(Alliance News) - Argentex Group PLC on Monday said its interim revenue fell as Covid-19 hit activity among its clients.
Shares in the London-based foreign exchange service provider were 20% lower at 109.04 pence each in London on Monday morning.
Argentex LLP - its UK Financial Conduct Authority regulated trading subsidiary - expects revenue in the six months ended September 30 to fall 15% year-on-year to GBP11.8 million from GBP13.8 million.
The revenue fall was "primarily driven by a reduction in client activity" due to Covid-19, Argentex said.
"This deferral of trading activity is expected to result in stronger trading volumes in the second half of the financial year. The underlying business performed well during the period as the group added a significant number of new customers as it continued to focus on increasing the quality and diversification of its client book, while also turning down trades that exceeded the group's risk appetite in order to maintain the integrity of its exposure profile," the company said.
Argentex added that it saw an 87% jump in the rate of new client acquisition compared to a year earlier and has invested in "new talent", increasing its sales team by 62%.
Argentex said: "The strong momentum in customer growth during the first half of the financial year along with the expected uptick in trading from the existing client base gives the directors confidence that the results for the second half, traditionally the slightly stronger half, will deliver a material improvement on the first half results."
By Eric Cunha; ericcunha@alliancenews.com
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Argentex Group. (AGFX)