Equals Group (EQLS)

Sector:

Financials

Index:

FTSE AIM All-Share

110.00p
   
  • Change Today:
    -0.50p
  • 52 Week High: 131.50p
  • 52 Week Low: 96.20p
  • Currency: UK Pounds
  • Shares Issued: 187.63m
  • Volume: 107,981
  • Market Cap: £206.39m
  • RiskGrade: 292

Equals Group revenues rise despite depressed travel market

By Josh White

Date: Thursday 08 Jul 2021

LONDON (ShareCast) - (Sharecast News) - Technology-led payments group Equals updated the market on its first half of trading on Thursday, reporting revenues of £16.7m, a 21% year-on-year increase despite the continued absence of meaningful travel-related activity.
The AIM-traded firm said revenues in the six month period ended 30 June also rose 11% over the second half of 2020.

Travel-related activity represented less than 5% of revenue in the second quarter, compared to 31% in the third quarter of 2019, which the board said showed the differential between pre-Covid-19 levels, and thus the potential for increased travel money revenues as pandemic restrictions were relaxed.

The board said the "engine of growth" continued to be the company's business-to-business (B2B) initiatives, encompassed in the 'Equals Money' product suite for corporate customers.

Within B2B, it said growth was broad-based, with international payments seeing strong demand for its 'own-name multi-currency IBAN' offering and white-label platform, and the corporate expenses platform achieving record results.

The second quarter was a record three months for the Group, driven by record levels of international payment transactions, record activity on the 'Spend' platform, and buoyant revenues from banking-style products.

The company said it had continued to drive down headcount and reshape its cost base throughout the year thus far.

Headcount remained around 250, but with a "significantly lower" cost footprint, with that now being around £0.9m of base pay per month, compared to £0.96m in June 2020 and £1.2m in January 2020.

Equals said it was continuing to invest its increased revenues in additional product development and marketing to drive further growth.

In addition, it had further strengthened its internal control environment, and provisioned for a greater frequency of external audit requirements in the highly regulated space which it occupied.

For those reasons, the board said that while it was "delighted" with revenue growth, it was not currently anticipating any meaningful change in its clean EBITDA, which the market had forecast in either 2021 or 2022 at present.

However, the firm said it would provide more guidance at the publication of its interims in early September.

The group became operationally cash break-even in the fourth quarter of 2020, and had remained so since.

Equals incurred £0.8m of legacy earn-outs, and had incurred further exceptional redundancy costs as it continued to change the staffing composition.

The company said it was also filing a claim for £1.3m of research and development credits for 2020, and as at 30 June it had £9.2m of cash at bank.

Increased trading activity could mean additional collateral may have to be posted, the board said, and thus about £1.2m was currently used for card pre-funding, regulatory deposits and funding margins with liquidity providers.

Equals said it expected the composition of that funding requirement to change, which should allow about £0.5m to become more freely available over the rest of 2021.

"The hard work undertaken on both product development and cost restructuring over the last 12 months has really paid off, as can be seen from these excellent revenues for the first half," said chief executive officer Ian Strafford Taylor.

"Given the growth trajectory, we remain highly confident about the revenue prospects for the second half of the year."

At 1600 BST, shares in Equals Group were down 7.2% at 43.15p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Equals Group Market Data

Currency UK Pounds
Share Price 110.00p
Change Today -0.50p
% Change -0.45 %
52 Week High 131.50p
52 Week Low 96.20p
Volume 107,981
Shares Issued 187.63m
Market Cap £206.39m
RiskGrade 292

Equals Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
76.73% below the market average76.73% below the market average76.73% below the market average76.73% below the market average76.73% below the market average
80.36% below the sector average80.36% below the sector average80.36% below the sector average80.36% below the sector average80.36% below the sector average
Price Trend
13.20% above the market average13.20% above the market average13.20% above the market average13.20% above the market average13.20% above the market average
Sector averageSector averageSector averageSector averageSector average
Income
13.96% above the market average13.96% above the market average13.96% above the market average13.96% above the market average13.96% above the market average
5.88% below the sector average5.88% below the sector average5.88% below the sector average5.88% below the sector average5.88% below the sector average
Growth
99.11% above the market average99.11% above the market average99.11% above the market average99.11% above the market average99.11% above the market average
98.10% above the sector average98.10% above the sector average98.10% above the sector average98.10% above the sector average98.10% above the sector average

What The Brokers Say

Strong Buy 0
Buy 0
Neutral 1
Sell 0
Strong Sell 0
Total 1
neutral
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Equals Group Dividends

  Latest Previous
  Final Interim
Ex-Div 06-Jun-24 16-Nov-23
Paid 28-Jun-24 07-Dec-23
Amount 1.00p 0.50p

Trades for 19-Jul-2024

Time Volume / Share Price
16:30 542 @ 109.65p
16:26 270 @ 111.00p
16:26 10 @ 111.00p
16:26 1 @ 111.00p
16:26 23,000 @ 109.00p

Equals Group Key Personnel

CEO Ian Alexander Irving Strafford Taylor

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