Fintech-listed Equals' initial results for the first six months of 2023 Revenue increases, Adjusted EBITDA hits record high。In addition, the company announced a proposal to cut capital。

Equals Releases First Half 2023 Results Report

According to the report, Equals' multiple financial metrics increased significantly, with revenue up 43% from the same period last year.。The Company also provided its latest results for the third quarter of 2023, indicating the continued strength of the Company's growth momentum.。

Equals "revenue rose to £45 million from £31.4 million in the first half of 2022, an increase that was partly due to £13.6 million in revenue from the Equals solutions platform.。

Gross profit jumped 59% to £23.6 million, from 47 in the previous year..4% to 52.4%。

EBITDA more than doubled to £9.8m, compared to just £4.9m in the first half of 2022, up 102 per cent and a record high on this metric.。

After-tax profit was £4.8m, compared to £800,000 in the same period last year, and earnings per share (EPS) were 2.64p compared to 0 in the second half of 2022.38p。

Ian Strafford-Taylor, chief executive of Equals, said: "This is a set of outstanding results, with record revenues combined with improved gross margin retention enhancing profitability.。"

Although the company's performance was better than a year ago compared to the second half of 2022, revenue fell significantly from £69.7m。

On the operational side, the Equals Group is equally busy.。The company completed the acquisition of Oonex, now renamed Equals Money Europe, in order to enter the European market.。In addition, the open banking platform Roqqett is fully integrated into Equals "operations.。Not only that, but also invested in compliance and risk capabilities, and deployed API integration with Equals Platform, opening up new distribution channels。

Third Quarter Results and Future Outlook

Based on interim results, the Company's results have continued through the third quarter of 2023。Year-to-date revenue was £63.6 million, up 39% from the same period last year; daily revenue has risen to £370,000, compared with 26% in the same period in 2022..50 thousand pounds。

Despite the uncertain macroeconomic environment, strong growth in the first half of 2023 will continue until the third quarter.。Given the current trading conditions and strong sales channels, we are confident for the future and expect full-year results to beat expectations.。"

In addition, Strafford-Taylor mentioned that with the current good trading conditions and strong sales channels, the company's confidence in the future has increased.。

Whether to cut capital？

In a separate announcement, Equals announced plans to propose a £25 million capital reduction as part of the company's general meeting scheduled for 3 October 2023.。If approved, the capital reduction will pave the way for future returns to shareholders (including dividends and share buybacks).。

The capital reduction aims to reduce the company's share premium account from £25,000,000 to 31,648,823..£20, the proposal is subject to approval by the company's general meeting。The cancellation must also be confirmed by the High Court for the reduction to take effect.。If all conditions are met, the capital reduction is expected to be completed by the middle of the fourth quarter of 2023.。

The CEO concluded: "Performance and our continued earnings stream allow us to announce that we intend to make our first distribution of 1 per share in fiscal 2023, subject to the completion of our proposed capital reduction..5p dividend while continuing our growth strategy。"