FairFX, the e-banking and international payments group, is pleased to announce the following trading update for the year ended 31st December 2018.
Full year turnover for the Group was £2.36 billion, an increase of 111% on the prior year (2017: £1.12 billion) and in line with management expectations. Turnover was up 22% excluding the effect of the acquisitions of CardOne Banking in August 2017 and City Forex in February 2018.
The Group has demonstrated strong growth during FY18 and expects to report adjusted EBITDA of approximately £7.5 million for the 12 month period (FY17: £1.0 million).
Growth was again driven by the Group’s continued focus on its core products of International Payments (up 134%) and Prepaid Cards (up 8%). In keeping with the Group’s stated strategic objective of growing the Corporate segment of the business, usage of the Company’s corporate card platform rose by 30% compared to 2017. Furthermore, during FY18, 315,000 new UK domiciled retail customers were acquired bringing the total to 1,040,000 customers.
The Group has continued to invest in the CardOne business and platform to pursue identified opportunities which are expected to be realised during the current financial year.
The other key area of strategic focus for the Company has been to invest in the platform and rationalise the supply chain. Pleasingly, further advances were made during the year, including self-issuance of CardOne corporate cards under our Mastercard membership. One area of focus was the removal of a layer of the supply chain and improve margins across the corporate card division, and whilst good progress was made this was slower than the Board would have liked. The Board expects this to be finalised and to contribute improved margins during the current financial period.
Whilst Brexit uncertainty depressed Sterling against the Dollar and Euro during FY18 weighing on customer sentiment and activity, the Group demonstrated significant growth through the year. Ongoing, and even potentially lengthened, Brexit negotiations continue to provide macro-economic headwinds for the business. The Board is pleased to confirm, however, it expects 2019 to be another year of significant growth.