REG - Argentex Group PLC - Financial Position & Suspension of trading

ArgentexAnnouncement

22/04/2025 07:20

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RNS Number : 6427F  Argentex Group PLC  22 April 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC
LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"), AND IS
DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF
MAR.

 

22 April 2025

 

Argentex Group PLC

("Argentex" or the "Company")

 

Update on Financial Position

 

Suspension of trading on AIM

 

Argentex Group PLC (AIM: AGFX), the global specialist in currency risk
management, provides the following update regarding its financial position.

 

Following the Company's recently published FY24 Annual Results on 2 April 2025
and subsequent associated results investor roadshow, Argentex has been exposed
to significant volatility in foreign exchange rates, particularly in relation
to the rapid devaluing of the US Dollar against other major benchmark
currencies which has been precipitated by the various recent announcements
from President Trump regarding tariff policies and US government spending
cuts.

 

As a result, the Company has experienced a rapid and significant impact on its
near term liquidity position, driven by, inter alia, margin calls linked to
its FX forward and options books.  The Company has taken a number of steps to
preserve cash and increase the collateral received from its counterparties. In
addition, the Company is considering a number of options for the business.
The Company also has the support of its principal liquidity provider and is in
discussions with them regarding ways to further strengthen its liquidity
position given the ongoing macro uncertainty, noting the likelihood of
continued volatility in the currency markets and the associated exposure
presented within the Company's FX forward and options books. In the event that
the volatility in currency markets worsens materially then the Company's
financial liquidity position, if not strengthened in the near term, would be
significantly stretched.

 

In light of these developments and the current material uncertainty, the
Company also announces that it has requested a suspension of trading in the
Company's ordinary shares on AIM with effect from 07.30 a.m. today.

 

 

For further information, please contact:

 

Argentex Group PLC

 

Jim Ormonde - Chief Executive Officer

Guy Rudolph - Chief Financial Officer

investorrelations@argentex.com (mailto:investorrelations@argentex.com)

 

Teneo (Financial PR)

 

James Macey-White / Victoria Boxall / Riann Cato

argentex@teneo.com (mailto:argentex@teneo.com) , 020 7260 2700

 

Singer Capital Markets (Financial Adviser, Nominated Adviser and Broker)

 

Tom Salvesen / James Maxwell / James Todd

020 7496 3000

 

 

 

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