Pre-Close Trading Update & Notice of FY-23 Results

Equals Group PLC

16 January 2024

 

For immediate release

16 January 2024

Equals Group Plc

('Equals', the 'Group' or the 'Company')

Pre-Close Trading Update and Notice of FY-23 Results

Equals Group plc (AIM:EQLS), the fintech payments group focused on the Enterprise and SME marketplace, announces, consistent with prior years, a pre-close trading update for the financial year ended 31 December 2023 ('FY-23' or the 'year').

Unaudited revenues for the year were £95.5 million, up 37% (FY-22: £69.7 million) with continued growth in Adjusted EBITDA.

This robust trading has also resulted in approximately £18.3 million of cash at bank at 31 December 2023, a further £2.3 million cash-in-transit over year-end and received on 4 January 2024, and, having disbursed approximately £7.0 million relating to acquisitions, earn-outs and a maiden dividend during 2023.

As a result, the Board expects the Group's FY-23 results to be in-line with current market expectations.

As shown in the table below, revenue per working day increased by 36.4% over FY-23.  The revenue growth continues to be driven by Solutions revenues augmented by B2B growth across other product lines.

Period	Revenue £ millions	Working days	Revenue per working day in £000's	% change on same period in prior year
H1-22	31.4	123	255.3	87.3%
H2-22	38.3	127	301.6	43.0%
FY-22	69.7	250	278.8	60.0%
H1-23	45.0	124	362.9	42.1%
H2-23	50.5	127	397.6	31.8%
FY-23	95.5	251	380.5	36.4%

Commenting on the Trading Update, Ian Strafford-Taylor, Chief Executive Officer, said: "We have delivered a strong financial performance in 2023 as the Group continues to benefit from its strategy of investment into technology and connectivity. Whilst the Strategic Review announced on 1 November 2023 remains ongoing, we will continue with our plans in 2024 and look forward with confidence in our proposition, our teams, our technology and, ultimately, our sustained growth prospects."

Notice of FY-23 Results

All 2023 reported financial figures remain subject to audit and Equals is pleased to announce that it will report its final results for the year ended 31 December 2023 in the week of 15 April 2024.  The Group will also provide an update on trading in Q1-24.  A further announcement will be made nearer the time to confirm a precise date as well as meeting arrangements for sell-side analysts and retail investors.

Profit Estimate

The below guidance in relation to full year expectations for the year ended 31 December 2023 (the 'Profit Estimate') which is included in today's trading update constitutes an ordinary course profit estimate for the purposes of Note 2 on Rule 28.1 of the Takeover Code:

"As a result, the Board expects the Group's FY-23 results to be in-line with current market expectations."

For the purposes of Rule 28 of the Takeover Code, the directors of the Company confirm that, as at the date of this announcement, the Profit Estimate remains valid, that it has been properly compiled on the basis of the assumptions stated below and that the basis of accounting used is consistent with Equals' accounting policies which are in accordance with International Financial Reporting Standards and those that Equals applied in preparing its financial statements for the year ended 31 December 2022 and those applicable for the year ended 31 December 2023.

Further information on the basis of preparation of the Profit Estimate, including the principal assumptions on which it is based, is set out below.

Basis of preparation and principal assumptions

Although the financial period to which the Profit Estimate relates has been completed, the Company's audited accounts for the year ended 31 December 2023 are not available as at the date of this trading update.  Accordingly, the Profit Estimate is based on the Company's unaudited interim results for the six months ended 30 June 2023 and the Company's unaudited management accounts for the six months ended 31 December 2023.

The Profit Estimate has also been prepared on the basis of the assumptions listed below.  The first assumption relates to matters which are both outside and within the influence or control of the Company; the second assumption relates only to matters which are outside the influence or control of the Company:

·    no events will arise between the date of this trading update and the date on which the Company announces its audited results for the financial year ended 31 December 2023 which would require incorporation in the FY-23 results in accordance with International Financial Reporting Standards and/or the Company's accounting policies; and

·    there will be no retrospective change in legislation or regulatory requirements that will have a material impact on the Company's operations.

- Ends -

For more information, please contact:

Equals Group plc
Ian Strafford-Taylor, CEO Richard Cooper, CFO	Tel: [phone] www.equalsplc.com
Canaccord Genuity (Nominated Adviser & Broker)
Max Hartley / Harry Rees	Tel: [phone]

Buchanan (Financial Communications)
Henry Harrison-Topham / Stephanie Whitmore / Toto Berger [e-mail]	Tel: [phone] www.buchanancomms.co.uk

Notes to Editors:

Equals Group plc is a technology-led international payments group augmented by highly personalised service for the payment needs of SME's whether these be FX, card payments or via Faster Payments. Founded in 2007, the Group listed on AIM in 2014. For more information, please visit www.equalsplc.com.

 

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