Calamatta Cuschieri Moneybase plc recorded €2.5 million in pre-tax profit during 2023, a 158 per cent increase from the figure in 2022 (€971,000), in what has been described as a “record year” for the group.
The results were announced in the group’s Annual Report and audited consolidated financial statements for the financial year ended 31st December 2023 on Tuesday.
Calamatta Cuschieri Moneybase, previously CC Finance Group plc, holds various investments through subsidiary companies, operating in investment services, capital markets, online trading, wealth and fund management, as well as fund administration. The group launched Moneybase, a mobile payment app, dubbed Malta’s first neobank, in 2022.
Over the past few months, the group has undergone a restructuring process that also saw the acquisition of all the shareholding in its subsidiary Moneybase Holding Limited. In the Annual Report, the company clarified that the results include adjusted consolidated key performance indicators (KPIs) that reflect the effect of the restructuring.
During 2023, the group registered record results, with revenue rising from €12.6 million in 2022 to a new high of €14.6 million. This represents a 9.9 per cent increase from the previous record revenue level, achieved back in 2021 (€13.3 million).
The increase in revenue was largely a result of trading commissions increasing by 13 per cent to €7.6 million. Given the uncertainty surrounding the interest rate trajectory, there was noteworthy market volatility, primarily within the equity space. Despite this, the prolonged period of higher interest rates led to a number of opportunities within interest-bearing securities, especially in the fixed income market. The group was also very active in treasury management, which generated revenue of €1.6 million during 2023.
On the other hand, administration fees also rose by 11 per cent, while investment management fees increased slightly from 2022 by two per cent.
Revenue from capital markets also increased from €553,000 in 2022 to €600,000 in 2023, representing a rise of 8.4 per cent. This comes as the group has strived to continue solidifying its position as a leading entity in the capital markets industry.
Despite a challenging market, income from fund administration and corporate services still increased by 10 per cent, amounting to a total of €2.9 million in 2023.
As a result, the group’s EBITDA for 2023 came in at €4.1 million, 138 per cent higher than that of 2022 (€1.7 million).
Calamatta Cuschieri Moneybase’s total assets as at the end of 2023 totalled €45.5 million, a growth of 45.3 per cent from the previous year (2022: €31.3 million). During 2023, Calamatta Cuschieri Investment Services Limited, one of the group’s subsidiaries, disposed of an investment property held for sale for €3.2 million, with this transaction considerably increasing the group’s liquidity and reduced debt.
During 2023, an interim net dividend of €400,000 was distributed to shareholders, and, in February 2024, another €400,000 interim net dividend was given to shareholders.
Reflecting on the financial performance, Chairman Charles Borg remarked that 2023 was a “challenging” financial year, with a number of international events affecting global capital markets.
“As independent financial advisors, our business remains very much correlated to the volatility of the global financial markets. Geopolitical uncertainty and subdued international trading persisted into the third quarter of the year, whilst improved investor sentiment had a positive effect on stock prices and trading in the last quarter of the year,” he shared.
Mr Borg added that the group’s digital platform has increased in usage over the years, and he affirmed that the Board of Directors believes it will be one of the group’s “main revenue generators in the coming years.”
He remarked that the financial performance was also the result of the hard work and dedication of Calamatta Cuschieri Moneybase’s employees, with management also being effective in implementing “strict budgeting, cost rationalisation, daily revenue reporting, and KPI monitoring.”
Mr Borg also explained that it is crucial to “build a strong governance framework in order to be able to continue to grow sustainably,” especially given the ever-changing regulatory environment.
Looking ahead, he said that the group remains optimistic about its prospects in 2024 and beyond.
From their part, Co-CEOs Nick Calamatta and Alan Cuschieri remarked that 2023 was the group’s “most successful year in its 52-year history.”
“From a financial point of view, we have managed to surpass all financial measures set out in the beginning of the year,” they affirmed, doing so despite a backdrop of a mixed trading environment, filled with geopolitical tensions and a high interest rate market.
“Despite 2023 being a year of uncertainty on the most part, the market rally experienced in the last two months of the year catapulted markets to impressive end-of-year headline figures,” they said.
The pair remarked that Calamatta Cuschieri Moneybase will continue to consolidate its core businesses and has also set “ambitious targets” for 2024. They shared that the group has had a positive start to 2024, with the first quarter seeing it build on the momentum of product developments and be ahead of its internal budget.
“Our teams are focused on enhancing our digital platform, improving the client experience of both distribution channels and ensuring that our client reach continues to grow,” they said.
Both the Co-CEOs and the Chairman thanked the group’s stakeholders, including clients, employees, and partners, for their continued trust and business.
Main Image:Calamatta Cuschieri Moneybase / Rene Rossignaud
