Two UK-based fintech companies specializing in foreign exchange and payment solutions, Equals Group (LSE: EQLS) and Finseta (LSE: FIN), reported their financial results for the first half of 2024 today (Tuesday). In both cases, revenue and profits increased compared to the same period last year.

Equals Reports 33% Jump in Revenue

Equals Group, which focuses on enterprise and SME markets, saw its revenue jump 33% to £60.0 million in H1 2024, compared to £45.0 million in the same period last year. The company's gross profit margin improved to 57.4% from 52.4%, while adjusted EBITDA increased by 30% to £12.7 million.

“This has been another strong half for Equals, which continues to process transactions at record levels with SME clients and larger corporates recognizing the value of our well-invested proposition,” commented Ian Strafford-Taylor, CEO of Equals Group.

Equals Group Plc @meetequals #EQLS has published a new Regulatory News announcement.
Please click on the below title to see the full release:

Equals Group PLC - Interim Resultshttps://t.co/t1v3ZBASF3 pic.twitter.com/VgXey6OxDj

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The final profit after taxation amounted to £5.2 million, translating to an 8% increase from £4.8 million achieved in H1 2023. In the whole previous year, the company more than doubled its profits, which amounted to £7.7 million.

The company also reported that its B2B segment now represents 87% of total revenue, up from 83% in the previous year. In addition, Equls announced an interim dividend of 1 pence per share, reflecting confidence in its financial position and future prospects.

40% Revenue Jump for Finseta

Meanwhile, Finseta, which offers multi-currency accounts to businesses and individuals, reported a 40% increase in revenue to £5.1 million for H1 2024, up from £3.6 million in H1 2023. The company's gross margin improved by 470 basis points to 65.7%, primarily driven by an increase in the proportion of revenue from direct clients. Profit before tax reached £0.6 million, rising from the flat results of the previous period.

“This has been a period of significant growth for Finseta, which builds on the work we commenced last year to execute our renewed strategy,” James Hickman, CEO of Finseta, stated. “Through expanding our introducer network and payments capabilities, while maintaining a high level of customer service, we have increased the number of active customers and average transaction value.”

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— Finseta (@_finseta) September 10, 2024

Both companies highlighted strategic developments that are expected to drive future growth. Equals Group completed the automation Automation Automation is defined as the procedure of making an apparatus, a process, or a system to operate by mechanical or electronic devices that replace human labor. Additionally, automation is also sometimes referred to as mechanization or robotization. For example, employees have many costly needs, including government regulations. However, robotic workers don’t need much other than some routine maintenance and the occasional bug fix for an equipment malfunction or software bug. There is no overtime Automation is defined as the procedure of making an apparatus, a process, or a system to operate by mechanical or electronic devices that replace human labor. Additionally, automation is also sometimes referred to as mechanization or robotization. For example, employees have many costly needs, including government regulations. However, robotic workers don’t need much other than some routine maintenance and the occasional bug fix for an equipment malfunction or software bug. There is no overtime Read this Term of its “payment sending service” for outbound payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term and achieved functionality parity between its UK and European operations. Finseta, on the other hand, received regulatory approval to provide payment services in Canada and signed an agreement with Mastercard to launch a corporate card scheme later in 2024.

“Looking ahead, the strong trading momentum that was experienced during the first six months of 2024 has been sustained into the second half and we are on track to report significant growth for the full year 2024, in line with the Board's expectations,” added Hickman.