(Alliance News) - Equals Group PLC on Wednesday said that its revenue in the first half of 2023 climbed as its distribution channels expanded.
It also said it has completed its acquisition of Oonex SA, as the National Bank of Belgium confirmed that it has no obligations to the transaction.
London-based payments firm for small and medium enterprises said revenue in the first six months of 2023 grew 43% to EUR45.0 million from EUR31.4 million a year prior. Notably, revenue from its Solutions unit more than doubled to EUR13.6 million from EUR6.3 million.
Gross profit margins are now over 50% compared to 47%.
Equals also issued a separate trading statement regarding its acquisition of Oonex.
In March, Equals entered into an agreement to buy Oonex, a global payments services provider to the fintech industry, for GBP4.1 million.
Equals said the acquisition will allow it to bring its payments, cards and multi-currency account products to a new suite of customers across Europe.
"The ability of Oonex to issue local IBANs within the Eurozone will significantly expand the addressable market for the Group's platform and products and fits with Equals' strategy to provide the best B2B platform for worldwide money movement," the company added.
As announced in March, the acquisition consideration will be satisfied through the issue of 3.9 million 1 pence shares in Equals. Further tranches of 61,706 and up to 1.0 million shares will be issued over the next six months.
Equals added that the acquisition is expected to be earnings accretive for the company in the medium term.
Chief Executive Ian Strafford-Taylor said: "We are delighted that the NBB has confirmed that it had no objections to the change of control for Oonex, so we can now commence growing the business in Brussels as well as integrating it into the Equals technology platform. We see Oonex as a tremendous opportunity for the group as it allows us to distribute our market leading platform, products, and capabilities to new customers across the Eurozone and we look forward to updating shareholders on its progress in the coming months."
Looking ahead, Equals Group said trading remains in line with expectations for 2023, with adjusted earnings before interest, tax, depreciation and amortisation margins anticipated to be approximately 20% for the whole of 2023, even after the acquisition of Oonex.
Equals will release its half-year results on September 12.
Shares in Equals Group were up 2.4% to 98.32 pence each in London on Wednesday afternoon.
By Sophie Rose, Alliance News reporter
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Equals Gp (EQLS)