Trading Update and Notice of Results

Aquis Exchange PLC

28 August 2024

 

FOR IMMEDIATE RELEASE

Aquis Exchange PLC

("Aquis" or the "Company")

Trading Update

and

Notice of Results

Aquis Exchange PLC (AQX.L), the creator and facilitator of next-generation financial markets, announces the following trading update for the year ending 31 December 2024.

Trading

Highlights for the six months ended 30 June 2024:

·    Net revenue up 3.5% to £10.0m (H1 23: £9.7m)

·    Cash and cash equivalents of £14.5m (H1 23: £13.9m)

·    Business highlights:

-     Aquis Markets - market share up to 5.20% (H1 23: 4.68%). Further diversification of the product suite on track to come in H2 24.

-     Aquis Technologies - contract pipeline has grown very strongly, and is now largest in the division's history. Early progress on development of expanded product set which broadens the future addressable market.

-     Aquis Data - revenues up 17.0% as member data fees come into effect; progress towards EU and UK consolidated tapes remains in line with management expectations and represents material potential upside for Aquis.

-     Aquis Stock Exchange - despite the continued challenging market condition for primary listings, the exchange has seen pleasing growth in trading volumes and fundraising levels.

Further information will be announced on 12 September 2024 in the Company's forthcoming interim results for the six months ended 30 June 2024.

Aquis Technologies - strategic progress

Aquis Technologies, where Aquis licenses its leading exchange related technology to a variety of international financial services clients across different asset classes, has continued to build on its strong pipeline of potential new contracts as reported at the time of the full year results in March 2024 and this now stands at the largest in the division's history.

In order to capitalise on the number and scale of new opportunities Aquis Technologies is assessing, the Board has decided to accelerate its programme of strategic investment in the division.

Aquis intends to invest an additional £6.2m over the next 3 financial years, of which approximately £0.3m will be expensed in 2024, on the build-out of a set of key products required to service the target accessible market. This will enhance Aquis' competitive positioning further through provision of the capability 'on demand' rather than a 'build on demand' approach.

With improved product availability and enhanced technology sales function resulting from this investment, the Company is targeting to increase both the number and quality of its technology contracts in the medium term which is expected to be a major contributor to overall revenues and cash flows.

The Company plans to provide further detail on the strategic investment in Aquis Technologies to investors initially at its Interim Results and in more detail at an upcoming Capital Markets Day in Q4 2024.

Whilst Aquis continues to be well positioned to address the substantial market opportunity for exchange technology solutions, and the contract pipeline has grown strongly in the half year, Aquis was informed on 27 August 2024 that a historical contract for a start-up exchange will not be renewed. This will reduce by approximately £1m the net revenue and profit before tax which Aquis had previously expected to be recorded from that renewal in the year ending 31 December 2024.

The division is focused on converting its strong pipeline to secure its revised expectations for the current financial year.

Outlook

2024 to date has seen Aquis continue to deliver on its strategic progress despite the challenging market and economic conditions.

In the Aquis Markets division, the change in proprietary trading rule which came into effect in late 2023 is working as intended, with market share growing to 5.20% from 4.68% at H1 23. There is more progress expected as members continue to adapt to this change.

Aquis Data revenues grew by 17% following the implementation of changes to member data charges from 1 June 2024. The Company continues to follow the progress of the UK and EU consolidated tapes, with no major update to or deviation from the expected timeline so far.

Despite the currently depressed primary listings environment across all exchanges, Aquis Stock Exchange has seen good progress on trading and secondary fundraising with a 44% increase in the value of trading compared to H1 23 and £87m raised on the exchange in H1 24.

In light of the contract non-renewal as set out above, the Board now expects the H2 2024 net revenues and profit before tax to be approximately £1m lower than its previous expectations.

The Company continues to benefit from a strong cash position of £14.5m as at 30 June 2024, which provides sufficient resources to enable Aquis to continue to invest in growth opportunities.

Alasdair Haynes, CEO, Aquis Exchange PLC, said:

"Whilst it is disappointing that our near-term trading has been impacted by a single contract, I am pleased with the progress that we continue to make in establishing the foundations to deliver our strategic objectives.

"In particular, I am excited to announce to investors our strategic investment into our Aquis Technologies division. The scale of our technology contracts has grown substantially in recent years, and Aquis is now considered a major and credible global player in the provision of regulatory-grade exchange technology. In order for us to fully capitalise on the opportunities in front of us, we have decided to adopt a more proactive strategy, building out our product suite across asset classes and furthering our significant technology and competitive advantage."

Notice of Results

The Company expects to announce its results for the six months ended 30 June 2024 on 12 September 2024.

An analyst webinar will be held at 09.30 a.m. on the morning of results. Analysts wishing to join the presentation can register via [e-mail].

The Company will also provide a live investor presentation through the Investor Meet Company platform on 12 September 2024 at 11:00 a.m. The online presentation is open to all existing and potential shareholders.

Questions can be submitted pre-event via the IMC dashboard up to 9.00 a.m. the day before the meeting or any time during the live presentation via the "Ask a Question" function. Although the Company may not be in a position to answer every question it receives, it will address the most prominent within the confines of information already disclosed to the market. Responses to the Q&A from the live presentation will be published at the earliest opportunity on the Investor Meet Company platform.

Investor feedback can also be submitted directly to management post-event to ensure the Company can understand the views of all elements of its shareholder base.

Investors can sign up to Investor Meet Company for free and add themselves to the meeting via https://www.investormeetcompany.com/aquis-exchange-plc/register-investor. Investors who have already registered will be automatically invited.

This announcement contains inside information for the purposes of UK MAR.  The person responsible for arranging the release of this announcement on behalf of the Company is Richard Fisher, Chief Financial Officer.

Enquiries:

Aquis Exchange PLC Alasdair Haynes, CEO Richard Fisher, CFO Adele Gilbert, Head of Marketing & Investor Relations	Tel: [phone] [e-mail]
Investec Bank plc (Nominated Adviser and Broker) David Anderson Lydia Zychowska St John Hunter	Tel: [phone]
Canaccord Genuity Limited (Joint Broker) Emma Gabriel George Grainger	Tel: [phone]
VSA Capital Limited (AQSE Corporate Adviser) Andrew Raca	Tel: [phone]

About Aquis Exchange PLC

Aquis Exchange PLC ("Aquis") is Europe's challenger exchange, creating better markets for a modern economy. Aquis has market-leading technology and innovative rules for trading, and offer primary listings and secondary trading of equities, along with global licensing of proprietary technology.

Aquis consists of four divisions:

Aquis Markets operates lit and dark order books, covering 16 European markets. For its lit books, Aquis uses 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 stock that they trade.

Aquis Technologies is the software and technology division of Aquis. It focuses on building better markets via the creation and licensing of cutting-edge, cost-effective exchange infrastructure technology and services, including matching engine and trade surveillance solutions.

Aquis Stock Exchange (AQSE) is a stock market providing primary and secondary markets for equity and debt products. It is authorised as a Recognised Investment Exchange, which allows it to operate a regulated listings venue. The AQSE Growth Market is divided into two segments 'Access' and 'Apex'; the Access market focuses on earlier stage growth companies, while Apex is the intended market for larger, more established businesses.

Aquis Data generates revenue from the sale of data derived from Aquis Markets and Aquis Stock Exchange to non-Member market participants.

Aquis is authorised and regulated by the UK Financial Conduct Authority and France's Autorité de contrôle prudentiel et de résolution and L'Autorité des marchés financiers to operate Multilateral Trading Facility businesses in the UK & Switzerland markets and in EU27 markets respectively. Aquis Exchange PLC is quoted on the Aquis Stock Exchange and on the AIM Market (AIM) of the LSE. For more information, please go to www.aquis.eu.

 

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