Equals (AIM:EQLS), a provider of payment solutions to SMEs, published a trading update for the 11 months of 2022. It ended the period with revenue of £63.5 million, which is a significant 61% increase compared to £39.5 million reported in the same period a year earlier.
According to Monday's filing, the daily revenue increased to £270,000 per day from £170,000 in 2021. Based on these values, the Management Board is confident that Equals' full-year results will exceed current market expectations.
The company has continued to invest in technology and product development and has increased its resources in marketing , sales and compliance departments. The revenue category defined as 'Solutions' recorded the most significant year-over-year increase. It grew 297% from £3.5 million in 2021 to £13.9 million in 2022.
"We are extremely pleased to see a 61% increase in our revenues in the 11 months ended 30 November with all segments performing strongly. Our revenue growth has continued in the face of difficult macro environments and this augurs well for 2023 and beyond. We continue to invest in people, products and technology to drive our growth strategy and look forward to updating the market in early January with our full year trading statement," Ian Strafford-Taylor, the Chief Executive Officer of Equals, said.
Following the publication of Monday's trading update, EQLS shares gained more than 6% at the opening of the London session, testing £1.00 per share, which is the highest level since September. However, at the time of writing, the price is retreating to £0.95, shearing the day's gains to 1.5%.
A Modest H1 2022 Net Profit
Equals has not yet released its third quarter report, but in September, it shared financials for the entire first half of 2022. The data showed that the company managed to post a modest profit of £0.8 million, rebounding from a net loss of £1.2 million reported in the same period a year earlier.
However, partial figures for the third quarter showed a more significant increase in revenue. In the period from 1 July to 5 September, they amounted to £13.3 million, growing year-on-year by 55%.
Last week, Equals announced that it intends to acquire the open banking startup , Roqqett for £2.25 million. The acquisition is currently awaiting approval from the UK's financial markets regulator, the Financial Conduct Authority (FCA).
