Let’s cut straight to the chase: Equals Group just dropped a final results bombshell that’s equal parts growth story, farewell letter, and victory lap. The payments specialist – a long-time darling of the SME-focused fintech crowd – is bowing out of public markets with a bang. Here’s what you need to know.
The Headline Acts: Growth Meets Goodbye
Forget subtlety – Equals came to party in FY-2024:
- 🚀 £18.2bn in transaction flows (+47% YoY)
- 💰 £131.7m revenue (+38%)
- 📈 £28.3m Adjusted EBITDA (+37%)
- 💸 £29.2m cash sitting pretty on the balance sheet
But the real showstopper? A £283m cash acquisition by Bidco at 140p per share (135p + 5p special dividend). Shareholders get a 35% premium to the 104p pre-announcement price. Not bad for a company that floated at 50p in 2014.
Why Now? The Board’s Poker Face
CEO Ian Strafford-Taylor didn’t sugarcoat it: “The payments arms race requires deep pockets.” Translation? Staying public while competing with banking behemoths and VC-funded fintechs became a mug’s game.
The numbers tell their own story:
- 💻 £6.5m capitalised tech spend (up 12% YoY)
- 👥 400 headcount (+33 since 2023)
- 🛡️ Compliance costs up 60% to £2.4m
This isn’t weakness – it’s realism. The board played their hand: take private capital now rather than face endless dilution.
Buried Treasure: Where the Real Value Lies
Look past the acquisition fireworks, and three gems shine:
1. The Solutions Juggernaut
Equals’ enterprise platform saw 79% transaction growth, now contributing 43% of group revenue. This isn’t your grandma’s FX firm – we’re talking API-driven, white-label solutions for corporates.
2. Interest Income Bonanza
Customer balances ballooned to £625m by year-end. Even with rate cuts, interest income doubled to £21.9m. That’s pure margin gravy.
3. Compliance as Competitive Moat
While rivals skimp, Equals went hard on AML:
- 15% of staff in compliance roles
- ISO 27001 certification maintained
- Monthly Security Council oversight
In a sector where regulators play whack-a-mole, this is institutional gold.
The Farewell Tour: What Happens Next
- 📅 10 April 2025: Court sanction hearing
- ⏹️ 14 April: Trading suspension
- 💷 28 April: Special dividend payment
CEO Strafford-Taylor’s sign-off says it all: “These results are likely to be the last as a public company.” There’s poetry here – Equals exits as it operated, delivering growth while staring down market realities.
Final Take: A Textbook “Good Exit”
At 15.5p cash per share and a 10.41p adjusted EPS, the 140p exit multiple (13.4x EBITDA) feels fair, not frothy. For long-term holders? A 180% return since IPO. For Bidco? A cash-generative platform primed for European expansion.
As the curtain falls on Equals’ AIM journey, it leaves a playbook for fintechs: build compliance muscle, pivot upmarket early, and know when to cash chips. The City will miss this one.
Want the full post-mortem? The 2024 annual report drops at midday today on their website. Bring coffee – it’s 85 pages of fintech nostalgia.
