GSTechnologies, LON:GST, the BVI-based fintech and blockchain payments company with operations in the UK, Lithuania, Singapore, and Australia, recently updated the market on its activities.
As previously reported, GST operates through three divisions: GS Money, a blockchain payments and financial services company based in the United Kingdom and Singapore; AngraFX, the group’s foreign exchange platform, and; GS20, a cryptoasset exchange and fiat onramp and offramp service provider. The company also has a cybersecurity consulting firm, Semnet, based in Singapore.
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The company said that it was making “significant progress on developing a borderless neobanking platform” through developing its own solutions and IP and through acquisitions. Management is very excited by the prospects of its Angra Global brand, which was formed in August 2023, with management saying that it had experienced substantial revenue growth in the six-months to end-March. Angra Global was founded following GST’s acquisition of Canadian Money Services Business (MSB) fintech, PAYPT.
Onboarding ‘significant’ numbers
Angra Global, which operates under the AngraFX and Angra Global brands, has been onboarding significant numbers of new clients and hopes to accelerate this growth by targeting more than 2,000 UK-based Small Payment Institutions (SPIs) to build its UK footprint on the back of rising demand for forex services from the SPI sector.
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The Angra brand is the first leg of GST’s stool given its focus of operations on FX dealing, cryptoasset trading, money transfer and authorisations for the issuance of debit cards and International Bank Account Numbers (IBANs). Angra, since plugging into the GST group, has leveraged on the other parts of the group to enhance its offering with new technology, including its multi-currency e-wallet allowing clients to hold up to six currencies on one digital platform.
Angra sits alongside GS20, which is targeted at high-net-worth individuals (HNWIs) and corporate clients, which again has seen a steady growth of onboarded new clients looking to transact with cryptoassets, and management are expecting a great deal from GS20 next year. The business unit formed a partnership with Lithuanian professional services firm, Noewe UAB, which will align GS fintech financial year-end reporting, as well as advise GST with regulatory compliance expectations.
Semnet became a bona fide part of the group in February (with GST acquiring 66.67% of the issued share capital of the company for USD1.8m in cash and new shares, comprising USD800,000 in cash and USD1m in shares. The remaining 33.3% of the company was retained by the spouse of GST’s CEO), which just before the acquisition went through, secured a USD36m contract to provide high-performance servers designed for AI applications. In the year to end-September 2022, the last pre-takeover accounts, Semnet had USD4.2m turnover and profit-before-tax of around USD200,000.
GSTechnologies continues to look for acquisitions
In April GST placed GBP1.25m of shares, about 6% of the company’s share capital, which was used to accelerate the implementation of the group’s GS Money strategy, and as a reserve to fund new acquisitions. In July GST agreed to buy Spanish fintech, Bonfirepay SL, which was bought to enhance Angra Global’s B2B-focused cross-border payments and currency exchange services in Europe. About a year ago, GST agreed to acquire Northern Ireland’s cross-border payment company, EasySend, but not a great deal has been heard on that transaction since, but GST’s management are still on the prowl for value-add bolt-ons.
The next big announcement expected from GST should be towards the end of December, when its interim results are due. GSTechnologies is clearly a company with ambitious growth plans. With a focus on innovation, strategic acquisitions, and leveraging emerging technologies like blockchain and AI, the company is well-positioned to capitalise on the growing fintech market. As it continues to expand its operations and enhance its product offerings, investors will be watching closely to see how the company delivers on its promises.
GST opened the week at 0.722p, up 3% from where it was this time last year. Over the year-to-date, GST shares are down 43.4%. However, it’s been a turbulent ride in 2024 for investors. On 16th November last year GST was trading at around 1.6p but by the end of August was down to 0.565p. The company’s shares have ranged between 0.55p and 2.1p over a 52-week period. The company has a market cap of GBP13.5m.
