Equals Group registers 84% growth in revenue in H1 2022
Equals Group plc (LON:EQLS), a fintech payments group focused on the SME marketplace, today provided a trading update for the six months ended 30 June 2022.
The Group announces a record breaking six months of trading with revenues up 84% at £31.3 million (H1-2021: £16.9 million). Based on the number of working days (123), revenue in H1-2022 was £252.0k per day, up 87% on H1-2021 (£136.3k).
Gross profits for the period have been estimated at £15.0 million, up 47% on H1-2021 (£10.2 million). Gross profit margins were, in the aggregate, 48.2% which compares well to the 50.6% in H2-2021. Excluding the White-label business of Equals Connect, the gross profit margins were 59% in H1-2022 against 60% in H2-2021.
Cash balances, after earnouts paid in the Period of £1.2 million, rose to £15.1 million (30 June 2021: £10.1 million).
The Group now expects Adjusted EBITDA for FY-2022 to be ahead of current market expectations.
In addition to the strong financial performance, Equals, as a fintech, continues to invest in its product development, customer marketing, front-office staff resources and compliance capabilities. The Group also estimates that its compliance function, along with the tools it uses, incurs expenditure of around £1.6 million per year.
Ian Strafford-Taylor, Chief Executive Officer, commented:
“We are extremely pleased to see an 84% increase in our revenues in the first half with all segments performing exceptionally well. We believe that our revenues are highly ‘inflation-resistant’ and that this should be beneficial for the Group and our Shareholders in the second half of 2022 and beyond. We will be releasing our interim results in early September and we look forward to further updating the market on our progress then.”