Equals Group PLC on Tuesday reported a rise in profit for 2024 amid revenue growth, ahead of its planned takeover by a fintech consortium expected to complete in April.
The London-based fintech company and payment platform developer said pretax profit grew 11% to £10.1 million in 2024, from £9.1 million in 2023.
Revenue for the year rose 38% to £131.7 million from £95.7 million, and total operating expenses increased 47% to £63.9 million from £43.4 million.
Earnings before interest, tax, depreciation and amortisation increased 9.9% to £18.8 million from £17.1 million.
Equals Group declared a special dividend of 5 pence per share for the year, under the terms of its pending takeover by London-based investor consortium Alakazam Holdings Ltd.
Alakazam owners include Towerbrook Capital Partners UK LLP, JC Flowers & Co UK LLP and shareholders of Railsr, the trading name for Embedded Finance Ltd.
Equals shareholders will receive a total of 140p per share in cash, comprised of a 135p cash consideration and the special dividend. The offer valued Equals’ share capital at around £283 million on a fully diluted basis.
Shares in Equals Group were down 0.3% at 139.16 pence each in London on Tuesday morning, giving it a market capitalisation of £264.9 million.
‘We continued to grow strongly in 2024, achieving strong levels of revenue, adjusted Ebitda, and operational cash generation. We also expanded internationally, broadened our product offering and hired greater talent to take the group forward,’ said Chief Executive Officer Ian Strafford-Taylor.
‘However, and as previously stated, the highly competitive nature of the payments market, and the considerable investment required to ’stay-ahead-of-the-game’ led the board to conclude that private ownership by well-funded partners would be a better route for the group with shareholders having approved the terms of the acquisition, which is now expected to complete on 14 April 2025.
‘These results are therefore likely to be the last that Equals announces as a public company and I would like to thank shareholders for their continued support for the business since our [initial public offering] in 2014.’
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