FairFX, the e-banking and international payments group, announces its interim results for the six months ended 30 June 2018.
- Group turnover(1) of £1,067.4 million (H1 2017: £434.8 million), an increase of 146% (23% on a like-for-like basis)
- Group revenue of £12.0 million (H1 2017: £6.1 million), an increase of 97% (15% on a like-for-like basis)
- Gross profit of £9.7 million, an increase of 100% (H1 2017: £4.8 million)
- Adjusted EBITDA(2) of £2.7 million (H1 2017: £0.2 million)
- Adjusted PBT(3) of £2.6 million (H1 2017: £0.2 million)
- Adjusted net profit margin increases by a factor of 10 to 21.9% (H1 2017: 2.7%)
(1) Turnover is measured by gross value of currency transactions sold of £805.0 million plus gross value of deposits into bank accounts of £262.4 million for a total of £1,067.4 million
(2) Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation charges, acquisition-related expenses, share-based payments and foreign exchange gains and losses
(3) Adjusted PBT is profit before tax, acquisition-related expenses, amortisation of acquisition intangibles, share-based payments and exchange rate gains or losses
- Acquisition of City Forex providing economies of scale
- Successful migration of FairFX international payments to City Forex Platform
- Commencement of self-issuance of cards under Mastercard membership
- Corporate card turnover growth of 28% to £74.8 million (H1 2017: £58.7 million)
- Launch of Fair Everywhere business current account
- Including customers acquired as part of City Forex acquisition, there have been 182,171 new customers added to the business bringing the total number of customers to 911,156.
- 1 million customer milestone passed
- Strong start to H2 with turnover in July and August up 152% year on year (23% on a like for like basis)
- Strong performance despite tough macro environment for travel money products – weak Sterling, Brexit, hot UK summer
- International Payments up 146% year on year (41% on a like for like basis)
- Corporate expense platform up 41% with growth rate accelerating
- Commencement of transfer of Corporate platform to new supply chain
- New Corporate expenses app with receipt upload and VAT reporting established
- Continued focus on sustainable turnover growth and rationalisation of supply chain
- FairFX Ireland to be expanded and regulated to cover Brexit risk and reduce reliance on strength of the Pound
Commenting on the results and outlook, Chief Executive Officer of FairFX, Ian Strafford-Taylor, said: “The business has delivered an excellent first half performance both operationally and in terms of bottom-line. Top line turnover growth has continued, and with the Group operationally geared revenue is increasingly flowing through to profit. This trend is expected to continue in the second half of the year as we grow further and rationalise the supply chain. Achieving this performance against a backdrop of weak Sterling, combined with less people taking holidays in 2018 due to the warm summer in the UK, bears testament to the great strides we have made in recent years to broaden the product mix and reduce our reliance on revenues from foreign exchange.
“The outlook for the Group for the balance of the year remains positive despite Brexit weighing on Sterling and providing a headwind. We are actively improving the supply chain both in terms of robustness and improved economics, which we strongly believe will feed through in the second half. We also have an exciting pipeline of product enhancements for the remainder of 2018, and we look forward to updating the market in due course.
“Against this background, we remain confident that the full year results will be in line with expectations.”