LONDON (Alliance News) - Currency exchange firm FairFx Group PLC said Wednesday its profit leapt higher as operating leverage fed through from strong growth in its increasingly diversified revenue stream.
For the six months ended June, pretax profit surged to GBP2.0 million from just GBP150,392 a year prior. This was after revenue jumped to GBP9.0 million from GBP6.1 million the year before.
Revenue performance was boosted by a 86% jump in the gross value of currency transactions sold to GBP805.3 million from GBP434.1 million the year before. Meanwhile, gross value of currency transactions purchased rose to GBP796.3 million from GBP428.0 million the year before.
"The business has delivered an excellent first half performance both operationally and in terms of bottom-line," FairFx Chief Executive Officer Ian Strafford-Taylor said. "Top line turnover growth has continued, and with the group operationally geared revenue is increasingly flowing through to profit."
FairFx does not pay a dividend.
"This trend is expected to continue in the second half of the year as we grow further and rationalise the supply chain," Strafford-Taylor added. "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."
"Against this background, we remain confident that the full year results will be in line with expectations", Strafford-Taylor added.
Shares in FairFx were 4.0% higher at 143.49 pence on Wednesday.