Finseta-Interims-2024 annual financial report

FInseta review on how they are doing for the long term. Includes guidance on how to crack the market

1. PREMIUM PAYMENT SOLUTIONS
Interim Results 2024

2. Introduction

3. Presenters
James Hickman
CHIEF EXECUTIVE OFFICER
Judy Happe
CHIEF FINANCIAL OFFICER
Over 25 years in the Financial Services industry with
the last 20 years' experience within the FX and
payments industries. Most recently, James was Chief
Revenue Officer at Dublin-based fintech business,
Fire Financial Services Ltd. Previously, James spent
nearly five years as Chief Commercial Officer at AIM-
quoted Equals plc. Prior to that he was Managing
Director at a privately held card & payments
business, Caxton FX Ltd.
Judy has extensive experience of raising growth
capital and executing M&A strategies at digital
technology companies. She was CFO of digital
mental health provider Kooth plc. Previous to this, she
spent 7 years at cybersecurity business AVG
Technologies in financial and operational roles. She
co-led its $1.3bn sale to Avast plc. Judy is a qualified
Chartered Accountant.
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4. AboutFinseta
Solving currency and
payment challenges
for businesses and
individuals around the
world.
WHAT WE DO?
Proprietary
technology platform
Currency risk management,
payment and electronic
account services
Innovating through
partnerships and
expanding its payment
capabilities
Onboarding customers with
complex needs
Benefiting from local
payment rails and
lower transaction
costs
CURRENCIES
140+
COUNTRIES
CUSTOMERS CAN
SEND FUNDS TO
165+
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5. 2024 H1Highlights
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• Record revenue –40% y-o-y growth
• Substantial growth in profitand cashfrom operations
Excellent financial performance
Investment in sales team is
driving growth
Expansion of global payments
network
Canadian licence
• Increase in number of active clients and average
transaction value
• Expansion of introducernetwork
• Now able to pay out to over165 countries in140
currencies
• Agreement with Mastercard
• PLC and Regulated
• No negative impact
• IP ownership
• Regulatory approval received
• Country manager appointed
• Local banking relationships progressing
Rebrand completed

6. Our Strategy

7. OurStrategy
Expanding our Geographic
and Market footprint
Enhancing our
product capabilities
Future-proofing the
business
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Finseta
Platform

8. Progress against Strategy

9. Progress
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CANADA
REGULATORY
LICENCE
(2024) UAE
REGULATORY
LICENCE
(2024)
HONG KONG
REGULATORY
LICENCE
(2025)
Expanding our Geographic and Market footprint
▶Canadian licence
granted by FINTRAC
▶Dubai application in
process with the DFSA
▶Continued increase in
Sales team driving
active customer and
transaction value
growth
▶Appointment of Country
Head in Canada
▶Increased partnership
referral network
▶Commencement of
programme to expand
regulatory capabilities on a
global scale
Expansion of internal and
external sales capability
Regulatory ExpansionDelivering our existing
product to new markets

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Global eIDV
SCREENING
Progress
Enhancing our product capabilities
▶On track for H2 2024
launch
▶Mastercard agreement
signed
▶Vendor selection and
terms signed
▶Added three new
payments
counterparties and one
new banking partner
▶Finalising terms with a
key banking provider
▶Increased currency
capability from 58 to
over 140
▶Improved customer
onboarding process
leading to decreased
onboarding times
▶Implementation of A.I
real-time transaction
monitoring
Dynamic Risk
Based
ONBOARDING
TOOL
Expanding the Finseta
Payment Network
Card programme
launch 2024
Compliance System
Development

11. Progress
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Future-proofing the business
Brand
▶Completed renaming from
Cornerstone FS to Finseta
▶Supported brand
recognition through global
sponsorship deals with LET
and UTS
▶Key payment partnership
deals increasing profile
▶Trademarks and IP
Financial
▶Increased profit
▶Increased revenue
▶Increased margin
▶Strengthened balance
sheet and cash flow
generation
Platform
▶Continued development
and enhancements
▶Addition of counterparties
via API
▶Mass payments capability

12. 2024H1Financial Highlights

13. H1 24: Sustained delivery whilst investing for growth
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Revenue
£5.1m
+40%
(H1 2023: £3.6m)
ADJ. EBITDA
£0.8m
+337%
(H1 2023: £0.2m)
PBT
£0.6m
+2,349%
(H1 2023: £0.0m)
Gross Margin
65.7%
+470bps
(H1 2023: 61.0%)
Cash From Operating Activities
£0.8m
+587%
(H1 2023: £0.1m)
Net Cash Position
£0.6m
+249%
(31 Dec 2023: £0.2m)

14. Continued top line delivery, now 100% direct
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952
ACTIVE CUSTOMERS
+9%
AVERAGE TRADE SIZE
+29%YOY Growth
£'000 H1 24 H1 23 24/23
Revenue 5,060 3,602 40%
0.8
1.9
3.6
5.1
-
1.0
2.0
3.0
4.0
5.0
6.0
H1 21 H1 22 H1 23 H1 24
Revenue (£m)
▶Underlying revenue growth of 54%-
excluding white label in H1 2023
▶2-year revenue CAGR 63%

15. Focused investmentevident in cost base
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•Targeted investment remains key focus
•Staff cost growth reflects investments into direct
sales team, increased performance-related
bonuses and investment in card program
•Sales & marketing costs incurred to support
group re-branding
•Other includes increased travel due to
globalisation of operations, rent due to move to
new corporate offices and server costs
associated with development of expanded
product base
Adj. costs as % of revenue
49%
H1 2024 H1 2023
56%

16. Fuelling profitability growth
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£'000 H1 24 H1 23 24/23
Revenue 5,060 3,602 40%
Gross Profit 3,326 2,196 51%
Gross Margin 66% 61% 5%
Adjusted costs (2,495) (2,006) 24%
Adj. EBITDA 831 190 337%
Margin 16% 5% 11%
Adj. profit before tax569 23 2349%
(0.7)
(0.5)
0.2
0.8
(1.0)
(0.8)
(0.6)
(0.4)
(0.2)
0.0
0.2
0.4
0.6
0.8
1.0
H1 21 H1 22 H123 H1 24
Adjusted EBITDA (£m)
▶Sustained adjusted EBITDA growth

17. Strong cash flow conversion
CONFIDENTIAL | COPYRIGHT 202417YOY Growth
£'000 H1 2024 H1 2023 24/23
Profit before tax 569 23 2349%
Non-cash items 602 439 37%
Finance & investing items (83) (93) -11%
Working capital (307) (255) 20%
Operating cash flow 782 114 587%
Adj. EBITDA 831 190 337%
Cash conversion 94% 60%

18. Strengthening cash position
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£0.6m
Net cash position (less £2.2m
loan notes) of:
£2.8m
Period-end cash of:
0.3
0.7
0.8
2.3
2.8
0.0
0.5
1.0
1.5
2.0
2.5
3.0
H1 22 H2 22 H1 23 H2 23 H1 24
Closing Cash (£m)YOY Growth
£'000 H1 24 H1 23 24/23
Non-current asset additions(249) (215) 16%
Subsidiary disposal proceeds150 300 -50%
Deferred consideration (105) - n/a
Investing cash flow (204) 85 -339%
Financing cash flow (153) (66) 133%
Operating cash flow 782 114 587%
Net cash flow 425 134 218%

19. Summary

20. Summary
Significant growth in
all financial metrics
Expansion of
payments
capabilities and
introducer network
Rename completed
to Finseta
Agreement signed
with Mastercard
Received regulatory
licence to operate in
Canada
On track for significant growth for FY
2024, in line with the Board’s expectations
Strengthened foundations for long-term
sustainable growth
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21. Appendix

22. Prudent approach to adjusted measures
CONFIDENTIAL | COPYRIGHT 202422£'000 IFRS
Share based
compensation
Acquisition
related costs
Right of use
asset
Interest on
client balances
Total
adjustments
Adjusted
measure
EBITDA 911 169 (157) (93) (80) 831
Depreciation & amortisation (433) 62 145 206 (227)
Profit on disposal of subsidiary 150 (150) (150) 0
EBIT 628 (24) 604
Finance income and costs (59) 29 29 (30)
Profit before tax 569 5 574
Tax charge (118) 0 (118)
Profit after tax 451 5 456

23. Thank you
ANY QUESTIONS
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