Fintech
Payments FinTech Sees Revenue Surge Ahead of Potential Acquisition
Equals is currently facing a potential takeover by a consortium comprising investment management firm TowerBrook Capital Partners and London-based fintech Railsr, chaired by former Chancellor Philip Hammond.
AIM-listed fintech Equals Group has reported a rise in revenues in the first half of 2024, helped by “strong growth” in its solutions platform, as it prepares for a potential takeover bid.
The company, which offers business-to-business payment solutions, reported turnover of £60m in the six months to 30 June 2024. This is up £14.9m, or 33 per cent, on the same period last year.
Equals’ solutions business has seen its turnover almost doubled in the half year to £24.7m, from £13.6m in 2023. The firm noted that fee-based revenues from the solutions are more recurring in nature as customers typically enter into long-term contracts with agreed minimum monthly fees.
The company added that while its foreign exchange unit had a “quiet” first quarter of 2024, there was a “strong recovery” in the second quarter, lifting business revenue to £25.2 million in the six months, up from £24.7 million a year earlier.
Equals noted that FX revenues “are partly dependent on market conditions and rate volatility, which drives increased client activity.”
The company said its customer balances grew over the period and it also renegotiated better rates and margins with its tier-one partner banks. Equals itself had £20.5m of cash in the bank at the end of June, with no debt.
Equals is currently facing a potential acquisition by a consortium comprising investment management firm TowerBrook Capital Partners and Railsr, a fintech company based in Londonchaired by former Chancellor Philip Hammond.
Under UK takeover rules, the consortium has until 5pm on July 10 to make a firm offer for Equals or walk away. The deadline was extended several times since Equals first announced a strategic review last November, which included reaching out to potential buyers.