Equals Group PLC – EQLS – Trading Update

Equals Group PLC – EQLS – Trading Update

Equals (AIM:EQLS), the fast-growing B2B focused e-banking and international payments group, is pleased to provide the following update on the Group's trading for the six month period ended 30 June 2020 ('H1-2020' or the 'period') and also for the 14 working days up to 20 July 2020.

 

Revenues

 

Against the challenging background of the Covid-19 pandemic, the Group managed to achieve further growth in H1-2020, with total revenues of £13.7 million (H1-2019: £13.6 million*).

 

Excluding B2C Travel Money (cards and cash), revenues of £12.3 million were 23% ahead of H1-2019 (£10.0 million).  The Group's strategic focus on B2B revenue streams over its legacy travel money focus has enabled the business to trade well throughout H1-2020.  B2B represented 66% of total revenue in the period versus 51% in H1-2019.

 

Overall, B2B revenues at £9.0 million were 30% higher than in H1-2019 (£6.9 million), while B2C revenues were 29% lower at £4.7 million (H1-2019: £6.7 million), principally owing to the Covid-19 pandemic.

 

International Payments was the Group's strongest performing segment, supported by the acquisitions of Hermex and Casco last year, as well as strong organic growth.  Revenue of £8.2 million was up by £3.4 million or 71%, of which £0.6 million is attributable to organic growth.  International Payments now represents 60% of Group revenue, compared to 35% in H1-2019.

 

Banking revenues were flat overall, although B2B banking began to increase in the latest quarter, benefitting from the FY-2019 investment in the Group's technology infrastructure.

 

Revenue from the Corporate Expenses platform, the Group's B2B card product, fell by 40% to £1.4 million reflecting the radically reduced corporate activity from late-March 2020 due to the Covid-19 pandemic.  However, revenues from this platform have started to recover in recent months.

 

B2C Travel Money (cards and cash) revenue of £1.4 million (down 59%) reflects the Group's strategic focus on B2B revenue streams and the effects of the Covid-19 pandemic hitting volumes in historically strong seasonal months for travel. Travel Money continues to represent a smaller proportion of total revenues, it now being 11% in H1-2020 versus 26% in H1-2019.

 

Further detail on segmental revenue for H1-2020 versus H1-2019 as well as the percentage changes can be viewed in Appendix 1 below.

 

Inevitably there was a slowdown in Q2-2020 across all segments but there has been resilience particularly in International Payments.  Revenue per working day by segment across the last six quarters can be viewed below in Appendix 2.

 

Trading in June 2020, and in the 14 working days to 20 July 2020 was encouraging with average revenues being £111k per day.

 

Travel cash business via both Bureaux and B2C retail cards has begun to pick up gradually and it is anticipated that corporate card revenues will continue to increase from current levels.  The Board remains optimistic for revenue growth, particularly in International Payments, in the current financial year and beyond.

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