Fonix (FNX) H2 2024 earnings summary

Executive summary

• Trading performance exceeded initial expectations for the year ended 30 June 2024, with strong growth in international markets and key segments of payments and messaging continuing to expand.

• Dividend increased in line with a progressive policy, reflecting sustainable, long-term profitability and ongoing product investment.

• Growth strategy focused on international expansion, product innovation, and a robust pipeline of commercial opportunities.

Financial highlights

• Total Payment Value (TPV) reached £303m, up 13% year-over-year; revenue grew 17% to £76.1m.

• Gross profit increased 19% to £17.9m; adjusted EBITDA rose 18% to £13.7m; adjusted PBT up 27% to £14.0m.

• Net profit grew 21% to £10.6m; operating profit up 22% to £12.8m.

• Proposed dividend per share of 8.30p, up from 7.25p, representing 77% of adjusted EPS.

• Underlying cash at period end was £11.3m, up 20% year-over-year; actual cash £26.5m, up 28%.

Outlook and guidance

• Continued focus on growing existing accounts, winning new business, and investing in product and international expansion.

• Imminent launch of interactive services in Portugal and a strong pipeline of commercial opportunities across all sectors.