(Alliance News) - Equals Group PLC said Monday it expects a sharp rise in 2019 revenue, with adjusted earnings expected to follow.
Shares in the payment services provider were down 12% in London on Monday at 68.01 pence each.
Turnover is expected at GBP2.91 billion in 2019, compared to GBP2.36 billion in 2018.
Equals noted its revenue in the second half "comfortably exceeded" the first half, which Equals said reflects the company's underlying growth.
Adjusted earnings before interest, tax, depreciation and amortization for 2019 is expected 30% higher year-on-year.
"These results have been achieved against a backdrop of challenging market conditions, caused by political and economic uncertainties which resulted in record-low currency volatilities," Equals said.
Equals said its Corporate and business-to-business customers generated 52% of revenue in 2019, compared to 37% in 2018. This is due to a new strategy, where the company is focussing on "more profitable relationships with greater longevity", compared to retail customers.
"This shift towards B2B has been driven by investments into the group, providing Equals with substantial product advantages over its competitors," the company added.
This increased investment, Equals said, will allow the company to process increasing volumes in 2020.
Equals said the acquisitions it completed during 2019 have performed in line with management expectations, and are now fully integrated. Equals said it also identified further cost savings of about GBP1 million from "efficiency gains", which are expected to be realised in 2020.
"A more encouraging political and economic backdrop combined with a strong pipeline of further product enhancement reinforces the group's positive outlook for 2020, and trading for January to date has been encouraging," Equals said.
By Paul McGowan; paulmcgowan@alliancenews.com
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Equals Gp (EQLS)