The foreign exchange services group warns of a full-year loss as Gulf turmoil and an over-built cost base squeeze margins.
Foreign exchange services provider Finseta (AIM: FIN) saw its shares slump 39.5% to 6.5p after warning that first-half revenues fell to £5.4m from £5.9m a year earlier, with the group blaming the ongoing conflict in the Middle East for the slide.
The fall came despite Middle East revenues actually rising during the period, as the wider region's economic disruption weighed on client activity while Finseta had already built out a cost base geared towards much higher income levels, leaving the business exposed when trading failed to match expectations.
Finseta's net cash position stood at just £400,000 at the end of June 2026, and management now expects second-half revenues to come in broadly similar to the first six months, pointing to a full-year loss of £2.6m as the London-listed firm grapples with a tougher economic backdrop across its markets.
The stock's slide was one of the sharpest among AIM fallers on the day, a session that also saw Sancus Lending (AIM: LEND) drop 19.2% after flagging a £14m write-down at its Channel Islands joint venture, even as floorcoverings distributor Likewise (AIM: LIKE) jumped 12.7% on news that rival Headlam had entered administration, underlining how idiosyncratic newsflow rather than a single sector theme was driving AIM's small-cap swings.
Investors will now watch whether Finseta can rein in the cost base it built for a higher-revenue environment without further damaging its Middle East franchise, with the size of the eventual full-year loss and any update on cash headroom likely to be the key markers of whether the group can stabilise before year-end.
This report is based on Finseta’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full markets calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Maxim Hopman on Unsplash.
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