Finseta Plc · LSE:FIN
Finseta — H1 2024 Earnings Presentation
23 slides from Finseta's earnings presentation, 2024
Slide 1: Interim Results 2024
PREMIUM PAYMENT SOLUTIONS Interim Results 2024
Slide 2: Introduction
Introduction
Slide 3: Presenters
Presenters James Hickman Judy Happe CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER Over 25 years in the Financial Services industry with Judy has extensive experience of raising growth the last 20 years' experience within the FX and capital and executing M&A strategies at digital payments industrie
Slide 4: About Finseta
About Finseta Proprietary technology platform WHAT WE DO? Currency risk management, payment and electronic 165+ COUNTRIES account services CUSTOMERS CAN Solving currency and Innovating through SEND FUNDS TO payment challenges partnerships and for businesses and expanding its payment capabilities ind
Slide 5: 2024 H1 Highlights
2024 H1 Highlights • Record revenue – 40% y-o-y growth Excellent financial performance • Substantial growth in profit and cash from operations • Increase in number of active clients and average Investment in sales team is transaction value driving growth • Expansion of introducer network Expansion o
Slide 6: Our Strategy
> Our Strategy
Slide 7: Our Strategy
Our Strategy Expanding our Geographic and Market footprint Finseta Enhancing our Platform product capabilities Future-proofing the business 7 CONFIDENTIAL | COPYRIGHT 2024
Slide 8: Progress against Strategy
Progress against Strategy
Slide 9: Progress: Expanding geographic and market footprint
Progress CANADA REGULATORY Expanding our Geographic and Market footprint LICENCE (2024) UAE REGULATORY LICENCE Delivering our existing Expansion of internal and Regulatory Expansion (2024) product to new markets external sales capability ▶ Canadian licence ▶ Continued increase in ▶ Commencement of H
Slide 10: Progress: Enhancing product capabilities
Progress Global eIDV SCREENING Enhancing our product capabilities Card programme Expanding the Finseta Compliance System launch 2024 Payment Network Development ▶ On track for H2 2024 ▶ Added three new ▶ Improved customer Dynamic Risk launch payments onboarding process Based ONBOARDING counterpartie
Slide 11: Progress: Future-proofing the business
Progress Future-proofing the business Brand Financial Platform ▶ Completed renaming from ▶ Increased profit ▶ Continued development Cornerstone FS to Finseta and enhancements ▶ Increased revenue ▶ Supported brand ▶ Addition of counterparties recognition through global ▶ Increased margin via API spon
Slide 12: 2024 H1 Financial Highlights
2024 H1 Financial Highlights
Slide 13: H1 24: Sustained delivery whilst investing for growth
H1 24: Sustained delivery whilst investing for growth Revenue Gross Margin ADJ. EBITDA £5.1m 65.7% £0.8m +40% +470bps +337% (H1 2023: £3.6m) (H1 2023: 61.0%) (H1 2023: £0.2m) PBT Cash From Operating Activities Net Cash Position £0.6m £0.8m £0.6m +2,349% +587% +249% (H1 2023: £0.0m) (H1 2023: £0.1m)
Slide 14: Continued top line delivery, now 100% direct
Continued top line delivery, now 100% direct Revenue (£m) YOY Growth £'000 H1 24 H1 23 24/23 6.0 Revenue 5,060 3,602 40% 5.1 5.0 ▶ Underlying revenue growth of 54% - excluding white label in H1 2023 4.0 3.6 ▶ 2-year revenue CAGR 63% 3.0 1.9 2.0 1.0 0.8 952 +29% ACTIVE CUSTOMERS AVERAGE TRADE SIZE -
Slide 15: Focused investment evident in cost base
Focused investment evident in cost base • Targeted investment remains key focus • Staff cost growth reflects investments into direct sales team, increased performance-related bonuses and investment in card program • Sales & marketing costs incurred to support group re-branding • Other includes incre
Slide 16: Fuelling profitability growth
Fuelling profitability growth YOY Growth Adjusted EBITDA (£m) £'000 H1 24 H1 23 24/23 1.0 0.8 Revenue 5,060 3,602 40% 0.8 Gross Profit 3,326 2,196 51% 0.6 Gross Margin 66% 61% 5% 0.4 0.2 0.2 Adjusted costs (2,495) (2,006) 24% 0.0 Adj. EBITDA 831 190 337% (0.2) Margin 16% 5% 11% (0.4) (0.6) Adj. prof
Slide 17: Strong cash flow conversion
Strong cash flow conversion YOY Growth £'000 H1 2024 H1 2023 24/23 Profit before tax 569 23 2349% Non-cash items 602 439 37% Finance & investing items (83) (93) -11% Working capital (307) (255) 20% Operating cash flow 782 114 587% Adj. EBITDA 831 190 337% Cash conversion 94% 60% 17 CONFIDENTIAL | CO
Slide 18: Strengthening cash position
Strengthening cash position Period-end cash of: Net cash position (less £2.2m loan notes) of: YOY Growth £2.8m £0.6m £'000 H1 24 H1 23 24/23 Non-current asset additions (249) (215) 16% Subsidiary disposal proceeds 150 300 -50% Deferred consideration (105) - n/a Closing Cash (£m) Investing cash flow
Slide 19: Summary
Summary
Slide 20: Summary
Summary Significant growth in Rename completed Expansion of Agreement signed Received regulatory all financial metrics to Finseta payments with Mastercard licence to operate in capabilities and Canada introducer network On track for significant growth for FY Strengthened foundations for long-term 20
Slide 21: Appendix
Appendix
Slide 22: Prudent approach to adjusted measures
Prudent approach to adjusted measures Share based Acquisition Right of use Interest on Total Adjusted £'000 IFRS compensation related costs asset client balances adjustments measure EBITDA 911 169 (157) (93) (80) 831 Depreciation & amortisation (433) 62 145 206 (227) Profit on disposal of subsidiary
Slide 23: Thank you
Thank you ANY QUESTIONS 23 CONFIDENTIAL | COPYRIGHT 2024