Equals Share Discussion Threads

[carcosa] 17/1/2024 05:37

People forget that banks have tried having a fintech arm to their business before and failed e.g. Barclays, Santander etc. Zing just happens to be the latest publicised attempt.

Whether they can deliver from a service point of view is highly questionable. They do a great job servicing a segment of the market with very large scale but can they really cope or want to do transactional business? There seems to be very little desire in doing so. Even the latest HSBC service is little more than putting a toe in the water, indeed it is only UK based.

I think it's a tough sell when banks have a historic bad reputation wrt customer service. Banks may find it easier to acquire fintech businesses as a stand alone division rather than (impossibly?) try to integrate fintech with their legacy systems. Given fintech high valuations e.g. Wise etc., banks may find it not within their risk profile to do so.

However the amount of fintech business demand is forecast to grow at a tremendous rate for many years to come so we are far more likely to see new entrants into this market anyway, whether or not traditional banks enter into it.

[earwacks] 17/1/2024 02:52

Slightly surprised no mention of HSBC launch of Zinger no payment fee to non account holders. Paul Scott flagged this up in passing at the beginning of the year after an article in the FT. Clearly the banks a little belatedly are realising just how sloppy they have been.

[daveme] 16/1/2024 14:34

I would like to think any take out price would be significantly higher than 170p. This company is on the verge of significant growth into Europe that will propel the share price forward over the next 2/3 years. Now is not the time to bail out for 170p at the beginning of that growth, if that is the offer on the table. Hopefully management realise this.

[qs99] 16/1/2024 11:24

Great update Brummy thanks.

Totally agree, Equals showing 37% rev growth and c.£20m EBITDA is outstanding, so what some profit taking, but EV/EBITDA ratio for this massively scalable platform which is continuing to grow at an outstanding in a big market, in my opinion is just too low especially as cash pile is mounting.

DYOR, looking forward to more great progress next year and thereafter if independent, or as you say, c.£1.70 take out price if now.

CHeers

[66fingers] 16/1/2024 08:59

I wonder by how much the 'strategic review' has affected profit and turnover growth? While we may all ultimately benefit I don't think it is positive for existing customer relationships and generating new business. Perhaps that's why the company was only able to report profits in line with expectations, rather than its recent history of exceeding expectations.

[brummy_git] 16/1/2024 08:30

Another impressive trading update from top flight international payments & fintech platform Equals today.

All the details here.

[masurenguy] 16/1/2024 08:21

Some profit taking from quite a lot of retail sells at the open. Some people take the mantra "Buy on the rumour, sell on the news" too literally ! The shareprice should recover once this response has been completed. Meanwhile, there is an opportunity for some ongoing investors to top up !

[melton john] 16/1/2024 08:17

"in-line with current market expectations" probably.

[66fingers] 16/1/2024 08:14

Great results, why the share price drop?

[qs99] 16/1/2024 07:49

Cracking update. Love the cash levels, just shows what a cash generative business this is, despite the ongoing investment.

quarter on quarter revenue increases of meaningful size and revenue pd keeps moving up.

Great stuff well done the team, only just scratching the market surface IMO....

DYOR

[masurenguy] 16/1/2024 07:22

Pre-Close Trading Update and Notice of FY-23 Results

Equals Group pre-close trading update for the financial year ended 31 December 2023. Unaudited revenues for the year were £95.5m, up 37% (FY-22: £69.7m) with continued growth in Adjusted EBITDA. This robust trading has also resulted in approximately £18.3m of cash at bank at 31 December 2023, a further £2.3m cash-in-transit over year-end and received on 4 January 2024, and, having disbursed approximately £7.0m relating to acquisitions, earn-outs and a maiden dividend during 2023. As a result, the Board expects the Group's FY-23 results to be in-line with current market expectations.

[amt] 16/1/2024 07:13

Very good.
Ebitda in excess of 20m fits in with another 10m of cash generated in H2 ?

[missmimz] 08/1/2024 11:15

EQUALS website now has updated to W/C 15 January, 24 from 08 Jan as pre close Trading update, so next week sometime.

[gerihatrick] 08/1/2024 10:40

I have a note to say that the pre close trading update was due today...but no sign yet!

[colinroberts] 08/1/2024 08:25

Last year was 17th Jan.

[66fingers] 08/1/2024 08:13

Shouldn't the trading update be out by now?

[qs99] 02/1/2024 11:04

IMO fact that this is continuing to trend higher, bodes well....have bought a few more to add to a not insubstantial holding already as a decent TU will see this through £1.50+ IMO...broker targets already much higher than that, and anything super positive and upgrades v. possible IMO/DYOR

[redartbmud] 02/1/2024 11:04

QS

The prospective buyer would carry out their own due diligence, irresepective of anything that the company announces.

red

[qs99] 02/1/2024 11:00

going to be an interesting TU with the bid backdrop...DYOR but if I was management I would want to show the best I could ....let's see. DYOR

[ashleyjv] 02/1/2024 10:53

Why would they hold back trading update?

Full disclosure would mean that the company is sold at a fair price

[missmimz] 02/1/2024 10:30

Still showing as w/c 8 January, 24 as pre close Trading update on important dates page on EQUALS website, so here's hoping.

[arieljcohen] 02/1/2024 10:01

do we know if we're still going to get the detailed end of year trading update next week whilst the takeover rules are in place?

I hope the takeover talks haven't had any impact on growing revenue. I was hoping EQLS would beat their increased market expectations

[earwacks] 02/1/2024 08:17

Firstly Agfx maybe competitors to a degree but certainly not in the same league as eqls. Agfx have lost two founder directors. The first allegedly to Covid and then ‘long Covid’ . Hardly justified the fire sale of all his shares12 million shares. Then his successor fell on his sword closely followed by the CFO, soon after a warning on a slow down. Compare that to a company that has upgrade results and confidently now trades in line. They were also proud to declare how they look after valued staff in troubled times. Then we come to the business, the breakthrough into Europe, increasing margins and the ability to increase pricing in a competitive market. Deer won’t be the only company interested in Eqls but it will be a good exercise in valuing the business and who might actually be the best fit. I feel a sell out is more likely than not now, but as stated by others it will take time for those interested to decide what eqls is worth to improving their own business.

[redartbmud] 27/12/2023 13:19

Extended to Jan '24.

Totally predictable.

red