Calamatta Cuschieri Moneybase plc, Malta’s “first neobank” has recorded a 79 per cent increase in profit before tax in 2024 up to €4.5 million, according to its financial statements.  

The group registered an EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) of €6.2 million for the year 2024, representing a 50 per cent increase compared to the previous year, with Profit before Tax (PBT) of €4.5 million and a Profit after Tax from continued operations of €3.7 million. 

“This impressive growth was driven by strong revenue performance across all core business lines, effective cost containment measures, and the successful restructuring and streamlining of our corporate structure,” the report read.

As a result, Calamatta Cuschieri Moneybase plc achieved an adjusted Profit Before Tax of €4.5 million, marking an increase of €2 million or 79 per cent over the previous year’s result. 

“2024 has been a landmark year for Calamatta Cuschieri Moneybase Plc. As we forge ahead, we remain committed to our core values of integrity, innovation, and excellence,” Charles Borg, Chairman of Calamatta Cuschieri Moneybase plc said.

“2024 exceeded our most optimistic projections, with outperformance across all revenue streams and a strong continuation of the positive momentum from previous years. We achieved 23 per cent year-on-year revenue growth, driven by the successful launch of new products as well as significantly expanding our client base,” co-CEOs Nick Calamatta and Alan Cuschieri said. 

This robust financial performance, the report continued, underscores the effectiveness of their strategic initiatives and operational efficiencies. A key element of their strategy has been to optimise their balance sheet, ensuring they are well prepared for future challenges and opportunities. 

Through a prudent dividend policy, they have gradually increased their net assets, which at the end of 2024 stood at €15.1 million. 

On the debt management front, the group recently announced the partial redemption of their bonds maturing 9 May 2026, unless the board decides to redeem earlier. After the final redemption, it is anticipated that the company will have no long-term liabilities. Cash flow from operating activities reached a record of €5 million  compared to a €1.3 million in 2023. Excess cash generated from operations has been utilised and invested in short term highly liquid investments.

This resulted in net cash used during the year of €0.8 million after accounting for dividends and financing. As a result, their Net Interest-Bearing Debt to Adjusted EBITDA ratio decreased from 0.97x to 0.62x. Their net assets increased by 11.8 per cent to €15.1 million , reflecting their “continuous commitment to financial stability and sustainable growth.”

The directors have also prepared forecasts for 2025 based on several key assumptions.

Annual revenue has been projected using 2024 trends as a baseline, with conservative increases applied to certain revenue streams. Employee costs, including wages and salaries, have been estimated using 2024 figures as a starting point, adjusted for planned staff increases in line with the group’s growth strategy.

Other administrative expenses, such as marketing, utilities, professional fees, and general overheads, are based on historical trends and existing agreements, with an assumed inflation rate of 5 per cent factored into the projections. Finance costs include bond interest payable at a rate of 4.25 per cent, lease-related expenses under IFRS 16, and interest on bank facilities. Income tax comprises current tax, calculated at 3 per cent of chargeable income, and deferred tax, accounted for using the balance sheet liability method to reflect temporary differences between forecasted asset/liability values and their tax bases.  

Intangible assets, property, plant, and equipment have been forecasted using 2024 net book values, adjusted for projected 2025 depreciation and amortisation.

Depreciation is calculated on a straight-line basis, with varying rates depending on the asset type: freehold buildings at one per cent annually, premises improvements at 10 per cent, furniture and equipment between 10 per cent and 33 per cent, and motor vehicles at 20 per cent. Intangible assets with finite useful lives are amortised over their expected lifespan. The fair value through profit and loss investments portfolio has been projected based on its 2024 valuation, with additional contributions assumed. Working capital, which includes trade receivables, inventory, and trade payables, has been estimated using historical trends. Finally, projected borrowings account for the remaining €3.81 million bond (net of deferred issue costs) and a planned €1 million partial redemption in Q2 2025. These assumptions collectively form the basis for the group’s financial forecasts.