Trading Update

Argentex Group PLC

21 January 2025

 

21 January 2025

Argentex Group PLC

("Argentex" or the "Group")

Trading update

Full year revenues ahead of expectations; margins in line

Revenue diversification plans on track

Argentex Group PLC (AIM: AGFX), the global specialist in currency risk management and alternative banking, today announces a trading update for the 12-month period ended 31 December 2024.

Highlights

·      Full year revenues* marginally higher than FY23 and ahead of market expectation

·      Full year EBITDA margin* in line with expectation

·      Australian and Dubai licences granted in year and regions now fully operational

·      Argentex Global Platform build progressing to plan

·      Leadership strengthened across the business

Trading Update

The Board expects to report FY24 revenues of approximately £50.3m*, marginally ahead of FY23 (£49.9m), and ahead of our mid £40 millions original expectations for the year. Whilst the adverse market conditions experienced during 2023 in the core FX business continued into the first quarter of 2024, trading momentum improved subsequently, with the business returning to year on year growth in the second half and revenues in H2 exceeding those generated in H1.

The Group continues to make good progress across its core areas of strategic focus, in particular diversifying its revenue streams through entering additional geographies and launching new products and services. Notwithstanding this continued investment into its strategic pillars the Board is confident that it will meet the original low single digit EBITDA margin expectation for the year.

Strong Momentum in Overseas Expansion

We were delighted to be granted licences to operate in both Australia and Dubai during the year, which was a key strategic priority and will significantly increase our addressable market. Both offices are now fully staffed and operational and should contribute to revenues this year.

In Australia, we were granted an Australian Financial Services Licence (AFSL) in May 2024. The licence, granted by the Australian Securities and Investments Commission (ASIC), allows Argentex's Australian entity (Argentex Pty Ltd) to offer bespoke currency risk management solutions and global accounts to wholesale clients across Australia.

In Dubai, we have announced the launch of Argentex (DIFC) Ltd, a fully licensed subsidiary regulated by the Dubai Financial Services Authority (DFSA). Led by our UAE Managing Director Jamil Khammu, we have a highly experienced team in place to serve sophisticated corporate and institutional clients across the DIFC and broader UAE market. Argentex (DIFC) Ltd is fully regulated under a Category 3A DFSA licence, enabling the team to offer comprehensive FX and payment services.

Product Diversification on Track

We continue to diversify into the broader payments and alternative banking markets, which will bring additional and more visible revenue streams; increase the Group's overall addressable market and improve customer retention.

To support this initiative, we made a number of key technology hires in the period to help re-platform the business onto one Argentex Global Platform ("AGP") and roll out a new suite of services. In particular, Tim Rudman has joined as Chief Operating Officer, alongside a number of other key hires. Tim and his team have developed a detailed product and technology roadmap with a key focus on automation, efficiency and improving the customer experience via a self-serve model. Progress to date has been excellent: milestones have been met ahead of schedule and we remain on track to launch new services in H2 2025. 

Jim Ormonde, CEO, said:

"We have made substantial strategic and operational progress in 2024 with a focus on revenue diversification through geographical expansion and the launch of new products and services, whilst making the business more efficient and resilient from an operational perspective. We have added significant expertise across the business including permanent appointments to our executive team and new experienced leadership within alternative banking, operations and technology. It has been a busy year and I am delighted with the progress made. We have invested for growth in 2024 and have made major changes to the business. With a strong team now in place, and a clear roadmap for the future, I am excited about the prospects for 2025 as multiple new profit generating revenue streams commence."

*FY24 results are yet to be subject to statutory audit.

For further information, please contact:

Argentex Group PLC

Jim Ormonde - Chief Executive Officer

Guy Rudolph - Chief Financial Officer

[e-mail]

Teneo (Financial PR)

James Macey-White / Victoria Boxall / Rashida Salemahomed

[e-mail], 020 7260 2700

Singer Capital Markets (Nominated Adviser and Broker)

Tom Salvesen / James Maxwell / Asha Chotai

020 7496 3000

This announcement contains inside information for the purposes of the UK version of the Market Abuse Regulation ("MAR") which forms part of UK law by virtue of the European Union (Withdrawal) Act 2018; as amended.  Upon publication of this announcement, the inside information is now considered to be in the public domain for the purposes of MAR.

About Argentex

Argentex (AIM: AGFX) is a global expert in currency risk management and alternative banking. Established in 2012 and headquartered in London, Argentex listed on London's AIM market in mid-2019 and has since added operations in Amsterdam, Dubai and Australia.

 

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