Equals Group (EQLS) H1 2024 earnings summary

Executive summary

• Revenue grew 33% year-over-year to £60.0m in H1-2024, with B2B revenue share rising to 87% and record transaction values of £9.3bn, up 56% from H1-2023.

• Adjusted EBITDA reached £12.7m, up 30% year-over-year, and gross profit margin improved to 57.4% from 52.4%.

• Interim dividend of 1p per share declared, with £1.9m paid as a final dividend during the period.

• Cash at bank increased to £20.5m at 30 June 2024 and £28.3m at 6 September 2024, despite acquisition-related outflows and dividend payments.

• Underlying transactions rose 56% to £9.3bn compared to H1-2023.

Financial highlights

• H1-2024 revenue: £60.0m (+33% YoY); adjusted EBITDA: £12.7m (+30% YoY); gross profit: £34.4m (+46% YoY).

• Adjusted profit after tax rose 26% to £7.8m; basic EPS increased to 2.76p; adjusted EPS up 22% to 4.18p.

• Interest income contributed 16% of total revenue, up from 9% in H1-2023; interest income on safeguarded funds rose to £9.6m.

• Solutions segment revenue grew 82% YoY to £24.8m, now 41% of total revenue.

• Operating profit was £6.6m, up 20% YoY; profit after tax was £5.2m, up 8%.

Outlook and guidance

• Year-to-date revenue as of 6 September 2024 reached £86.9m, up 38% from the same period in 2023.

• Average daily revenue in 2024 YTD is £500k, with Q3 to date at £549k per day.

• Management expects continued growth from API-enabled customers and European expansion, with a strong pipeline for new Solutions customers.

• The board believes the group is well positioned to further increase addressable markets and distribution channels.

• Management highlights scalable technology and ongoing investment in compliance and product functionality.