9th Jul 2025 12:51
(Alliance News) - Finseta PLC on Wednesday said it expects to deliver full-year results in line with internal expectations, despite a drop in first-half profit, as it ramps up new strategic initiatives and sees robust levels of customer acquisition.
The London-based foreign exchange and payments solutions company expects to report a 16% year-on-year increase in revenue to GBP5.9 million for the six months to June 30, up from GBP5.1 million.
However, adjusted earnings before interest, tax, depreciation and amortisation are anticipated to fall to GBP300,000 from GBP800,000, reflecting investment in new offerings launched during the period.
Interim results are expected to be published in September. Shares in Finseta were down 26% to 22.87 pence on Wednesday afternoon in London.
Gross margin is expected to come in at 62%, down from 66%, due to a change in revenue mix.
Chief Executive Officer James Hickman called the half-year "a milestone period" for the company, highlighting the launch of its corporate card programme and the expansion of full-service operations in Dubai and Canada.
While global economic conditions led to delays in some high-value customer transactions, particularly in international real estate, Hickman said the company onboarded a significantly higher number of new customers than expected in the period.
"We remain on track to deliver significant revenue growth for financial 2025 and look to the future with great confidence," Hickman said.
The company's corporate and international client base grew during the period, with corporate customers now contributing 58% of total revenue, up from 38% a year earlier.
Cash generated from operations was GBP300,000, in line with adjusted Ebitda. Cash and equivalents stood at GBP2.4 million as of June 30, down from GBP2.6 million at the end of 2024. Net cash was GBP400,000.
Looking ahead, Finseta expects customer activity to pick up in the second half as foreign exchange markets stabilise. It also anticipates stronger revenue contributions from its newly launched initiatives.
By Eva Castanedo, Alliance News reporter
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