Fonix Share News (FNX)

(Sharecast News) - Fonix reported a strong full-year financial and operational performance on Tuesday, with significant growth in key markets and an expanded commercial offering.

The AIM-traded firm said its total payment volume (TPV) increased 13.1% over the 12 months ended 30 June to £303.3m, while revenue rose 17.3% to £76.1m.

Gross profit reached £17.9m, up 18.5%, which management considered the most critical performance metric for the business.

The company achieved adjusted EBITDA of £13.7m, reflecting an 18.1% increase, while adjusted profit before tax grew 27.3% to £14m.

Adjusted earnings per share saw robust growth, rising 21.3% to 10.8p.

Reflecting its strong financial performance, Fonix proposed a final dividend of 5.7p per share, up 16.6% year-on-year.

Underlying cash balances grew 20.2% to £11.3m.

Operationally, Fonix said it saw growth across its key segments of payments and messaging, each expanding by over 16%.

During the year it facilitated transactions via Apple Pay, Google Pay, PayPal, and bank cards for the first time, broadening its service capabilities and enhancing its online payment portal offerings.

Additionally, Fonix managed Eurovision 2024 voting for the UK and Republic of Ireland, highlighting its capacity to handle high-profile events.

The business also invested in new product features, including live broadcaster voting and advanced campaign scheduling, which contributed to a robust pipeline of prospects going into the next financial year.

Its platform processed 23 million unique mobile user interactions, up from 19 million in the prior year, with 100% uptime, maintaining its reputation for reliability and scalability.

International markets contributed about 12% of gross profits, with Fonix optimistic about further expansion opportunities abroad.

The board said it was confident in the company's growth potential for the 2025 financial year, supported by high levels of recurring revenue, a strong commercial offering, and continued international expansion.

"We have made significant strides in our growth strategy this year, expanding our commercial offering and capitalising on a client-driven opportunity to build a substantial sales pipeline in a third geographical market, together underpinning our growth expectations for the year ahead," said chief executive officer Rob Weisz.

"In the next 12 months, we plan to further enhance our products, building on the strong progress achieved in the 2024 financial year.

"Our serviceable market is expanding significantly with new direct network connectivity in Portugal, and we will explore additional direct connectivity opportunities in other territories in 2025 as we determine the most effective routes to market."

Weisz said the company hoped to begin transacting in Portugal before the Christmas trading period.

"By achieving this and continuing to nurture growth from our existing clients, we believe we have a strong opportunity to further build on our outstanding record since IPO."

Fonix said it would publish its annual report on 25 October, with its annual general meeting scheduled for 19 November.

At 1135 BST, shares in Fonix were down 0.13% at 236.2p.

Reporting by Josh White for Sharecast.com.