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Exploit a fintech repeat buying opportunity

Simon Thompson: Payments company is rated on a forward PE ratio of 11 even though it delivers strong growth
Exploit a fintech repeat buying opportunityPublished on January 15, 2025
  • Underlying revenue up 26 per cent to £11.3mn
  • Cash profit up 18 per cent to £2mn
  • 2025 forward PE ratio of 11.8
  • Enterprise valuation to 2025 cash profit multiple of 6.4 times

Finseta (FIN:36.5p), a challenger brand in international payment solutions, has reported a robust pre-close trading update and maintained a positive trading outlook.

Buoyed by 17 per cent growth in the number of active customers to 1,059, full-year underlying revenue (excluding white label and licensing business) increased 26 per cent to £11.3mn and adjusted cash profit rose from £1.7mn to £2mn (£0.1mn better than forecast). Profitability is also heading in the right direction as the strategic switch from white labelling to higher margin direct sales helped drive up gross margin two percentage point to 65.5 per cent.

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