Argentex Group PLC – Interim Results Statement
Argentex Group PLC, the provider of foreign exchange services to institutions, corporates and high net worth private individuals, today issues its maiden interim results for the period ended 30 September 2019, following its admission to AIM in June 2019.
Financial highlights
Underlying results for Argentex LLP for the six month period 1 April 2019 to 30 September 2019
· Foreign Exchange (“FX”) Turnover(1): £5.96bn (H1 19: £5.12bn) – up 16.4%
· Revenue: £13.8 million (H1 19: £9.4m) – up 41.7%
· LLP profits after members’ remuneration: £6.5m (H1 19: £2.6m)
Argentex Group PLC results for the period from incorporation* on 26 April 2019 to 30 September 2019
· Revenue: £9.3m
· Underlying Operating Profit(2): £4.3m
· Underlying Operating Profit Margin: 46.2%
· Adjusted Profit before Tax(3): £4.3m
· Profit after tax: £3.2m
· Earnings per share: 2.8p (basic), 3.0p (underlying)
(1) FX turnover represents gross currency sales of the Group’s FX product offering
(2) Operating profits of Argentex Group PLC, before IPO costs and share based payments
(3) LLP Profits available for distribution to Argentex Group PLC, before IPO costs, share based payments and other administrative costs
*Note: financial statements for Argentex Group PLC are presented from incorporation on 26 April 2019 to 30 September 2019. Argentex Group PLC acquired Argentex LLP on 24 June 2019, immediately prior to listing. No material income or expenditure was incurred by Argentex Group PLC prior to the listing.
A separate Income Statement for Argentex LLP for the full six-month interim period is presented at the end of this report.
Operational highlights
· Successful admission to trading on AIM on 25th June 2019, raising net proceeds to the Company of £12 million and increasing the Company’s trading capacity
· Growth in FX turnover and revenue driven by increased client numbers and FX volume traded:
o 210 new corporate clients signed during the period
o Increased productivity of sales team as staff gain experience, leading to improved client conversion and quality
o 932 corporate clients actively trading in the period
· In advanced stages of negotiation for new premises to enable significant expansion in headcount across all areas
· Non-Executive Board strengthened with the appointment of Lena Wilson CBE FRSE as Senior Independent Director and Chairwoman of the Nominations Committee
Commenting on today’s results, Harry Adams and Carl Jani Co-CEOs of Argentex Group PLC said:
“During the period, we reached a significant milestone in the Company’s history, when we were successfully admitted to trading on AIM in June. At that time, we had a clear message of commitment to our growth strategy and proven business model, which has delivered profitable growth since inception.
“We look forward to generating returns for our new investors by continuing to address underserved parts of the FX market and using our stronger balance sheet to grow organically whilst selectively taking advantage of long-term opportunities that are now available to us.”