Findi (ASX:FND) has reported $33.9m in revenue for the half year ended 30 September 2024, a 6.6% increase from $31.8m in the prior period. Despite the revenue growth, the company posted a statutory net loss of $3.9m, reversing from a $1.1m profit in the previous 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 $1.6m in strategic investments and $3.16m in finance costs related to convertible debentures, Findi recorded a normalised profit of $860,000. The company cited India’s election-related restrictions as a temporary drag on ATM transactions, which have since returned to historical norms.
The company specialises in transaction banking services, including ATM deployment and management, digital payments and financial services. Through its Indian subsidiary, Transaction Solutions International, Findi partners with public and private sector banks.
Key initiatives include Findi’s $75.7m acquisition of Tata Communications Payment Solutions Limited (TCPSL), which adds 4,600 ATMs and a white-label platform, and a 638-ATM rollout for the Central Bank of India. However, delays in deploying white-label ATMs under the transferred licence, combined with a net reduction in cash reserves to $32.3m from $46.1m in March 2024, have raised concerns about execution risks and cash flow sustainability. Gross debt is at $62.2m.
Executive Chairman Nicholas Smedley stated: “We are on track to deliver long-term sustainable growth for shareholders.”
Findi reaffirmed its FY25 guidance of $80m-$90m in revenue and $30m-$35m in EBITDA, expecting a stronger second half driven by the State Bank of India contract and white-label ATM deployments.
Shares in Findi are trading 15.48% lower at $6.55.