will also be augmented by ‘increased resources applied to sales and marketing to drive new customers on to the platform and products.’
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