Fintech star Wise PLC (LSE:WISE) is due to report its full-year results on Tuesday, a day after it revealed chief executive Kristo Kärmann is being investigated by the Financial Conduct Authority over a tax default.
Further disruption to the company's preparations, not to say pain, was experienced by chief financial officer Matthew Briars, who has had just over a month to oversee the results after returning to work from a serious bicycle accident in February.
Last month the company said Briars' recovery “is ongoing and his return to work will be gradual”.
With it being around five months since we last had a proper trading update from the payment transfer fintech, investors will be keen to see these numbers, especially with the shares down 60% since the Shoreditch-based startup, which was formerly known as TransferWise, floated in a much-trumpeted experimental listing a year ago.
Having been part of the trend of financial technology companies that proliferated during the low interest rates of the 2010s, it is unknown what long-term impact high inflation will be on the sector as pressure is exerted on consumer spending and rising rates of interest may similarly impact customer deposits in digital accounts and increase the cost of new capital.
The January trading update revealed there were 4mln customer transfers in its third quarter, moving over £20bn of currency, or a 38% increase on the prior year and 15% growth on the prior quarter.
At its interims in November, it predicted annual percentage revenue growth in the mid-to-high 20s, with revenue in the six months to the end of September up 33% to £256.3mln while underlying earnings (EBITDA) jumped 20% to £60.6mln but EBITDA margins eased to 23.6% from 26.3%.
In its prospectus, Wise said it does not expect to declare or pay any dividends for the foreseeable future, as it plans to continue to re-invest profits into infrastructure and products with the aim of driving "volume, scale, and will ultimately be the best way to grow long-term shareholder value".
Petrofac and Biffa
Also on Tuesday, we get to hear from oil and gas infrastructure specialist Petrofac PLC after it warned in May that headwinds are building, with sector peer Hunting PLC later in the week.
There will be results from Biffa PLC (LSE:BIFF) too, which come after the company received an unsolicited bid at 445p per share earlier this month.
While the board are minded to recommend the bid, analysts see a good chance of a counter-bid amid the heightened mergers & acquisitions interest in the UK of late.
“We see this as low for the quality and potential of the business, but one that risk-averse investors might choose to accept given…the quantification for Biffa of up to £153m of liability in an industry-wide tax dispute,” said broker Peel Hunt.
Announcements on Tuesday 28 June:
Trading statement: ICG Enterprise Trust (LSE:ICGT) (ICG Enterprise Trust (LSE:ICGT)) PLC, Petrofac PLC, Victorian Plumbing Group PLC (AIM:VIC) (Victorian Plumbing Group PLC (AIM:VIC))
Interims: Oxford BioDynamics PLC (AIM:OBD) (Oxford BioDynamics PLC (AIM:OBD))
Finals: Appreciate Group PLC (LSE:APP) (Appreciate Group PLC (LSE:APP)), Biffa PLC (Biffa PLC (LSE:BIFF)), IG Design Group PLC (LSE:IGR) (IG Design Group PLC (LSE:IGR)), Wise PLC (Wise PLC (LSE:WISE))
AGMs: 4D Pharma PLC (AIM:DDDD, NASDAQ:LBPS, OTC:FRPRF) (4D Pharma PLC (AIM:DDDD, NASDAQ:LBPS, OTC:FRPRF), 4D Pharma PLC (AIM:DDDD, NASDAQ:LBPS, OTC:FRPRF)), Airtel Africa PLC (LSE:AAF) (Airtel Africa PLC (LSE:AAF)), Bay Capital PLC (LSE:BAY) (Bay Capital PLC (LSE:BAY)), British & American Investment Trust plc, Creo Medical Group PLC (AIM:CREO) (Creo Medical Group PLC (AIM:CREO)), Futura Medical PLC (AIM:FUM, OTC:FAMDF) (Futura Medical PLC (AIM:FUM, OTC:FAMDF), Futura Medical PLC (AIM:FUM, OTC:FAMDF)), Immupharma plc, Katoro Gold PLC (AIM:KAT) (Katoro Gold PLC (AIM:KAT)), Sound Energy PLC (AIM:SOU) (Sound Energy PLC (AIM:SOU)), UK Oil & Gas PLC (UK Oil & Gas PLC (AIM:UKOG)), Westminster Group PLC (AIM:WSG) (Westminster Group PLC (AIM:WSG))
Economic announcements: House price index (US), Consumer confidence (US)