Finseta cuts 2026 outlook amid macro headwinds; shares plunge 40%

Finseta PLC on Tuesday reported first-half results dampened by war in the Middle East, and said it now expects "full-year 2026 results below the Board's prior expectations."

Shares in Finseta were down 40% to 6.50 pence per share on Tuesday afternoon in London.

The London-based foreign exchange and payments solutions company said it expects revenue of about £5.4 million for the six months ended June 30, down 8.5% from £5.9 million the previous year.

While the company highlighted the continued success of its customer acquisition, average revenue per customer was lower "due to persistent macroeconomic headwinds" over the group's key markets, impacting customer demand and lengthening sales cycles, Finseta said.

Finseta said it expects to report a 243% increase in revenue in Dubai, which, while substantial, is still below previous expectations.

Expected adjusted earnings before interest, tax, depreciation and amortisation loss of about £1.0 million, swung from £300,000 Ebitda profit. This was

Cash and cash equivalents at June 30 were £2.1 million, up 40% from £1.5 million.

Looking ahead, the company said that due to the challenging macroeconomic environment and the withdrawal of a currency corridor by one of the Group's banking partners over the last two months, "the board is taking a more cautious view of the full year.

"The group now expects to report full year 2026 results below the board's prior expectations, with group revenues of approximately £11 million and second half 2026 revenues broadly at the same level as first half 2026.

"Consistent with first half 2026, full year 2026 results will include a greater proportion of revenue contributed by corporate accounts, resulting in a year-on-year increase in gross margin. The group has identified an alternative currency corridor provider which is expected to come on stream in the fourth quarter.

"The group remains committed to its strategic transition, though the pace of implementation has extended beyond initial forecasts. The group continues to invest in its strategy, whilst maintaining its cost discipline, with costs anticipated to be in line with management's previous expectations for full year 2026."

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