Dojo has established itself as arguably the UK’s leading SME payments provider. But 2024/5 results for Typhoon Noteco (the holding company) show a business continuing to strain under the weight of its £649 million debt mountain, even as transaction volumes continue to grow and international expansion gathers pace.
Payment volume in the year to March 2025 rose 8% to £46.2 billion, a remarkable fourfold increase since 2020, but rather slower than the breakneck rates of recent years. Transaction volumes grew in line, keeping the average ticket flat at £19.25. Dojo claims a 12.5% share of the UK SME card-present acquiring market; evidence of its scale, but also a sign that it is now bumping up against the limits of its early-mover advantage.
Customer numbers were unchanged at around 146,000. Growth instead came from doing more with the same base: volume per merchant was up 9% to £314,000, double the level of four years ago, and revenue per merchant climbed 12% to £3,105. This upmarket shift suggests Dojo is increasingly targeting larger SME accounts though its relationships with ISVs, rather than chasing new signings at the bottom end of the market.
Dojo’s early success rested on its fast, elegant Android terminals (notably the PAX A920), a slick onboarding experience, and a distribution model powered by self-employed agents. It has since expanded its product suite to include SoftPOS and claims over 450 ePOS and ISV integrations. That strategy has worked but it has also been copied.
The so-called “tap pack” — SumUp, Viva, myPOS, Zettle and now FlatPay — are all pressing into the UK. Shift4, meanwhile, has entered aggressively, acquiring a small ISO and poaching from Dojo’s salesforce. Adyen is hoovering up ISV relationships while software-first providers such as Toast are increasingly offering integrated payments solutions that sideline traditional high-street focused payment players.
With UK growth moderating, international expansion is becoming central to Dojo’s story. The group has secured an e-money licence in Ireland and has launched its SME proposition in Spain (hiring a strong local team) and Italy. These markets are dominated by incumbent acquirers who have been slow to modernise, but unlike the UK in 2020, Dojo won’t enjoy years of open runway. Competitors, including many of the “tap pack” are already established and local conditions tougher, making execution key.
Returning to the 2024/5 results. Dojo’s turnover increased 11% to £455 million, but gross profit grew just 4% to £226 million. Operating profit fell sharply to £17 million as administrative costs rose. Staff expenses were well controlled: total spend rose just 3% to £85.6 million, with headcount flat at 1,153 and average cost per employee steady at £74k.
Finance costs remained punishing at £92.6m, broadly unchanged from 2023, but still more than five times operating profit. This pushed pre-tax losses to £75 million. Accumulated losses now stand at an eye-watering £720 million.
Cash at year end was stable at £39 million, but with net debt at £649 million and an effective interest rate of 14%, leverage remains punishing at 6.6× EBITDA. An equity injection of $190 million in April 2025 by a new investor into the parent company will help, but it underlines how dependent the group is on fresh capital to sustain expansion.
Dojo had planned to move from its high-profile office in the Brunel Building at Paddington – which it shares with the Premier League and GB News – to the even swankier Renzo Piano-designed Paddington Square nearby. The deal fell through leaving Dojo obliged to settle this long running property dispute with an agreed payment of £15.7m
Dojo remains a formidable player: scale, brand recognition, and a strong partner network have given a significant chunk of the UK SME market, with volumes still climbing and margins holding steady.
The question for 2025 and beyond is whether international expansion can deliver the kind of acceleration needed to cover the finance costs and push the group towards genuine profitability. Dojo has proven it can win merchants and grow volumes. Now it has to prove it can do so profitably, and in markets where it no longer has first-mover advantage.
