Equals Group Plc (LON:EQLS) has reported a surge in revenues and earnings for 2019 despite what it said were “challenging market conditions” caused by record-low currency volatilities.
In a trading update, the e-banking and international payments specialist said adjusted earnings (EBITDA) are expected to be 30% higher than 2018, while revenue is forecast to increase by around 20%.
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Equals also said that a decision to shift its focus toward “more profitable relationships” with corporate and B2B customers had been delivered, with 52% of 2019 revenues generated from B2B compared to 37% in 2018.
Meanwhile, 71% of revenues were derived from Corporate and B2B compared to 57% last year, which the company said pointed to “stronger B2B revenue growth in 2020”.
Looking ahead, the company said a “more encouraging” political and economic backdrop and a strong pipeline of product enhancements gave it a positive outlook for 2020, with trading in January to date cited as “encouraging”.
Equals added that steps taken in “systems, connectivity and supply chain rationalisation” in 2019 and previous years were expected to yield “further growth in revenues and profits combined with positive cash generation in 2020”.
The company also said it is in a strong position to “complete and integrate further acquisitions” in the new year, with its year-end cash balance standing at £16.4mln. Further gains are also expected in 2020 from realising around £1mln in identified cost saving opportunities.
The shares were down 9.3% at 70.2p in early deals on Monday.