Finseta’s strategic expansion fuels investor optimism

Finseta Plc

Finseta’s recent financial disclosures reveal a company not only experiencing robust growth but also strategically positioning itself for sustained success. With a significant uptick in revenue and a clear roadmap for future expansion, Finseta is capturing the attention of investors seeking opportunities in the fintech sector.

In the fiscal year 2024, Finseta reported a 26% increase in revenue, reaching £11.4 million, up from £9.6 million the previous year. This growth is attributed to a 16.8% rise in active customer accounts, totaling 1,059, and the successful launch of new products, including a corporate card scheme and mass payment solutions. The company’s expansion into markets such as Canada and the UAE further underscores its commitment to broadening its global footprint.

Financially, Finseta’s adjusted EBITDA rose to £2.0 million from £1.7 million, with net cash increasing to £0.6 million from £0.2 million. Gross margins improved to 65.7% from 63.4%, reflecting operational efficiencies and strategic investments in infrastructure and compliance systems. These enhancements are designed to support the company’s growth trajectory and ensure robust risk management practices.

Looking ahead, Finseta is projecting a 32% increase in revenue for fiscal year 2025, aiming for £15.1 million. Adjusted EBITDA is expected to grow by 60% to £1.7 million, with earnings per share anticipated at 1.2p. By fiscal year 2026, forecasts suggest revenues could reach £19.6 million, with EBITDA at £4.2 million and EPS at 4.2p. These projections position Finseta as a compelling investment opportunity, particularly given its current share price and growth potential.

CEO James Hickman emphasised the company’s strong start to 2025, highlighting continued customer growth and the positive impact of new product offerings. He expressed confidence in Finseta’s ability to deliver sustained value to shareholders, citing the company’s enhanced business foundations and strategic initiatives.

Finseta Plc (LON:FIN), formerly Cornerstone FS PLC, is a United Kingdom-based foreignexchange and payments company offering multi-currency accounts and payment solutions to businesses and individuals through its global payments network.

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