Equals (AIM:EQLS), the fast-growing B2B focused e-banking and international payments group, announces its interim results for the six months ended 30 June 2020 (the 'period' or 'H1-2020').
H1-2020 Financial Highlights
Underlying transaction values
(Loss)/Profit after taxation
Group revenue up to £13.8 million
B2B revenue increased year-on-year by 32% as the Group continues its focus on SMEs
B2B now represents 66% of total revenue up from 50% in H1-2019 and 60% in H2-2019
Gross profit held firm, lower by only 6% despite disruption caused by Covid-19
Gross expenditure lower by 26% on H2-2019 through cost reduction exercises
Adjusted EBITDA* of £0.7 million
46% reduction in loss after tax compared to prior six months, resulting from lower capitalisation and fewer exceptionals
House funds £7.6 million as at 18 September 2020 (as reported on 29 June 2020: £7.7 million)
Post period end Highlights
International Payments business resilient to-date in Q3-2020 at £3.8 million (£68k per day) compared to Q2 -2020: £3.5 million - (£58k per day)
Banking Services remain flat, but better than expected
Travel focused product lines continue to be impacted by Covid-19 travel restrictions and lack of consumer confidence
Corporate Expenses platform recovering to pre-Covid-19 levels
Revenue per day £114k in Q3-2020 to date versus £93k per day in Q2-2020
Commenting on the Interim Results, Ian Strafford-Taylor, CEO of Equals Group plc, said:
"We believe it is testament to the quality of the business and the resilience of our B2B focused model that we are reporting both an increase in revenue and decrease in underlying expenditure against the headwinds posed by a combination of Covid-19 and the changes forced upon the business as a result of the demise of Wirecard.
"Our revenues continue to grow against this unprecedented backdrop and we have not yet completed our exercise of cost savings which will benefit the second half of the year. With a stable cash position, we remain positive about our future prospects and although we are conscious of the potential for further disruption as a result of Covid-19, and indeed Brexit, we remain confident about the outlook for the Group."