Argentex Group. Regulatory News (AGFX)

12 October 2020

Argentex Group PLC

Trading Update

Argentex Group PLC, ("Argentex", "the Group", "the Company"), the provider of bespoke foreign exchange services to institutions, corporates and high net worth individuals, today issues a trading update for the first half of the financial year ending 30 September 2020.

Argentex LLP, the Group's FCA regulated trading subsidiary, expects to report revenues for the six-month period to 30 September 2020 of £11.8 million. The 14.7% decrease in revenue vs the six months ending 30 September 2019 (£13.8 million) was primarily driven by a reduction in client activity, as the continued macro-economic uncertainty and the effects of the COVID-19 pandemic led to some clients deferring their trading activity.

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 Group has delivered an increase in the rate of new client acquisition of 87% compared to the same period last year and further progressed its long-term growth strategy when it opened its new London headquarters in September, delivering on its commitments of investing in new talent across the business, including a 62% increase in sales staff.

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.

Harry Adams, Co-CEO commented: "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. Despite frustrations over the drop in trading activity throughout the period I'm proud of how our people have adapted and delivered for our clients. 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."

Carl Jani, Co-CEO said "The strong underlying performance of the business - notably the marked elevation of new client acquisition - is testament to our focused, long-term approach. In the face of a surge of client interest, we have focused on the quality of revenue over trading volume, remaining true to our strict risk management processes. Due to strong business fundamentals we have confidence in our ability to weather the uncertain environment, supported by a new office, a growing and increasingly talented workforce and a business model with proven resilience."

Argentex will be reporting its interim results for the six months ended 30 September 2020 on 20 November 2020.

For further information please contact:

Argentex Group PLC

Carl Jani, Harry Adams - Co-CEOs

(Via FTI Consulting)

FTI Consulting (Financial PR)

Ed Berry / Shiv Talwar / Ambrose Fullalove

Telephone: 07703 330 199

argentex@fticonsulting.com

Numis Securities Limited (Nominated Adviser and Broker)

Stephen Westgate, Charlie Farquhar, Laura White, Hugo RubinsteinTelephone: +44 (0) 20 7260 1000