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(Alliance News) - Shares in e-banking and payments firm Equals Group PLC fell sharply Thursday after a steep rise in costs saw interim profit dip, despite revenue jumping over a fifth.
Shares in Equals were 8.1% lower at 91.40 pence in London on Thursday.
For the six months ended June, pretax profit narrowed 1.5% to GBP1.99 million from GBP2.02 million the year prior. This was despite revenue rising 22% to GBP14.6 million from GBP12.0 million the year before.
Profit performance was held back by administrative expenses jumping to GBP9.9 million from GBP7.4 million the year prior.
"The business has delivered an excellent first half performance, continuing into the second half, both operationally and financially," Equals Chief Executive Officer Ian Strafford-Taylor said. "Our strategic focus on rationalising supply chain through direct connectivity to payment schemes and other measures are proving successful, as demonstrated by our improving margins as we pay away less direct costs."
Equals - known as FairFX Group PLC until late June - does not currently pay a dividend.
"The increasing diversity of our product range, adding non-FX products to our heritage revenue streams, has helped the group achieve this against a less than benign macro-economic environment and weaker sterling," Strafford-Taylor added.
"With the steps we have achieved already and new revenue streams coming in during the rest of the year, the outlook for the group's full financial year remains positive," Strafford-Taylor continued. "Against this background, we remain confident that the full year results will be in line with expectations."
In a separate announcement, Equals hired former GVC Holdings PLC finance chief Richard Cooper as its new finance director from October 14.
Cooper will fill the newly-created board-level post, with current non-board Chief Financial Officer Tony Quirke remaining at the firm in a "senior executive role."
Strafford-Taylor welcomed Cooper to Equals, adding that "we look forward to the benefit of his extensive experience in growing public companies, at a time where we seek to expand through a combination of acquisitions and organic growth."
By Ahren Lester; ahrenlester@alliancenews.com
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