Zilch recently announced a strategic shift, halting its US expansion efforts.
- The company will focus on enhancing its UK operations due to a notable increase in turnover.
- A significant decision came as Zilch reached its first full month of operating profit.
- Revenues climbed to £57.1m, marking a 90% increase from the previous year.
- The change includes maintaining US regulatory status and partnerships.
Zilch, a prominent fintech company, has declared a strategic shift prioritising its operations in the United Kingdom over the United States. This decision arises amidst a considerable 90% increase in turnover for the year ending March, showcasing significant financial growth. The company’s decision to refocus on the UK market is driven by the potential for compelling and measurable returns, according to Hugh Courtney, Zilch’s Chief Financial Officer.
Zilch’s operational curtailment in the US marks a departure from its previous aggressive expansion strategy. The company’s original plan included establishing a new office in Miami, with a recruitment ambition of up to 100 new employees. Despite the shift, Zilch intends to maintain its regulatory status and partnerships with US vendors, reserving the possibility for future expansion contingent on favourable market conditions and the acquisition of substantial growth capital.
Chief Executive Officer Philip Belamant highlighted the backdrop of rising living costs and the burden of fees and interest on consumers as opportunities for Zilch’s growth. He stated that their product offers value by eliminating these costs while providing similar benefits. In the financial year 2024, Zilch made remarkable financial progress through strategic initiatives aimed at enhancing product offerings, optimising cost structures, and improving credit management practices.
The company’s financial reports indicate a near-doubling in revenue to £57.1m, with pre-tax losses reducing by 30% to £50.2m. These figures reflect efforts to prepare the company financially for a potential initial public offering (IPO) in London. In September, Zilch achieved its first-ever month of operating profit, underscoring progress towards long-term profitability goals.
In June, Zilch secured a debt financing deal of £100m with Deutsche Bank to support its preparation for an IPO. While there is consideration for conducting the IPO overseas, this depends on upcoming Financial Conduct Authority (FCA) reforms and their impact on London’s market appeal.
Zilch’s strategic pivot underscores its commitment to solidifying UK operations while maintaining a cautious outlook on US expansion.
