Equals Group (EQLS has reported ‘a strong finish’ for the year to 31 December 2021, as it ended the period with revenue for 4Q21 at £15.3m, up 96% on 4Q20 and up 28% on 3Q21.

The fintech payments group, which is focused on the SME marketplace, reported a strong end to FY21, resulting in unaudited revenue of £44.1 million, an increase of 47% on FY20.

The Company explained that its solutions product stream has generated £3.5m in revenue since its introduction back in May 2021. The Company said this is a demonstration of the revenue potential of the investments made in technology and product during FY19 and FY20.

With its FY21 earnings in line with management expectations, Equals Group said it also in ‘a robust financial position with’ £13.2 million of cash at bank as at 31 December 2021.

To date, early trading for FY22 has continued the ‘strong trend’ seen in FY21, the Company told investors. It added that despite the well-publicised cost inflationary pressures (particularly on payroll and utilities), the Company expects to continue to manage its costs effectively.

Looking ahead, the Company said it will continue to invest between 20% and 25% of its headcount costs into further technology and product developments for FY22. Despite this, the Company expects this to drop below 20% in FY23 as the core capabilities are delivered. 

In addition, the Group will also be increasing its sales and marketing activities to maximise business-to-business revenue growth from its payments platforms – Equals Money, which is targeted at SME’s, as well as Equals Solutions, which is targeted at larger corporates. 

Equals ’‘Travel Money’ (travel cash and personal prepaid debit cards) averaged 5% of revenue in 4Q. The Group said it sees opportunities for a potential bounce-back this year from the FY21 levels of revenue (around £2.8 million) towards FY-19 levels (around £8.0 million).

CEO, Ian Strafford-Taylor, said: “Our repositioning as a B2B focused fintech off the back of our technology and product developments has differentiated us from our peers.  We are now monetising these capabilities, as can be clearly seen by the rapid rise in our revenues.  

He added: “Without the need for additional investment capital, we are able to grow revenues, profits and cash balances whilst continuing to invest in further product developments. Accordingly, we are extremely excited and confident in the future of the Group.”

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