Equals Group Revenue Hits £45 Million, Up from £31.4 Million Last Year

<p>Equals
(AIM: <a href="https://www.financemagnates.com/tag/equals/" target="_blank" rel="follow">EQLS</a>), a publicly-listed fintech company, released its preliminary
results for the first six months of 2023 today (Tuesday), showing an increase
in revenue and record Adjusted EBITDA. Additionally, the company announced
a proposal to reduce its capital.</p><p>Equals Publishes
Preliminary Report for H1 2023</p><p>The report
shows significant growth in multiple financial metrics, including an increase of 43% in revenue compared to the same period last year. The company also
provided an update on its performance for the third quarter of 2023, indicating
continued strong growth.</p><p>Revenue
rose to £45.0 million, which is up from £31.4 million in H1 2022. This growth is partly
attributed to £13.6 million generated from the Equals' Solutions platform.
Gross profit substantially increased, jumping 59% to £23.6 million. Further, the
gross profit margin improved to 52.4% from 47.4% in the previous year. Adjusted
EBITDA more than doubled to £9.8 million, compared to £4.9 million in H1 2022. On top of that, a jump of 102% in Adjusted EBITDA allowed the company to reach a record high for
this indicator.</p><p>The
after-tax profit amounted to £4.8 million compared to £0.8 million reported in
the same period last year, and the earnings per share (EPS) stood at 2.64 pence
versus 0.38 pence in H2 2022. </p><p>"This
is an outstanding set of results with record revenues combining with improved
gross profit retention to yield enhanced profitability," Ian
Strafford-Taylor, the CEO of Equals Group plc, remarked. </p><p>Although
the results are better than those from a year ago compared to the previous
half-year (H2 2022), the company's revenue has <a href="https://www.financemagnates.com/fintech/equals-posts-43-h2-2022-revenue-uptick/" target="_blank" rel="follow">noticeably declined from £69.7
million</a>.</p><p>Equals
Group has been busy on the operational front as well. The company completed <a href="https://www.financemagnates.com/fintech/equals-acquires-oonex-and-reports-record-revenues-of-45-million/" target="_blank" rel="follow">the
acquisition of Oonex</a>, now rebranded as Equals Money Europe, to gain access to
the European market. <a href="https://www.financemagnates.com/fintech/equals-to-acquire-open-baking-startup-roqqett-for-225m/" target="_blank" rel="follow">Another notable acquisition was Roqqett</a>, an open banking
platform, which has been fully integrated into the company's operations.
Investments have additionally been made in Compliance and Risk functions, and an API
integration to the Equals Platform has been deployed, opening new distribution
channels.</p><p>Equals' Q3 2023
Performance and Future Outlook</p><p>According
to the interim results, the company's performance has carried over into Q3 2023.
Year-to-date revenue stands at £63.6 million, which is an increase of 39% over the same
period last year. Daily revenues have risen to £370,000, compared to
£265,000 in the same period in 2022. </p><p>"The
first half of 2023 saw strong growth which has continued into Q3 despite an
uncertain macroeconomic environment. Given the current trading, and a robust
sales pipeline, we look to the future with increased confidence, and we expect
to be ahead of expectations for the full year," the CEO added.</p><blockquote><p lang="en" dir="ltr"><a href="https://twitter.com/hashtag/EQLS?src=hash&amp;ref_src=twsrc%5Etfw">#EQLS</a> &amp; my favourite expression “Given the strong current trading, and a robust sales pipeline…and we expect to be ahead of expectations for the full year”Wonder if the shares will decisively break through the psychological £1 today?