Shares in Finseta plc (AIM:FIN) dropped 20% on Wednesday after the foreign exchange and payments group cut expectations for the year, saying its recovery in dollar-related business had been weaker than anticipated.
The company, which provides multi-currency accounts and payment services to businesses and individuals, reported a 16% rise in revenue to £5.9 million in the first half of 2025.
But it warned that growth for the full year is likely to come in at about 11%, lower than the market had hoped, as trading in US dollar transactions continues to lag.
Adjusted earnings before interest, tax, depreciation and amortisation fell to £0.3 million, down from £0.8 million a year earlier, as the group invested in new strategic initiatives. The company said the spending was aimed at broadening its services and supporting growth over the medium term.
Cash on hand at the end of June stood at £2.4 million, with net cash of £0.4 million. Gross margins slipped to 62.7% from 65.7% due to a change in revenue mix.
Finseta highlighted progress in expanding its international reach, including regulatory approval to provide payments services in the United Arab Emirates, where it has already seen strong revenue growth, and the opening of a full-service office in Canada.
It also launched a corporate card for business clients and, after the reporting period, implemented agency banking to strengthen its offering.
The group said it continues to keep a close eye on costs and expects total operating expenses to be slightly lower than forecast for the year.
Management added that, while near-term trading is proving slower than expected, recent investments will enable the company to accelerate growth and improve profitability in the medium term.
The shares fell 4.4p to 17.79p.