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6 Apr 2021 07:00
6 April 2021
Argentex Group PLC
Full Year Trading Update
Argentex Group PLC, ("Argentex" or "the Group"), the provider of foreign exchange services to institutions, corporates and high net worth private individuals, today issues a trading update for the 12 months to 31 March 2021.
Highlights*:
· Full year revenue stable at £28.1m (2020: £28.9m)
· Robust H2 revenue of £16.4m (2020: £15.2m)
· Record growth in customer acquisition with 665 new corporate clients added (2020: 479)
· Significant operational progress including a move to new offices
Argentex is expected to report revenues in line with expectations of £28.1 million for the 12 months to 31 March 2021 (2020: £28.9 million) with Foreign Exchange ("FX") Turnover exceeding £12.5bn (2020: £12bn). This was driven by a significant improvement in trading in H2 with expected revenue of £16.4m (2020: £15.2m) as a result of a return in client confidence and trading activity, which had been deferred from 2020.
The strong growth in the rate of new client acquisition has continued with 665 new corporate clients added in the twelve months. The Group continued to maintain its prudent and proactive approach to risk management, focusing on the quality and diversification of its book with bad debt levels remaining at historically low levels.
Despite spending the majority of the financial year working remotely, the Group successfully navigated all three national lockdowns and continued to invest in both front and back office talent along with a move to new, substantially larger Covid-secure offices giving the Group ample capacity to meet its growth targets.
Harry Adams, CEO, commented:
"Despite the unexpected and challenging market backdrop, we have continued to deliver our stated growth strategy, albeit at a slower pace in this financial year. We are seeing a resurgence in client trading to pre-pandemic levels following the deferral of client activity during the first half and we expect that trend to continue with the arrival of a more positive macro-economic environment.
"During the period we continued to invest in technology, our systems and our people and we have a strengthened management team and new premises to help accelerate our growth ambitions.
"The resilience of our people and business model has been a defining factor during the period and I am confident we are well positioned to deliver for a growing client base and maintain our expected growth trajectory."
*for Argentex LLP (the Group's FCA regulated trading subsidiary)
-ENDS-
For further information please contact:
Harry Adams - CEO
Jo Stent - CFO
(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
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