Dear Shareholder
I am pleased to present the ISX Financial EU Plc (unaudited) results for Q3 2023 as part of our Quarterly Update process. Click hereThe company is pleased to advise that it continues to showcase remarkable growth, solid profitability, ongoing innovation, and an expanding market presence.Highlights:Sustained Growth: Our revenues increased 11% YoY. This growth demonstrates our ability to capture new opportunities and expand our presence in the market. Furthermore, our Net Assets have surged by 64% year-on-year (12% QoQ).Solid Profitability: We continue to maintain our profitability with an EBITDA margin of 24%. This solidifies our position as a thriving and financially robust fintech payments company.Investing in the Future: We remain dedicated to innovation, having invested approximately €2 million in Research and Development year-to-date. These investments are driving our vision. Innovation: Our commitment to innovation is evident in our latest product developments. flykk® has been significantly enhanced with a major new version to be launched in the coming days. Our flykk®linked Diners card has been certified for production and is (finally) in pre-rollout stage. We have also been granted further patents during this last quarter.Expanding Market Presence: We continue to secure new customers and explore exciting segments in the market. For example, we have extended our PaidBy® bank transfers offering to a major marketplace, such that it is accessible by over 30,000 UK retail merchants.2023 Guidance: We are well on track to reach our goal of achieving €30 million in revenue by the end of 2023 and maintain our EBITDA/profitability margin within 20-30%Next Steps towards IPO or Direct ListingThe Company will be seeking to reorganise its assets under a new holding company, ISX Plc, which will be the listed entity and issuer of securities. Shareholders will retain their holdings in direct proportion to their existing holdings. This allows the group to re-organise its operating companies and financial reporting lines on a geographic basis, consistent with our prudential supervisory and taxation reporting obligations. The “top hat” process of inserting a holding company above will be via a court supervised scheme of arrangement, and subject to a shareholder vote at general meeting. This process was described at the Annual General Meeting, with details here.The rationale behind the “tophat" process is explained within the AGM presentation, which also highlights that there is no dilutionary impact to shareholders.. A key rationale is our ability to structure the Cypriot public company in order to meet listing requirements and rules of our preferred securities exchanges.Unfortunately, the Company approached ASIC months ago with full details of the Court supervised “tophat” scheme, and approval under ASIC RG188 has been a slow and laborious process. The “tophat" meets the ASIC policy requirements of “…reconstructions involving no change to the underlying assets or business” and being “...restricted to changes in the form of the entity rather than the substance of its business.”, so we are confident of an eventual outcome with ASIC.Shareholders will need to vote on this process at an Extraordinary General Meeting, at which point the Board will be able to lay out its position and preferences for direct listing or initial public offering, and the three exchanges that we are in discussions with.Please also ensure that all your details are up to date with our share registry, Automic, so formal communications reach you. Selecting “electronic communications” ensures that post doesnt critical delay notifications, noting also that interim updates and news are available via the Company blog, Twitter and other social media. In the meantime, we are focussed on continuing to grow the businessYours faithfullyN. KarantzisManaging Director & CEOISX Financial EU PlcISX Financial EU Plc ("ISX Plc") Group operating subsidiaries include ISX Financial UK Ltd, ISX Financial EU PLC (CY), Probanx Solutions Ltd
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