Argentex's CEO, CFO & COO discuss today's results

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12th Apr '23 by Paul Hill

30 comments 1181 reads

In this insightful conversation, CEO Harry Adams, CFO Jo Stent and COO David Christie take me through Argentex Group PLC’s impressive 2022 results, strong start to 2023 & longer term growth plans.

Key USPs & what's been driving the top line? 00:00
Financial highlights. 03:10
Progress wrt scaling the technology platform. 06:25
International expansion strategy. 10:05
Cash generation & dividends. 14:10
Exciting growth trajectory. 16:30
Future newsflow. 22:00

Likewise, watch out for the AGM on 21st June.

Disclosure: I own shares in Argentex

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About the Author

Paul Hill

Premium Member

30 comments

davidjhill

13th Apr '23

Thanks BnB - and you too.

Paul Hill

13th Apr '23

One thing to note BnB & David - is that house broker Singers reckon (re conservative forecasts) there's a good chance of "upgrades as the year progresses".

Meaning valuation multiples could become even cheaper if #AGFX stock doesn't rise

BnB

13th Apr '23

One thing I've just noticed (flush with my proceeds from the sale of Network International Holdings (LON:NETW) - see today's SCVR) is the constantly falling returns on capital and operating margins over the past few years and into the forecasts. Do either of you guys have a reassuring explanation? Thanks.

Paul Hill

13th Apr '23

Clients demand driven investment in growth - eg people, technology, overseas expansion, etc

davidjhill

13th Apr '23

Op margins approx 24.5% (down a bit over last couple of years due to increased investment). CFO confirmed on call yesterday margins rising and medium term expect to be back around 30%.

BnB

13th Apr '23

Thanks both. I’m weighing AGFX against EQLS as a follow up to ALPH, my largest UK position. I am however veering towards the advanced technology stack of EQLS and the greater evidence of vision and strategy. Management are more confidence-inspiring as well - in my opinion.

davidjhill

13th Apr '23

I like (and own both) BnB. They operate in different areas of the market and client target demographic has little overlap. But I can't argue with rationale for Equals (LON:EQLS) either. Both are mis-priced in my view, on similar ratings, which is why I own them I guess :) so ignore me talking me own book!!!

BnB

13th Apr '23

EQLS tipped in last weekend’s Small Cos Sharewatch as well.

Paul Hill

14th Apr '23

Keep up the great work David & BnB.

Personally I'm a long term investor & lean more towards GARP/tech stocks. Hence I own #AGFX, #FDP, #AOM, #ELCO , EYSY, $PFE, #ROG.SW & #EQLS.

Also looking to put more money to work over the next 3-6 months

BnB

14th Apr '23

ROG.SW

Hi Paul

We discussed Roche briefly on another of your threads and I was enthusiastic for the prospects of your investment on fundamentals. The technical team at my bank has just gone positive on the SMI of which Roche is the biggest component. Looks a well-timed purchase.

Bought a half position in Equals this morning, hoping to see justification for doubling up and a long term holding.

Paul Hill

14th Apr '23

Thanks BnB.

Anthony127

14th Apr '23

@Argentex (LON:AGFX) which I hold is refreshing in a qualitative sense because several of the Directors are very large shareholders in the company. Also there was considerable buying of the shares by the Directors last year. This tends to give the impression that the Directors are essentially taking the same risks as the shareholders.

Given the mutual interest and Paul's interviews; I get a sense of integrity from the Directors which is very welcome.

The 2022 update looked very good and I think investors have simply been misled by the change of year end and took no account of the 12 months comparison provided in the update. I think it would have been helpful if the TU had also included information on cash flow if only because Argentex is very strong in this respect.

davidjhill

14th Apr '23

Thanks - and you Paul. Like your interviews and general analysis. Always interesting.

Did you buy Supreme (LON:SUP) in the end? I hold but am underwater. Expect them to come back but going to have to be patient - poor purchase timing a while back.

Paul Hill

14th Apr '23

Thanks David - I haven't yet pulled the trigger but like #SUP

Paul Hill

14th Apr '23

Thanks BnB for the intel wrt Roche.

That said over the L/T, I hoping #EQLS will perform much better

davidjhill

18th Apr '23

Have to say though - Argentex (LON:AGFX) really isn't liked by the market. Despite the results it is down 10% and now trades on cash adjusted earnings of 8* which just seems odd.

Rusty2

18th Apr '23

Possible read across from Wise (LON:WISE) update today, which was disappointing.

davidjhill

18th Apr '23

yeah, suspect you are right but given they've literally only just reported, so we have up to date trading information, it's very knee jerk.

BnB

18th Apr '23

Could it be that, with higher quality competition, some just as good value, investors currently only see the name as a trading proposition? They bought the rumour and sold the news?

Paul Hill

18th Apr '23

AGFX is a cashed up recovery play. Totally mis-priced IMO

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Argentex's CEO, CFO & COO discuss today's results

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About the Author

Paul Hill

30 comments

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