(Alliance News) - Equals Group PLC said Wednesday strong trading has continued through December, and it now expects 2020 revenue ahead of market expectations.
Shares in the London-based payments and e-banking firm were 21% higher in London on Wednesday at 32.60 pence each.
Equals said it expects report 2020 revenue of GBP29.0 million, which is GBP1.0 million over market expectations, but down from GBP30.9 million seen in 2019.
Chief Executive Ian Strafford said: "With the considerable headwinds posed in 2020 by Brexit and the ongoing Covid-19 pandemic, for us to deliver revenues only 6% lower than the prior year and materially ahead of expectations, is I believe an excellent achievement of which I am extremely proud."
Adjusted earnings before interest, taxes, depreciation and amortization is expected to be about GBP1.1 million, which it noted its "comfortably" ahead of the current market expectations of GBP550,000.
Equals said the strong trading reflects the performance from its B2B products.
"The group's original focus was in Travel Money. That is no longer the case. Despite the effects of the the Covid-19 pandemic, strong revenues from both Payments and Banking Services underlies this strategic shift, and the group is increasingly being seen as the payment partner of choice for SMEs allowing them to utilise a variety of payment options to boost their international trade," the company said.
At the beginning of December, Equals said, in the 11 months to November 30, revenue was down 4.3% to GBP26.1 million from GBP27.2 million a year earlier.
Revenue per day fell at the same rate at GBP112,000 from GBP117,000 a year earlier, but improved from GBP110,000 in the first half of 2020.
Strafford continued: "The hard work and motivation of our dedicated team of staff, from engineers delivering product, customer facing staff upselling and cross-selling, middle-office staff providing superior customer service, and back-office staff tightly controlling risks, has meant that we have ended the year well and in robust shape, leaving us well positioned for the post Brexit future."
By Paul McGowan; paulmcgowan@alliancenews.com
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Equals Gp (EQLS)