Late Revolut outcomes present it misplaced £25m

Revolut swung to a loss final yr because it did not reveal when it might safe a banking licence.

In its delayed accounts for 2022 printed yesterday, the monetary app enterprise posted a pre-tax loss for the yr of £25.4million, down from a £39.8million revenue in 2021.

The group’s backside line was dented by rising prices, which surged to £667m from £380million in 2021 as its workforce greater than doubled.

It additionally took a £17m hit within the first quarter of the yr after a funds system flaw allowed criminals to siphon tens of millions from its company accounts.

The accounts additionally revealed that Revolut’s highest-paid director, regarded as chief government Nik Storonsky, noticed pay leap to £17.8million from £10.3million in 2021. Most of this consisted of share-based funds.

The losses got here regardless of revenues on the group leaping 45 per cent to £923million because it added over 9.8million new prospects to its books. The agency additionally forecast revenues of £1.7billion for this yr.

But Revolut failed to supply any updates on the standing of its all-important utility for a UK banking licence, with Storonsky, 39, merely saying the group remained ‘dedicated’ to securing the allow.

The firm additionally didn’t present a timeline on its utility regardless of it being practically 300 days because it stated it was anticipated to be granted a licence ‘imminently.’

The ongoing failure to safe a licence has been a ache level for the fintech agency, which suffered a sequence of embarrassing setbacks this yr.

The delays are additionally inflicting nervousness amongst buyers, with one key backer beforehand telling the Mail they had been changing into ‘impatient.’

Revolut utilized for a licence from the Bank of England in 2021, which might enable it to broaden its providers in Britain into taking deposits, making loans and providing bank cards.

It was thought the method would take about two years. But practically three years on, it’s nonetheless wading via calls for from the central financial institution’s Prudential Regulation Authority. When its long-delayed accounts for 2021 had been printed in March, Revolut’s then-chief monetary officer Mikko Salovaara insisted the licence can be granted imminently. But he give up in May for ‘private causes’.

No replace: Revolut failed to supply any updates on the standing of its all-important utility for a UK banking licence

The delays to the licence utility sparked an outburst from Storonsky. He branded Britain an undesirable place to do enterprise. City analysts, nevertheless, dismissed his feedback as a ‘tantrum’ and ‘bitter grapes’.

Revolut’s numbers additionally got here underneath intense scrutiny after auditor BDO revealed it was not in a position to independently confirm three-quarters of its £636m income, saying that some info could also be ‘materially misstated’.

BDO as soon as once more issued a certified opinion in its evaluation of the newest 2022 accounts.

But the auditor confused earlier points round Revolut’s controls had been ‘resolved’ and that it had been in a position to ‘get hold of ample applicable audit proof’ for the annual figures.

The outcomes had been additionally printed days earlier than an end-of-year deadline, which was prolonged from the tip of September on the firm’s request. It is the second yr in a row that Revolut has did not publish its accounts on time.

The ongoing questions over the banking licence are additionally piling stress on Revolut chairman Martin Gilbert, a former head of asset supervisor Abrdn.

Gilbert stated that regardless of a ‘difficult panorama, 2022 was a wonderful yr for Revolut’.

The financier is amongst a number of monetary bigwigs the corporate has introduced in to bolster its popularity.