Findi (ASX:FND) reported revenue of $33.9 million for the six months ended September 30, 2024, an increase of 6.6% from $31.8 million in the prior period. Despite the revenue growth, the company reported a statutory net loss of $3.9 million, reversing the trend from the $1.1 million profit recorded in the prior corresponding period. Earnings per share (EPS) fell to a loss of 7.28 cents, compared to a profit of 3.01 cents in the prior period.
Adjusted for $1.6 million in strategic investments and $3.16 million in finance costs related to the convertible notes, Findi reported a normalized profit of $860,000. The company cited election-related restrictions in India as a temporary dampener on ATM transactions, which have since returned to historic levels.
The company specializes in transaction banking services, including ATM deployment and management, digital payments and financial services. Through its Indian subsidiary, Transaction Solutions International, Findi works with public and private sector banks.
Key initiatives include Findi’s $75.7 million acquisition of Tata Communications Payment Solutions Limited (TCPSL), which adds 4,600 ATMs and a white label platform, and the deployment of 638 ATMs for the Central Bank of ‘India. However, delays in the rollout of white-label ATMs with the transferred license, combined with a net reduction in cash reserves to $32.3 million from $46.1 million in March 2024, have raised concerns about the risks of execution and the sustainability of cash flows. Gross debt is $62.2 million.
Executive chairman Nicholas Smedley said: “We are on track to deliver long-term sustainable growth for shareholders.”
Findi reaffirmed its FY25 guidance of $80-90 million in revenue and $30-35 million in EBITDA, forecasting a stronger second half driven by the State Bank of India contract and the implementation of White-label ATM.
Findi shares are trading 15.48% lower at $6.55.