AIM-listed fintech Equals has notched a jump in revenue for the first half of 2024, helped by “strong growth” in its solutions platform, as it readies for a possible takeover offer.
The firm, which offers business-to-business payment solutions, reported revenue of £60m over the six months to 30 June 2024. This figure is up £14.9m, or 33 per cent, from the same period last year.
Equals’ solutions business saw its revenue almost double in the half-year to £24.7m, from £13.6m in 2023. The firm noted that solutions’ fee-based revenues are more recurring in nature as customers typically enter into longer-term contracts with agreed monthly minimum fees.
The company added that while its foreign exchange unit saw a “quiet” first quarter of 2024, there was a “strong pick up” in the second quarter that resulted in the business’ income rising to £25.2m over the six months, from £24.7m last year.
Equals noted that FX revenues “are partly reliant on market conditions and volatility in rates leading to increased customer activity”.
The firm said its customer balances grew over the period and that it also renegotiated better rates and margins with its tier-one partner banks. Equals itself had £20.5m cash at the bank at the end of June, with no debt.
Equals is currently facing a potential takeover by a consortium comprising investment management firm TowerBrook Capital Partners and London-based fintech Railsr, chaired by ex-Chancellor Philip Hammond.
Under UK takeover rules, the consortium has until 5pm on 10 July to either make a firm offer for Equals or walk away. The deadline has been extended multiple times since Equals first announced a strategic review last November that included contacting potential buyers.