Shares in global payments firm Equals (EQLS:AIM) surged 7.3% higher on Monday to 65.3p, following the announcement of a positive third quarter update.

Strong momentum has been sustained in part, by healthy demand for the group’s ‘Equals Solution’ proposition, the new multicurrency product aimed at larger businesses.

The record start to the third quarter of 2021, highlighted at the interim results on 14th September, continued with revenues generated of £11.7 million.

This marks an acceleration in Group trading and represents a 33% run-rate increase on the prior quarter (Q2-2021: £8.8 million); a 62% increase on the prior year comparative period (Q3-2020 £7.2 million); and a 46% increase on the pre-Covid comparative period (Q3-2019. £8.0 million).

STRONG DEMAND FOR EQUALS SOLUTION

The UK payments sector is becoming increasingly crowded with small, specialist operators, but Equals stands out for the breadth of its proposition both for businesses and consumers, including real-time settlement accounts with the Bank of England thanks to its membership of the UK Faster Payments Scheme.

A key factor behind this outperformance is Equals Solutions. This is a single platform, single IBAN multi-currency account targeted at larger corporates.

Although the platform was only launched in June it has attracted new customers, and has secured a strong pipeline of orders.

FUTURE OPTIMISM

There are several reasons to be optimistic about the future. First, the business to business revenue continues to grow as the group’s investment in technology in previous years is now bearing fruit.

Second, the easing of travel restrictions will boost the consumer business. At the recent interim results Broker Canaccord Genuity upgraded their earnings per share forecasts by 8% and their share price target from 57p to 98p. Today’s positive update is likely to encourage further earnings upgrades.

READ MORE ABOUT EQUALS GROUP HERE

Find out how to deal online from £1.50 in a SIPP, ISA or Dealing account. AJ Bell logo

Issue Date: 11 Oct 2021