FAIRFX Group PLC – Final Results

FAIRFX Group PLC – Final Results

FairFX, the e-banking and international payments group, is pleased to announce its audited full year results for the year ended 31 December 2018.

Financial highlights:

  • Group turnover(1) in excess of £2.3 billion (2017: £1.1 billion), an increase of 111% (55% on like-for-like basis*)
  • Group revenue of £26.1 million (2017: £15.5 million), an increase of 69% (39% on like for like basis*)
  • Gross profit of £20.5 million (2017: £11.9 million), an increase of 60% (40% on a like for like basis*)
  • Adjusted EBITDA(2) of £7.51 million (2017: £0.95 million), an increase of over 680%
  • Adjusted PBT(3) of £6.79 million (2017: £0.90 million), an increase of over 650% 

*Excluding the effect of the acquisition of City Forex in February 2018 

(1)    Turnover is measured by gross value of currency transactions sold of £1,783.7 million plus gross value of deposits into bank accounts of £585.5 million for a total of £2,369.2 million
(2)    Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation charges, acquisition-related expenses, share-based payments, foreign exchange gains/losses on collateral posted, re-organisation costs and non-recurring items.
(3)    Adjusted PBT is profit before tax, acquisition-related expenses, amortisation of acquisition intangibles, share-based payments, foreign exchange gains/losses on collateral posted, re-organisation costs and non-recurring items. 

Operational highlights:

  • Acquisition of the City Forex business in February 2018 adding additional dealing and physical cash scale
  • Successful integration of City Forex payments, settlement and accounting platform into Group
  • Surpassed 1 million customers
  • Commenced self-issuance of cards under Mastercard direct membership
  • Significant investment into technology platforms to underpin continued growth and diversification
  • Commercial terms agreed to gain access to US markets for payments and corporate cards

Q1 2019 highlights: 

  • Group turnover of £620.5 million (2017: £467.2 million), an increase of 33%
  • Group revenue of £7.0 million (2017: £4.9 million), an increase of 43% and ahead of Board’s expectations
  • Growth across all segments over the same period in 2018
  • Achieved direct access to Faster Payments incorporating real-time gross settlement (RTGS) accounts at Bank of England underpinning significant developments in customer offering
  • Ahead of plans for supply chain rationalisation and improved commercial terms yielding wider profit margins

Commenting on the results and outlook, Ian Strafford-Taylor, Chief Executive Officer, said: 

“2018 was a transformational year in the evolution of the Group. We continued our strong growth, both organic and via acquisition, and combined this with significant investment in our people and technology to lay the foundations for our ongoing expansion. The addition of the City Forex business in February provided both an increase in revenues and a payments platform that combines a full front-to-back process which is now yielding efficiencies and capacity across the whole Group.

“The Group has enjoyed a strong start to 2019, with the first quarter delivering a further jump in turnover along with improved margins helped by supply chain rationalisation and improved commercial terms. The investments in technology we made in 2018 are already bearing fruit in 2019, just one example being the granting of Bank of England settlement accounts and direct access to the Faster Payments scheme. Our technology platforms are now enabling us to iterate our product suites rapidly in terms of both improved customer experience and functionality. Against this backdrop, the Board is confident in achieving expectations for the full year.”

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