Equals Group (EQLS) investor relations material

Executive summary

• Revenue grew 38% year-over-year to £131.7m, with gross profit up 41% to £73.9m and adjusted EBITDA up 37% to £28.3m.

• Profit after tax was £7.4m, down 4% from last year, impacted by higher administrative expenses and exceptional items.

• B2B revenue share increased to 86%, reflecting a strategic pivot from B2C and strong growth in the Solutions platform.

• The group is being acquired by Alakazam Holdings Bidco for 140p per share, including a 5p special dividend, with completion expected in April 2025.

• Headcount rose 9% to 400, with investments in compliance, technology, and international expansion.

Financial highlights

• Transaction volumes rose 47% to £18.2bn; revenue up 38% to £131.7m; gross profit up 41% to £73.9m year-over-year.

• Adjusted EBITDA increased 37% to £28.3m; adjusted profit after tax up 49% to £19.6m.

• Interest income on safeguarded funds nearly doubled to £21.9m, driven by higher customer balances.

• Cash at bank at year-end was £29.2m, up from £18.7m; cash per share rose to 15.5p.

• Two ordinary dividends totaling £3.8m were paid, plus a 5p special dividend as part of the acquisition.

Outlook and guidance

• Management expects continued strong growth, supported by investments in technology, compliance, and international reach.

• Headcount growth will slow relative to revenue expansion in 2025.

• The group anticipates further market share gains in the B2B payments sector.