Last checked at 19 Dec 2019 07:00
19 December 2019
Aquis Exchange PLC
("Aquis", the "Company" or the "Group")
Announcement on timing of NEX Exchange Acquisition
and
Trading Update
Following the announcement made on 5 July 2019 regarding the agreed acquisition of NEX Exchange Limited ("NEX Exchange"), Aquis Exchange PLC (AIM: AQX.L), confirms that it continues to await FCA approval.
The application is progressing and FCA approval is now anticipated to be received in early 2020. The Company will update the market further upon its receipt and completion of the acquisition.
Trading Update
The Company also announces that it expects to deliver results for the year ending 31 December 2019 in line with market expectations, despite a challenging market environment.
With FY2019 revenues set to increase by approximately 70% from the prior year and the Company approaching EBITDA breakeven, the Board believes that Aquis' subscription-based business model is becoming well established. Market share in Europe has risen from 3.8% to 4.7% over the last 12 months and from 2.6% since the IPO in June 2018. Strong revenue growth in the core business is anticipated to continue in 2020, albeit at a slower rate than this year, and growth will be further supplemented by the acquisition of NEX Exchange.
With a proven business model and greater political and economic clarity in the UK post the General Election, the Board considers that now is the right time to invest further for the long-term success of the business. Investment in Aquis' sales and technology will be increased by around £1 million per annum from 2020 to take advantage of the scope for significant long-term sales and value creation for shareholders.
The Company expects to announce its audited results for FY19 in March 2020 and still expects to deliver a positive EBITDA in 2020. Cash remains healthy and is expected to end the year at around £11m.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 (MAR).
Enquiries:
Aquis Exchange PLC | Tel: +44 (0) 20 3597 6321 |
Alasdair Haynes, CEO Jonathan Clelland, CFO and COO | |
Belinda Keheyan, Head of Marketing | Tel: +44 (0) 7768 078110 |
Liberum Capital Limited (Nominated Adviser and Broker) | Tel: +44 (0) 20 3100 2000 |
Clayton Bush Chris ClarkeEdward Thomas Kane Collings | |
Alma PR (Financial PR Adviser) | Tel: +44 (0)20 3405 0209 |
Rebecca Sanders-Hewett Caroline Forde Susie Hudson | aquis@almapr.co.uk |
About Aquis Exchange
Aquis Exchange PLC is an exchange services group, which operates a pan-European cash equities trading business (Aquis Exchange) and develops and licenses exchange software to third parties (Aquis Technologies).
Aquis Exchange PLC (AQX.L) is quoted on the London Stock Exchange's Alternative Investment Market (AIM).
Aquis Exchange is authorised and regulated by the UK Financial Conduct Authority and France's Autorité des Marchés Financiers to operate Multilateral Trading Facility businesses in the UK and in EU27 respectively.
Aquis operates a lit order book and does not permit aggressive non-client proprietary trading, which has resulted in lower toxicity and signalling risk on Aquis than other trading venues in Europe. According to independent studies, trades on Aquis are less likely to lead to price movement than on other lit markets. Aquis applies a subscription pricing model which works by charging users according to the message traffic they generate, rather than a percentage of the value of each security that they execute. This model can significantly reduce the cost of trading.
Aquis Technologies is the software and technology division of Aquis Exchange PLC. It creates and licenses cutting-edge, cost-effective matching engine and trade surveillance technology for banks, brokers, investment firms and exchanges.
For more information, please go to www.aquis.eu and www.aquis.technology.