(Alliance News) - Equals Group PLC said Wednesday that turnover in the first half was 18% higher year on year, in line with management expectations.
Equals, formerly FairFX, generated turnover of GBP1.3 billion in the six months to June 30 compared to GBP1.1 billion the year before.
The e-banking and payments company describes turnover as gross value of currency transactions sold plus gross value of deposits into bank accounts.
Equals said its overall revenue margins were "slightly improved" in the half on the positive effects of "supply change rationalisation" more than offsetting the company seeing its strongest growth coming from lower-margin products.
"The performance of Equals during the first half of 2019 clearly demonstrates the success of the group's strategy and its diversified and evolving business model. The wider regulatory permissions we now have both in the UK and the US combined with the depth of our connectivity to the payment networks will enable us to continue our growth in 2019 and beyond," said Chief Executive Ian Strafford-Taylor.
Equals said its international payments turnover increased 14% year on year to GBP636.3 million, reflecting "continued success" of the cross-selling within the group.
The company's travel money turnover - which includes retail cards and travel cards - slipped 8.9% to GBP158 million. Equals attributed this to cancelling "some low margin" travel cash affiliate partnerships, as such, the company expects "minimal" damage to revenue.
Equals banking turnover jumped 37% to GBP358.6 million. The company attributed the sharp rise to "significant" growth in its business banking and improved customer experience platforms.
"This turnover growth is expected to continue as the investment in the banking platform yields further benefits through improved payment functionality including direct Faster Payments access, enhanced customer experience and new products including lending via our credit broker licence," the company added.
Equals also noted it has entered into a contract with US lender Metropolitan Commercial Bank.
"Utilising MCB's US regulatory status means Equals now has US domestic clearance accounts and can service both retail and corporate clients for international payments," the company explained.
Equals added: "The strong first half combined with the new product pipeline and successful introduction of the Equals brand gives the board confidence that the company will achieve full year market expectations."
Shares in Equals were 0.9% higher in London on Wednesday at 126.10 pence each.
Equals Gp (EQLS)