Moneycorp: Full year 2021 and Q1 2022 Trading Update

UK headquartered payments fintech, posts strong growth at home and abroad

Strong results reflect Moneycorp's unique ability to deliver specialist, international currency payments

LONDON, May 24, 2022 /PRNewswire/ -- Moneycorp, one of the world's leading payments fintechs, today publishes its results for the full year 2021 and a trading update for the three months ended 31^st March 2022.

"We are delighted to announce a very strong set of 2021 results. The investments we have made to refocus the business as an international, digitally enabled payments provider, have resulted in significant growth and market share gains, with 84% of income now derived from B2B payments and banking services.

"We remain focused on our strategy to grow our position as a world-leading digital payments platform by capitalising on the strength of our technology, high-quality service, transparent pricing and cost-efficient operating model. Our purpose has always been to reduce friction for our clients, providing them with high quality, competitively priced products that help them navigate complex currency markets.

"The new financial year has started well, with Q1 results substantially ahead year-on-year across all business units. Whilst we remain alert to geopolitical and macro-economic conditions, the momentum we have demonstrated gives us confidence in the outlook for Moneycorp in 2022 and beyond."

Mark Horgan, Chief Executive

Group FY financial metrics*

* Continuing operations only, excluding retail
** Trading volumes represents flow measured as single leg transaction volume

Full year 2021 highlights

• Significant growth in EBITDA, excluding retail, up 38% to £36.74m, with the most significant EBITDA growth derived from Financial Institutions Group (FIG) operations in EMEA (up 77%) and International Payment Services in North America (up 35%).
• The Group continues to digitalise its client solutions, with approximately 61% of international payment transactions completed via either the Group's online payments platform or mobile app. During the year, the Group completed a significant data centre migration, now employing Microsoft Azure, to improve scalability and security.
• Following the strategic decision taken in 2020 to exit retail operations, the Group has now closed all bureau de change operations with the closure of the last remaining retail branch at Gatwick Airport in April 2022.

Group Q1 2022 financial metrics*

* Continuing operations only, excluding retail
** Trading volumes represents flow measured as single leg transaction volume

Q1 2022 highlights

• Strong quarterly result, with momentum demonstrated in 2021 carrying into 2022. Q1 Group EBITDA up 70% year-on-year to £14.84m reflecting client demand for specialist international payment services at a time of significant currency volatility and supply chain disruption.
• An improving year-on-year EBITDA margin of 31% as a result of an increase in trading income, prudent cost management with continued investment in the Group's core capabilities, technology and support function.
• Strong performance across all business areas, with significant market share gains supported by on-going investment in product innovation and proposition development to provide a best-in-class offer to clients.
• 2.9k new clients onboarded in the quarter 
• 84% of income now derived from B2B clients, with 65% from international revenue streams
• Revenue repeat rate of 100% of International Payments – Corporate clients in Q1 2021 trading with us in 2022
• 83% of payments to International Payment Services clients went via straight-through processing

• Increased volumes in international payments driven by growth in both new and established underlying business, particularly in North America, the UK and EU. The significant increase in volume has outpaced deal count, leading to a 25% increase in average transaction values.
• The Group continues to build its banking capabilities through Moneycorp Bank, offering a one-stop international payments solution for clients trading foreign exchange, holding cash on deposit or spending on prepaid cards, and is underpinned by a multi-currency single IBAN account. The contribution of Moneycorp Banco de Cambio has also increased as a result of strong spot transaction volumes and increasing market share in Brazil, albeit from a small base, with strong year-on-year growth in this market.
• The Group's FIG division, which utilises Moneycorp Bank's membership of the Federal Reserve Bank of New York's (FRBNY's) Foreign Bank International Cash Services (FBICS) programme, continues to see strong demand for US dollars, amongst other low-volatility currencies, as investors and market participants reduce their risk appetite in response to global geopolitical tensions.
• The Board has reviewed all clients and transactions and can confirm full compliance with all applicable international sanctions with regards to the war in Ukraine. The Group is no longer offering trades for currency pairs with Russian Ruble (RUB) or Ukrainian Hryvnia (UAH) and there are no remaining exposures to these currencies. All payments and transactions to any parties on sanction lists, in any currency, have been suspended indefinitely.

Outlook

Moneycorp continues to perform well against its key metrics, with revenue and EBITDA growth underpinned by its strong and resilient business model. We continue to see significant increase in demand from SME clients and financial institutions that require a trusted, scale partner to provide sophisticated currency solutions for their businesses around the world. Notwithstanding the uncertainty caused by the war in Ukraine and macro-economic headwinds, the Group expects growth to continue for the remainder of the year as it further enhances its existing offer to clients and expands into new products and markets.

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About Moneycorp:

Moneycorp is one of the world's leading payments fintechs, recognized for its personalized service, smart technology, regulatory excellence, and its all-in-one payments ecosystem, that helps clients navigate the complex global payments market.

Moneycorp operates in the United Kingdom, North America, Europe, Brazil, Hong Kong, and UAE offering a full suite of payment solutions in over 120 currencies. Its payment experts provide the unique know-how and tools necessary to create customized client solutions.

Moneycorp has a relentless focus on security through its sophisticated financial crime monitoring systems, bank-grade compliance, and proper segregation of client funds, and is committed to complying with all applicable laws and regulatory standards across the world.

In November 2019, Moneycorp became the first of only two non-U.S. bank members of the Federal Reserve Bank of New York's (FRBNY's) FBICS programme, providing Moneycorp direct access to Federal Reserve U.S. dollar currency services. It holds two banking licenses, Moneycorp Bank (Gibraltar) and Moneycorp Banco de Cambio (Brazil), as well as payments licenses in the UK, EU, Brazil and 48 states across the US. 

Visit www.moneycorp.com.