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(Alliance News) - Foreign exchange service provider Argentex Group PLC issued its maiden interim results on Wednesday, reporting strong growth in revenue and FX turnover.
In the six months to September 30, Argentex recorded an operating profit of GBP8.6 million, almost double the GBP4.4 million reported the year before.
Revenue jumped 47% year on year to GBP13.8 million from GBP9.4 million. The company's FX turnover in the first half was GBP5.96 billion, 16% higher than the GBP5.12 billion seen the year before.
"Overall, FX turnover increased and on a swap-adjusted basis, trading activity in the first six months of the year has remained consistently in line with historical trade profiles, with the ratio of spot to forward FX trades being 2-to-1 by volume and approximately 50/50 by revenue, demonstrating the composition of business undertaken by the group has not changed since the IPO," Argentex explained.
The company said it is "pleased" with performance in the first half, resulting in confidence it will meet expectations for the full year.
Co-Chief Executives Harry Adams and Carl Jani added: "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."
Since listing, Argentex recorded GBP4.0 million in operating profit on GBP9.3 million in revenue.
The company intends to begin dividend payments following the first audit of its financial 2020 results.
Looking ahead, Argentex said Brexit is creating a "positive" trading environment for the firm.
"Sustained pressure on sterling during the reporting period has generated strong appetite from clients exporting from the UK, or repatriating overseas revenues into the UK, who are taking advantage of favourable conditions to transact in both spot and forward markets. The continued uncertainty over the political landscape in the UK and overseas is expected to perpetuate currency volatility, and consequently give Argentex's clients further requirement to manage their current and future currency exposures in a timely manner," the company said.
Argentex added larger swings caused by higher degrees of uncertainty are expected to provide greater opportunities in the short term.
"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," the co-CEOs added.
Shares in Argentex were down 4.2% in London on Wednesday at 165.50 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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