- Wise sees 2026 pre-tax margin at top end
- Underlying income up 16%
- Expanded share purchase programme
Global technology company Wise (WISE) jumped as much as 5% after the money transfer specialist, formerly known as TransferWise, said it expects to deliver an underlying pre-tax margin at the top end of the range in 2026.
The shares have gained 8% over the last year and are up by around a fifth since listing on the stock exchange in 2021 at 800p. The IPO (initial public offering) was unusual in that it was a direct listing with no funds raised.
‘In contrast to a traditional IPO, a direct listing was the fairer, cheaper and more transparent way for us to broaden our ownership,’ the company said at the time of the listing.
To preserve the stability and continuity of strategic direction, the company opted for a dual class share structure.
CONTINUED DOUBLE DIGIT GROWTH
Ahead of a Capital Market Day for analysts and investors, the company provided preliminary results for the year to the end of March.
Active customers increased 21% to 15.5 million, generating £145 billion of cross border payment volumes, equating to 22% year-on-year growth. Underlying income increased 16% to £1.36 billion, equivalent to a margin of 20%.
At today’s meeting (3 April) Wise said it will provide more detail on its ‘powerful financial model’ which creates capacity for disciplined and sustainable growth investments.
In the medium term the company has a target to achieve an underlying pre-tax profit margin in the range of 13% to 16% and deliver ‘strong’ underlying income growth between 15% and 20% a year.
Over the next year Wise expects to deliver a pre-tax margin around the top end of the target range.
EXPANSION OF SHARE PURCHASES
The company also announced its intention to expand the share purchase programme into the Employee Benefit Trust to ensure there is no shareholder dilution from historical stock-based compensation.
Historical grants total circa 25 million shares, equivalent to 2.5% of issued capital.
The board said it has been extensively consulting with shareholders on the optimal listing arrangements for the company and expects the review to conclude in the coming weeks.
