Moneycorp: Full Year 2022 and Q1 2023 Trading Update

Global cross-border payments business delivers another year of strong growth

Further demonstration of Moneycorp's track record as investment in the platform delivers returns.

LONDON, June 1, 2023 /PRNewswire/ -- Moneycorp, one of the world's leading cross-border payments businesses, today publishes its results for the full year 2022 and provides a trading update for the three months ended 31 March 2023.

"This has been a record year for Moneycorp across a number of metrics, with a strong performance from all business segments, transacting over £70 billion of cross-border flow on behalf of our clients. 
The Group's strong and established presence in some of the world's biggest and fastest growing areas of cross-border payments, combined with the scalability of our platform and best-in-class proprietary technology, gives us significant advantage in a rapidly expanding global market." Mark Horgan, Chief Executive.

Full Year 2022 Financial Highlights

• Trading volumes grew by 91% to £73.3bn, with strong performance from new and existing clients across each business segment.
• Revenue growth of 58% to £220.1m, driven by substantial growth in Payments – Financial Institutions. The Group reported 113% revenue retention from our existing Corporate client base.
• The Group reported significant EBITDA growth, up 85% year on year. The Group EBITDA margin now stands at 32%, as a result of increased trading revenues, combined with improved efficiency of our payment networks, ongoing prudent cost management, and investment in our people and core technology platform. With over 50% of Group revenue being USD denominated, the USD/GBP rate was a tailwind in our financial performance.
• Moneycorp remains highly cash generative, with 75% of EBITDA converted to free cash.

Full Year 2022 Operational Highlights

• Continued investment in systems and controls to maintain robust operations and regulatory excellence. 'Soteria', a new in-house system that provides real time monitoring of all payment transactions that pass through Moneycorp's platform, was launched in June 2022. Furthermore, we are constantly investing in and enhancing our industry-leading compliance processes as we consider this to be a key differentiator for Moneycorp.
• The Group continues to build on its European ambitions with the launch of Moneycorp France in September 2022.
• Moneycorp was recently named in the Top 100 cross-border payment companies by FXC Intelligence for the fifth year running.

** Q1 2022 results have been restated following the Group adoption of IFRS for management accounting purposes during the year

Q1 2023 Financial Highlights

• Trading volumes grew by 75% to £20.0bn, with strong performances, especially in Payments – FI, despite challenging market conditions.
• Revenue of £59.2m represents a year-on-year growth of 22%. Underlying increase in trading revenue was in line with volume increases noted above and reflected our conservative risk stance in a challenging macro-economic backdrop.  
• The Group reported proportionate EBITDA growth, up 23% year-on-year and has demonstrated strong overall growth throughout the quarter.
• Group EBITDA margin for the quarter was 32%, consistent with that achieved in 2022.

Outlook

Whilst the economic outlook remains uncertain, we are confident for the year ahead as Moneycorp expands its reach in its core markets. Moneycorp's strong and resilient business model and extensive regulatory credentials, underpinned by over 40 years experience in the international currency and payments market, continues to be a differentiator for our clients. Our people, technology and platform will continue to perform well, driving strong financial results, meeting strategic milestones and complying with regulatory expectations.

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