LONDON (ShareCast) - (Sharecast News) - Finseta reported higher first-half revenue on Wednesday, as it expanded into new markets and broadened its services, though earnings fell as the group lowered its full-year revenue growth outlook.
Revenue rose 16% year-on-year to £5.9m in the six months to 30 June, supported by customer growth and strong performance in the United Arab Emirates following regulatory approval to operate there.

Gross margin eased to 62.7% from 65.7% due to a change in revenue mix.

Adjusted EBITDA declined to £0.3m from £0.8m as the company invested in new initiatives, including its corporate card scheme and preparations for agency banking, which went live after the period end.

Cash stood at £2.4m, with net cash of £0.4m.

Active customers increased to 1,101 from 952 a year earlier, with a further rise in new onboarded clients yet to transact.

Alongside the UAE launch, Finseta established a full-service office in Canada, which began contributing revenue.

The company noted that USD-related business was impacted by tariff-driven volatility in foreign exchange rates, though conditions had since improved.

"This has been another period of significant strategic delivery for Finseta," said chief executive James Hickman.

"We have invested in several initiatives that are diversifying our revenue streams and position us for sustainable growth.

"While our revenue growth has been constrained by global macroeconomic factors, particularly the impact on foreign exchange rates of US trade policy, it is pleasing to see more positive momentum as we progress through H2, albeit to a lesser extent than initially expected.

"In addition, we are particularly excited about the prospects for our Dubai operation, which is performing ahead of our expectations and will make an important contribution to our expected revenue growth for the full year."

The company said it now expected full-year revenue growth of around 11% in 2025, reflecting softer-than-anticipated recovery in USD-related business.

However, it said operating costs would be slightly lower than originally forecast and that recent strategic investments would underpin stronger growth and profitability in the medium term.

At 1225 BST, shares in Finseta were down 19.93% at 17.77p.

Reporting by Josh White for Sharecast.com.

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