Interim Results

RNS Number : 6002F

Argentex Group PLC

08 November 2022

 

8 November 2022

THIS ANNOUNCEMENT HAS BEEN DETERMINED TO CONTAIN INSIDE INFORMATION. THE PUBLICATION OF THIS ANNOUNCEMENT MEANS THAT THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Argentex Group PLC

("Argentex" or the "Group")

Interim results for the period ended 30 September 2022

Strong growth strategy drives record financial performance

Argentex Group plc, the international provider of foreign exchange services to institutions, corporates and high net worth private individuals, today issues its interim results for the six-month period ended 30 September 2022.

Financial highlights

·   Group revenue growth of 75% to £27.4m compared to same period last year (HY22: £15.7m)*

·   Adjusted operating profit** up 55% to £7.3m (HY22: £4.7m)

·   Adjusted operating profit margin down by 3.3% to 26.6% (HY22: 29.9%) but ahead of expectations

·   Short-term cash generation remains strong at 75% (HY22: 82%)

Operational highlights

·   Corporate clients trading up 12% to 1,393 (HY22: 1,241)

·   Structured solutions contributing 9.5% of revenue for HY23 (HY22: 3%) exceeding expectations

·   Spot/forward/structured solutions revenue mix (excluding swaps) was 39.2%/51.3%/9.5% in the period (HY22: 49.3%/48.8%/1.9%)

·   Clients trading on new online platform grew by 82%

·   80% of volumes comprised trades in sterling, euro and US dollar, significantly limiting the impact of risks in emerging market currencies

·   Argentex BV (our Netherlands entity) has exceeded expectations and is generating meaningful revenue following the award of our Electronic Money Institution (EMI) licence

*The Group has changed to a 31 December year end and for this year reports unaudited 6 months to 30 September 2022 and audited 9 months to 31 December 2022.  HY22 refers to the period from 1 April 2021 to 30 September 2021, the first half of the last financial year ended 31 March 2022.  HY23 refers to the period from 1 April 2022 to 30 September 2022. 

** Adjusted operating profit excludes non-adjusted expenditure and share-based payments as shown in the Consolidated Statement of Profit or Loss and Comprehensive Income.

Strong progress against three-pillared growth strategy

Technology

·   New best in class online platform launched in February 2022 leading to an 82% growth in clients trading online

·   Online platform revenues increased 225% to £0.9m

·   Further investment in technology will create efficiencies and enhance profitability

International expansion

·   Argentex BV now meaningfully contributing to Group revenue

·   Electronic Money Institution ("EMI") licence awarded by the Dutch National Bank in September, resulting in successful passporting application to all EU countries

People

·   Average headcount increased by 38 FTE (excluding directors and LLP partners) totalling 107 in HY23 (HY22: 69)

·   Average headcount per region (with growth):

	UK	NL	AUS
Non-sales	38 (+12)	2 (+1)	3 (+3)
Sales/dealing	50 (+12)	12 (+8)	2 (+2)
	88 (+24)	14 (+9)	5 (+5)	107 (+38)

Outlook

Momentum has continued across all facets of the strategy into the last quarter of our new reporting period.  Although market dynamics continue to be supportive, we maintain a balanced approach to risk, particularly in light of the uncertainty through this period of high inflation.

As highlighted in the 3 October trading update, the Board expects that the financial performance for the full year will exceed current market expectations and in the medium term expects initiatives to generate a strong return on investment through growth in revenues and optimisation of revenue mix, thereby boosting profitability and improved earnings quality.

Harry Adams, CEO of Argentex commented :

"I am delighted Argentex has delivered another record financial performance, underpinned by our new growth strategy. Our core business goes from strength to strength, resulting in high double-digit revenue and profit growth. All pillars of our growth strategy have exceeded expectations, driving strong momentum into H2."

"We have leveraged our evolving suite of products and leading customer service levels to capture a growing book of high quality, diversified corporate clients who seek a trusted and well-capitalised counterparty to provide solutions to their global foreign exchange needs in today's uncertain market environment."

Analyst presentation

Argentex will host an online presentation for equity analysts at 09:30 today. Analysts wishing to register should RSVP to FTI Consulting: [e-mail]  

Retail investor presentation

Management will host a live presentation and Q&A for retail investors via the Investor Meet Company platform at 16:00 today. The presentation is open to all existing and potential shareholders.

Investors can sign up to Investor Meet Company for free and add to meet Argentex Group PLC via: https://www.investormeetcompany.com/argentex-group-plc/register-investor

For further information please contact:

Argentex Group PLC

Harry Adams - Chief Executive Officer

Jo Stent - Chief Financial Officer

[e-mail]

FTI Consulting (Financial PR)

Ed Berry / Ambrose Fullalove / Jenny Boyd

Telephone: [phone]

[e-mail]

Singer Capital Markets (Nominated Adviser and Broker)

Tom Salvesen / James Maxwell / Justin McKeegan

020 7496 3000

Forward looking statements

This announcement contains certain forward-looking statements with respect to the financial condition, results of operations and businesses and plans for Argentex Group PLC. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that have not yet occurred. There are a number of different factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. Nothing in this statement should be construed as a profit forecast.

The release, publication, transmission or distribution of this announcement in jurisdictions other than the United Kingdom may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published, transmitted or distributed should inform themselves about and observe such restrictions. Any failure to comply with the restrictions may constitute a violation of the securities laws of any such jurisdiction.

Overview

Argentex has maintained strong momentum through the first half of the financial period making progress both strategically and operationally to deliver a record financial performance. The core business continues to strengthen, driving high double-digit revenue and adjusted operating profit growth of 75% and 55% respectively.

Our evolving suite of technology-enabled products alongside our high customer service levels have attracted a growing number of corporate clients who seek a trusted and well capitalised counterparty to provide tailored solutions to fit their global foreign exchange needs in today's uncertain market environment.

Whilst the period included two weeks of heightened volatility in the pound, our scalable, highly cash generative and increasingly diversified business model continues to demonstrate its long-term resilience and highlight the Group's ability to deliver for all stakeholders against any economic backdrop.  

Financial performance

During the period, the Group has focused on delivering against its growth strategy and capitalising on growing corporate demand for a focused, "right tech, right touch" service which has resulted in a 75% increase in HY23 revenues to a record £27.4m (HY22: £15.7m). 

In addition to a continued drive to improve efficiency, the Group maintained a disciplined approach to costs during the period, resulting in a 55% increase in adjusted operating profit to £7.3m (HY22: £4.7m).  

Strong client relationships have delivered an increase in revenue from existing clients combined with an increase in the number of new corporate clients by 12% to 1,393 (HY22: 1,241). 

Our new Structured Solutions division performed well, contributing 9.5% of total Group revenue in the period compared to just 2% of total revenue for HY22. The business remains committed to offering suitable products to professional counterparties only. These products are for commercial purposes and therefore the Group does not offer speculative products such as TARFs (Target Redemption Forward) and TARNs (Targeted Accrual Redemption Note).

The core business historically was made up of spot forward product mix only and has been split broadly 50:50 in the past. In HY23 the product mix has changed to include structured solutions or options products with spot contracts representing 39.2% of revenue. Forwards attract higher spreads due to factors such as increased client credit risk, but the payoff to higher revenue is having to wait until the contract is settled to realise the cash. A blend of spot and forward contracts is therefore important for an optimum mix of revenue generation and cash flow. Although spot contracts represent a lower percentage of total revenue in HY23, the cash generation impact is mitigated by the fact that options represent 9.5% of revenues and carry a premium which is paid up front. 75% of revenues in HY23 convert to cash within a three-month period, compared to 82% HY22.  Furthermore over 80% of volumes comprised trades in sterling, euro and US dollar, significantly limiting the impact of risks in emerging market currencies.

Growth Strategy

We are encouraged that our core business, underpinned by the strong momentum from our growth strategy, is delivering well against our ambitious expectations and generating a significant increase in revenues.

TECHNOLOGY

Our technology investment is directly focused on supporting all of our growth pillars - enhancing our product offerings including the breadth of our online services proposition, supporting the solid growth in structured solutions, supporting the increased regulatory requirements of our global expansion, as well as supporting our people by making them more efficient and effective.

Our proprietary platform and the new online service have already delivered tangible results and opened up new market opportunities. We will continue to enhance both the products available and open up additional market segments to serve in the coming period.

Our new online platform was launched in February with a fully mobile responsive interface allowing our clients to transact anytime, anywhere at their convenience. The client response has been extremely encouraging with 290 clients using the service during the period, increasing online clients in the period by 82%, building a solid foundation for scaling our business through increased dealing efficiencies, deeper wallet share, and wider client segment appeal as we add additional capabilities. We expect that trend to continue and are confident this investment in technology will strengthen our client relationships and facilitate further geographical cross-sell opportunities and provide a solid base to improve margins over time. 

INTERNATIONAL EXPANSION

Our international growth strategy is focused on capturing market share in target regions.  As such, I'm delighted that during the period Argentex's Dutch subsidiary Argentex BV was awarded an Electronic Money Institution ("EMI") licence by the Dutch National Bank.  The licence enables Argentex to operate its full business model to access the growing Dutch FX market.

This gold standard licence endorses Argentex's differentiated and uncompromising appoach to regulation and will enable the Group to build on its strong position seamlessly across Europe by scaling more efficiently in a region that is full of opportunity. 

We continue to engage in meaningful conversations with other overseas regulators, and the Dutch National Bank, to ensure the right licences are awarded to our businesses in key target international markets. We expect to update investors on progress of our launch in Australia in 2023.

PEOPLE

We are adhering to our plan and have made 20 new hires for the reporting period, 9 of which have been in our international offices (7 in Netherlands and 2 in Australia). Importantly, we have made senior hires into Credit Risk and Change Management, this has meant that our average headcount in the period increased by 38 FTE and totalled an average of 107 for the period (excluding directors and LLP Partners) compared to 69 in the prior period.

Outlook

It has been over three years since Argentex made its debut as a publically traded business. The business continues to mature, professionalise and adapt to changing market dynamics and the needs of its clients. We will remain focused on delivering on our three pillar growth strategy to build an agile, efficient, scalable and diverisified platform that will drive results for all stakeholders in all market conditions.

The strategic measures we are taking now and our continued investment programme are designed to position the Group to capitalise on the significant opportunities both geographically and through productisation to become a leading technology-led financial services provider.

Given the strong HY performance and continued positive momentum in the last quarter of this reporting period, the Board is confident the Group will exceed current market expectations for the full year and expects our initiatives to generate a strong return on investment through growth in revenues, optimisation of revenue mix, boost in profitability and improvement in earnings quality.

Due to the shortened reporting period for the 9 months to the end of December 2022, the Board has determined not to pay an interim dividend but intend to pay a final dividend representing the 9-month period post year-end.

On behalf of the Board, I would like to thank our people, shareholders and our clients for their continued support and contribution to our ongoing success.

Harry Adams,

Chief Executive Officer

FINANCIAL REVIEW

Revenue

In the six-month period to 30 September 2022, Argentex generated revenues of £27.4m, representing an increase of 75% on the prior year six-month period. The breakdown of revenue by product and by geography can be seen in the table below. Product mix and increased wallet share are driving this growth in revenues, with structured solutions and online platform revenues both exceeding management expectations. Forward contracts represented an increased portion of core revenue in the half at 57% (HY22: 50%) - options excluded. Our first overseas office (the Netherlands) has performed well in the half, exceeding expectations and now making a meaningful contribution to Group revenue - HY23: £0.8m (HY22: £0.2m).

Revenue by product
	UK	ROW	Total
	£m	£m	£m
6 months to 30 Sept 2022
Spot	10.5	0.2	10.7
Forwards and other products	16.1	0.6	16.7
	26.6	0.8	27.4
6 months to 30 Sept 2021
Spot	7.3	-	7.3
Forwards and other products	8.2	0.2	8.4
	15.5	0.2	15.7

The total number of corporates traded in HY23 was 1,393 versus 1,241 in HY22, an increase of 12%.

Costs

Overall, costs are in line with expectations and include a credit valuation adjustment provision of £0.9m reflecting the current economic climate.  Our investment in people, technology and international expansion continue at pace and in line with expectation.

Administrative expenses include variable costs of £8.2m which are driven by revenue volumes.

Investment in people is in line with plan with 20 new hires in the six-month period. Average headcount in the period totalled 107 (excluding directors and LLP Partners) compared to 69 in the prior period. The front office/back office proportional split was 60% front office, 40% back office (prior period 61%/39%). Momentum continues regarding our investment in overseas expansion with key hires made in addition to building out appropriate infrastructure and frameworks.  Consultancy and set up fees for the overseas operations is included in non-adjusted expenditure and is targeted towards items such as our recently awarded e-money licence in the Netherlands.

The technology investment continues to deliver with the online platform ahead of schedule and exceeding anticipated return on investment.  Seven new technology hires have been made in the period in support of bringing technology in house. Technology development costs are amortised in line with our capitalisation policy over a three-year period.

Technology Investment
	HY23		HY22
	£m		£m
In-house	0.2		-
External	0.7		0.7
Total	0.9		0.7

Profitability

As previously indicated, there has been a planned decrease in operating margins in the half to 26.6% (HY22: 29.9%), reflecting the investment in our three strategic pillars. Adjusted operating profit for the half of £7.3m excludes £0.8m of non-adjusted expenditure to adjust for one-time non-recurring items relating to senior staff changes and set up of overseas operations in line with our accounting policies. The share-based payments charge of £0.1m is also excluded from adjusted operating profit.  Adjusted operating profit is presented in the income statement to provide a comparable view of performance year-over-year.

Consolidated Statement of Financial Position

Total assets increased by £119.8m or 123% since March 2022. The driving force has been an increase in derivative financial assets held of £71.3m. This is driven by a significant increase in trading activity, including timing of settlement of forward contracts. The impact on net assets of this increase has been mitigated by an increase in derivative financial liabilities of £69.3m. The Group holds corresponding liabilities as it operates as a riskless principal.

Another key driver for the increase in total assets has been the increase in other assets of £34.9m caused by an increase in collateral required by our counterparties, arising from the volatility experienced since March 2022 in GBP sterling. The increase in amounts required by counterparties was offset by an increase of £43.0m in collateral and variation margin collected from clients, represented by amounts payable to clients. As a result, net assets increased by £3.7m from 31 March 2022.

Cash and other assets totalled £93.7m at 30 September 2022, of which £42.1m of other assets represents collateral and margin held with financial counterparties and £67.9m is corresponding collateral and margin collected from and payable to clients, leaving a net cash position of £25.8m compared to £20.2m at 31 March 2022.  

Cash Flow

The Group's net cash position (total cash plus collateral held by institutional counterparties less amounts payable to clients) is £25.8m (March 22: £20.2m). The increase from 31 March 2022 is driven primarily by operating activities .

	30 Sept 2022		31 March 2022
	£m		£m
Cash at bank Collateral held by institutional counterparties	51.6 42.1		37.9 7.2
Less: amounts payable to clients	(67.9)		(24.9)
Net cash	25.8		20.2

Cash conversion
	HY23	HY22
	£m	£m
Revenue	27.4	15.7
Revenue (swap adjusted S/A) (A)	27.3	14.8
Less:
Revenue settling beyond 3 months S/A	(6.9)	(2.7)
Net short-term cash generation (B)	20.4	12.1
Short-term cash return (B/A)	75%	82%

The short-term cash return ratio has reduced due to clients taking out a greater proportion of longer term forward contracts, offset in part by structured solutions carrying the premium payable upfront.  Cash conversion excluding options is 72%.

  CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

		6 months to 30 September 2022 (unaudited)		6 months to 30 September 2021 (unaudited)
		£m		£m
Revenue		27.4		15.7
Cost of sales		(0.9)		(0.2)
Gross profit		26.5		15.5
Administrative expenses		(19.2)		(10.8)
Adjusted operating profit		7.3		4.7
Non-adjusted expenditure		(0.8)		(0.2)
Share-based payments charge		(0.1)		(0.1)
Operating profit		6.4		4.4
Finance Costs		(0.2)		(0.2)
Profit before taxation		6.2		4.2
Taxation		(1.1)		(0.9)
Profit and total comprehensive income for the period		5.1		3.3

CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 30 September 2022

	Notes	30 September 2022 (unaudited)		31 March 2022 (audited)
		£m		£m
Non-current assets
Intangible assets		2.4		2.2
Property, plant and equipment	8	7.7		8.3
Derivative financial assets	6	14.1		3.1
Total non-current assets		24.2		13.6
Current assets
Trade and other receivables	6	0.9		0.6
Cash and cash equivalents	7	51.6		37.9
Other assets	7	42.1		7.2
Derivative financial assets	6	98.3		38.0
Total current assets		192.9		83.7
Current liabilities
Trade and other payables	9	(81.0)		(34.2)
Derivative financial liabilities	9	(82.9)		(21.6)
Total current liabilities		(163.9)		(55.8)
Non-current liabilities
Trade and other payables	9	(6.0)		(6.0)
Derivative financial liabilities	9	(10.3)		(2.3)
Total non-current liabilities		(16.3)		(8.3)
Net assets		36.9		33.2
	Notes	30 September 2022 (unaudited)	31 March 2022                   (audited)
Equity		£m		£m
Share capital	10	0.1		0.1
Share premium account		12.7		12.7
Share option reserve		0.5		0.4
Merger reserve		4.5		4.5
Retained earnings		19.1		15.5
Total equity		36.9		33.2

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the period ended 30 September 2022

	Share capital		Share premium			Share option reserve		Merger reserve		Retained earnings		Total equity
	£m		£m			£m		£m		£m		£m
Balance as at 31 March 2021 (audited)	0.1		12.7			0.2		4.5		11.2		28.7
Profit and total comprehensive income for the period	-		-			-		-		3.3		3.3
Transactions with shareholders
Dividends paid	-		-			-		-		(2.2)		(2.2)
Share-based payments	-		-			0.1		-		-		0.1
Balance as at 30 September 2021 (unaudited)	0.1		12.7			0.3		4.5		12.3		29.9
Balance as at 31 March 2022 (audited)	0.1		12.7			0.4		4.5		15.5		33.2
Profit and total comprehensive income for the period	-		-			-		-		5.1		5.1
Transactions with shareholders
Dividends paid	-		-			-		-		(1.5)		(1.5)
Share-based payments	-		-			0.1		-		-		0.1
Balance as at 30 September 2022 (unaudited)	0.1		12.7			0.5		4.5		19.1		36.9

CONSOLIDATED STATEMENT OF CASH FLOWS

	6 months to 30 September 2022 (unaudited)		6 months to 30 September 2021 (unaudited)
	£m		£m
Profit before taxation	6.2		4.2
Taxation paid	(0.9)		-
Net finance expense	0.2		0.2
Depreciation of right of use assets	0.4		0.3
Amortisation of intangible assets	0.7		0.6
Depreciation of property, plant and equipment	0.2		0.3
Share-based payment charge	0.1		0.1
(Increase)/decrease in receivables	(0.3)		1.5
Increase in payables	46.7		3.0
(Increase) in derivative financial assets	(71.3)		(1.5)
Increase/(decrease) in derivative financial liabilities	69.3		(0.3)
(Increase) in other assets	(34.9)		-
Net cash generated from operating activities	16.4		8.4
Investing activities
Payments to acquire property, plant and equipment	-		(0.2)
Payments to acquire intangible fixed assets	(0.9)		(0.7)
Net cash used in investing activities	(0.9)		(0.9)
Financing activities
Payments made in relation to lease liabilities	(0.3)		-
Dividends paid	(1.5)		(2.2)
Net cash used in financing activities	(1.8)		(2.2)
Net increase in cash and cash equivalents	13.7		5.3
Cash and cash equivalents at the beginning of the period	37.9		38.4
Cash and cash equivalents at end of the period	51.6		43.7

1          General information

Argentex Group PLC ("the Company") is a public limited company, limited by shares, incorporated and domiciled in England and Wales. The address of the registered office of the Company is 25 Argyll Street, London, W1F 7TU. The Company's shares are listed on AIM, the London Stock Exchange's market for small and medium size growth companies. The Company is the ultimate parent company of the Group into which the results of its subsidiaries are consolidated.

2          Basis of preparation

The consolidated financial information contained within these financial statements is unaudited and does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.

While the financial figures included in this interim report have been prepared in accordance with IFRS applicable to interim periods, this interim report does not contain sufficient information to constitute an interim financial report as defined in IAS 34. Financial information for the year ended 31 March 2022 has been extracted from the audited financial statements for that year.

The financial statements have been prepared using the measurement bases specified by IFRS for each type of asset, liability, or expense. The accounting policies applied in preparation of these interim financial statements are consistent with the basis that was adopted for the preparation of the full year accounts for the year ended 31 March 2022 and will be adopted for the Group's next audited accounts for the 9 months ended 31 December 2022.

Statutory accounts for the year ended 31 March 2022 have been reported on by the Company's Independent Auditor and have been delivered to the Registrar of Companies. The Independent Auditor's Report on the Annual Report and Financial Statements for 2022 was unqualified and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

These interim financial statements are prepared on a going concern basis as the Directors have satisfied themselves that, at the time of approving these interim financial statements, the Group has adequate resources to continue in operational existence for at least the next twelve months from the date of this report.

3          Accounting policies

The accounting policies adopted in these interim financial statements are identical to the those adopted in the Group's most recent annual financial statements for the year ended 31 March 2022, which are available from the Registrar of Companies and www.argentex.com/investor-relations .

4          Earnings per share

The Group calculates basic earnings to be net profit attributable to equity shareholders for the period. The Group also calculates an adjusted earnings figure, which excludes the effects of share-based payments, and non-adjusted expenditure (net of a tax adjustment). The calculation of diluted earnings per share assumes conversion of all potentially dilutive ordinary shares, all of which arise from share options.

	Six months to	Six months to
	30 Sept 2022	30 Sept 2021
Basic earnings per share	4.5p	3.0p
Diluted earnings per share	4.5p	3.0p
Adjusted - basic	5.1p	3.2p
Adjusted - diluted	5.1p	3.2p

The calculation of basic and diluted earnings per share is based on the following number of shares:

	Six months to	Six months to
	30 Sept 2022	30 Sept 2021
	m	m
Basic weighted average shares	113.2	113.2
Contingently issuable shares	0.1	0.1
Diluted weighted average shares	113.3	113.3

The earnings used in the calculation of basic, diluted and adjusted earnings per share are set out below:

	Six months to	Six months to
	30 Sept 2022	30 Sept 2021
	£m	£m
Earnings - basic and diluted	5.1	3.3
Non-adjusted expenditure	0.8	0.2
Share-based payments	0.1	0.1
Tax impact	(0.2)	-
Earnings-adjusted	5.8	3.6

5          Dividends

	6 months to 30 September 2022 (unaudited)	6 months to 30 September 2021 (unaudited)	6 months to 30 September 2022 (unaudited)	6 months to 30 September 2021 (unaudited)
	Pence per share	Pence per share	£m	£m
Final dividend recommended by Directors at previous year end	1.25	2.0	1.5	2.3
	1.25	2.0	1.5	2.3

The final dividend was declared in July 2022 in respect of the results for the year ended 31 March 2022 and paid in respect of the ordinary shares in issue of £0.0001 each.

In the previous financial year, an interim dividend of 0.75p per share, totalling £0.8m, was declared and paid. No interim dividend is proposed for the current financial year.

6          Trade and other receivables

	30 September 2022 (unaudited)	31 March 2022 (audited)
Non-current	£m	£m
Derivative financial assets at fair value	14.1	3.1
Current
Derivative financial assets at fair value	98.3	38.0
Other debtors	0.1	0.1
Prepayments	0.8	0.5
Trade and other receivables	0.9	0.6

7          Cash and cash equivalents

	30 September 2022 (unaudited)	31 March 2022 (audited)
	£m	£m
Cash and cash equivalents
Cash held at banks	51.6	37.9

Included within cash and cash equivalents are client funds relating to margins received and client balances payable (see note 9). Client balances held as electronic money in accordance with the Electronic Money Regulations 2011 are held in accounts segregated from the firm's own bank balance.

The Directors consider that the carrying amount of these assets is a reasonable approximation of their fair value. Cash is held at authorised credit institutions and non-bank financial institutions with robust credit ratings (where published) and sound regulatory capital resources.

Other assets of £42.1m (March 22: £7.2m) is made up of collateral with banking and brokerage counterparties. Client margins received and disclosed within client balances payable are used to service margin calls with counterparties.

8          Property, plant and equipment

	Leasehold improvements	Right of use asset	Office equipment	Computer equipment	Total
Cost	£m	£m	£m	£m	£m
At 1 April 2022	1.8	7.3	0.8	0.7	10.6
Additions	-	-	-	-	-
Disposals	-	-	-	-	-
At 30 September 2022	1.8	7.3	0.8	0.7	10.6
Depreciation
At 1 April 2022	0.3	1.5	0.1	0.4	2.3
Charge for the period	0.1	0.4	0.1	-	0.6
Disposals	-	-	-	-	-
At 30 September 2022	0.4	1.9	0.2	0.4	2.9
Net Book Value
At 30 September 2022	1.4	5.4	0.6	0.3	7.7
At 31 March 2022	1.5	5.8	0.7	0.3	8.3

9          Trade and other payables

	30 September 2022 (unaudited)	31 March 2022 (audited)
	£m	£m
Non-current
Derivative financial liabilities at fair value	10.3	2.3
Lease liabilities	5.8	5.8
Provisions	0.2	0.2
Trade and other payables	6.0	6.0
Current
Derivative financial liabilities at fair value	82.9	21.6
Amounts due to members and former members of Argentex LLP	2.3	2.8
Amounts payable to clients	67.9	24.9
Other creditors	-	0.1
Accruals	7.4	3.4
Other taxation and social security	0.5	0.3
Lease liability	0.8	0.8
Corporation tax	2.1	1.9
Trade and other payables	81.0	34.2

 

10       Share capital

	Ordinary			Management		Nominal
	shares			shares		value
Allotted and paid up	No. (m)			No. (m)
Ordinary shares of £0.0001 each	113.2			-		11,321
Management shares issued of £0.0025 each	-			23.6		58,974
At 30 September 2022	113.2			23.6		70,295

There were no changes to share capital during the period from 1 April 2022 to 30 September 2022 .

 

END

 

 

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