Equals Group registers steep rise in profits in FY22
Equals Group plc (LON:EQLS), a fintech payments group focused on the SME marketplace, today provided a pre-close trading update for the financial year ended 31 December 2022.
Unaudited revenues for the year were £69.7 million, up 59% (FY-21: £44.1 million); gross profits were £33.6 million, up 39% (FY-21: £24.0 million); and adjusted EBITDA is expected to be marginally above £12.0 million, up 79% (FY-21: £6.7 million) and, ahead of market expectations.
The underlying performance was even better as 2021 included the ‘one-off’ revenue from a material trade of £1.5 million and gross profits of £0.8 million.
Revenue per working day increased by 60% over the full year. The 43% increase in H2-22 revenues shows the effects of Solutions revenues coming on stream in H2 of the prior year and points to continued strong growth of the business. H2-22 included a period of pronounced GBP volatility in September which moved some customers to transact in Q3-22 rather than Q4-22 but these effects smooth out over the six-month period.
The significant increase in adjusted EBITDA achieved in FY-22 versus FY-21 has been achieved whilst the Group continued to invest in resources for future growth by adding headcount in sales, marketing, onboarding and compliance functions. The Group has also continued to manage its cost base in the face of high inflation and labour-market tightness.
This robust trading has also resulted in approximately £15.0 million of cash at bank as at 31 December 2022, having settled in full the CBILs loan of £2.0 million and disbursing in excess of £2.0 million relating to acquisitions.
2022 also saw the Group continue to deliver on its strategy of investment into its platform capabilities and connectivity, including the announcement of direct participation in the SEPA payments network for Euros. Further, the Group completed the buy-out of the minority shareholdings of Equals Connect and announced the acquisition of an open banking platform called Roqqett.
The Group says it will continue with its strategy of investment in growth, platform and connectivity and the Board is confident of achieving a strong result for FY-23.
Ian Strafford-Taylor, Chief Executive Officer, said:
“We have delivered a particularly strong financial performance in 2022 as the Group reaped significant benefits from operational gearing and economies of scale. This has been made possible as a result of prudent and sustained investments into the proposition, specifically technology and connectivity, since 2018. That investment continued throughout 2022, supporting and enabling rapid growth, and will continue through 2023 as we target investment into an exciting roadmap of product development and growth initiatives that will expand our capabilities.
We look forward to this year and beyond with confidence in our proposition, our teams, our technology and, ultimately, our sustained growth prospects.”