Last checked at (Sharecast News) - Foreign exchange services provider Argentex said on Monday that interim revenues had fallen as the Covid-19 pandemic had weighed on activity among clients.
Argentex expects revenues at Argentex LLP, its FCA regulated trading subsidiary, to post revenues of £11.8m for the six months ended 30 September, a 14.7% decrease year-on-year.
The AIM-listed firm said the drop was principally due to a reduction in client activity resulting from continued macro-economic uncertainty and the effects of the Covid-19 pandemic.
However, Argentex expects the deferred activity to result in stronger trading volumes in the second half of the trading year and added that it had witnessed an 87% jump in the rate of new client acquisition year-on-year and said it had invested in "new talent", increasing its sales team by 62%.
Co-chief executive Harry Adams said: "As the long-term impact of the Covid pandemic on global markets continues to be laid bare, it has never been more important to stand by our clients and ensure their growing FX trading needs are met.
"Whilst clients delaying their trading activity has impacted our revenues, each of them has a commercial need to remove FX risk, so we expect a significant backlog of client volumes to be realised, the timing of which will likely depend on market and geopolitical events."
As of 1150 BST, Argentex shares had tumbled 18.96% to 110.22p.
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