REG - Argentex Group PLC - Trading Update

ArgentexAnnouncement

12/04/2022 07:00

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RNS Number : 0337I  Argentex Group PLC  12 April 2022

12 April 2022

Argentex Group PLC

Trading Update

Argentex Group PLC, ("Argentex" or "the Group"), the provider of foreign
exchange services to institutions, corporates and high net worth private
individuals, today issues a trading update for the 12 months to 31 March 2022.

Highlights:

 * Strong growth in Group revenue of 23% to £34.5m (2021: £28.1m) with expected
underlying* operating profit margins broadly in line with prior year (2021:
30.9%)

 * Continued strong client demand with 528 newly traded corporates (2021:499) and
the total number of corporates trading in the year reached 1,624 (2021: 1,385)

 * Netherlands office delivered half on half revenue growth since inception and
the Australian operation set to launch in the current financial year

 * New technology-enabled trading and client service platform launched, the first
in a suite of upcoming developments underpinned by a new technology strategy

 * David Christie appointed as Chief Operating Officer and David Winney as Global
Chief Compliance and Risk Officer

 * Group remains well capitalised, debt free and cash generative

 * Singer Capital Markets appointed sole Nominated Adviser and sole Broker

 

*underlying operating profit margin excludes one off costs in relation to any
restructure and set up of overseas offices in addition to non operational
costs such as finance charges and share option expense

Argentex expects to report revenues of £34.5 million for the 12 months to 31
March 2022, representing growth of 23% year-on-year (2021: £28.1 million).
This growth was driven by the Group's targeted investment in strengthening its
team, broadening its geographic reach and taking more market share. In
addition, the Group has invested to evolve its technology proposition in order
to drive efficiencies and meet the growing demand from new and existing
clients for its growing list of products and services. Corporate clients
trading in the year totalled 1,624 (2021: 1,385) with 528 new corporate
clients trading over the period (2021:499).

Against an uncertain and volatile geopolitical backdrop, the Group continued
to maintain its prudent approach to risk management, focusing on the quality
and diversification of its book, remaining debt free, cash generative and
profitable. Our portfolio is matched with blue-chip institutional
counterparties and remains heavily weighted to major currencies, with over 83%
allocated to GBP, EUR and USD. The Group has no direct currency exposure to
the Russian Rouble and continues to closely monitor the wider potential
impacts of the Russia / Ukraine crisis.

Future growth drivers

Shaping the growth strategy and building on the existing foundations laid
since IPO, the Group has continued to invest to ensure it develops to meet its
client needs and drive shareholder value. The coming financial year represents
an exciting chapter in Argentex' growth journey. Of particular note:

i)          International Growth

The Group's newly formed Dutch office, which is the European hub of Argentex,
continues to progress in line with expectations, delivering positive half on
half revenue growth during the period, helped by a doubling of front-office
headcount, which underpins its growing strategic importance.

Furthermore, the Company's planned entry into the Australian market through a
Sydney office in the current financial year to 31 March 2023 is at an advanced
stage and remains a key objective in maximising growth opportunities outside
its core UK market.

ii)         Technology

As part of its commitment to continually deliver the best outcomes and
experience for clients, Argentex has launched a new technology-enabled trading
and client service platform as part of a new technology strategy.

Further enhancing the in-person service-led approach which the Group has
championed, the client platform has been significantly optimised to improve
the usability and customer experience online.  It will enable our clients to
tailor the service levels they require as well as increasing functionality and
driving real time engagement. This optimised platform will be supported by a
mobile responsive interface, providing further flexibility to the Group's
client base and enable the Group to take a greater share of client wallet. It
will seek to capture new customers, drive basket size and gain further
international reach. The platform has been rolled out to a subset of existing
Argentex customers, with positive feedback and results.  In the current
financial year, the new trading and client service platform will be made
available to all customers.

After our recent phase of investment, this is the first in a planned suite of
proprietary tech-enabled products and a step forward in the Company's journey
towards becoming a technology-led financial services provider, with improved
client accessibility, experience and scope to broaden our product offer. The
continued digitisation of the platform will support the Group's aims to create
a more efficient and scalable platform with diversified revenues to help drive
profitable growth.

iii)        Investment in People

The Group is pleased to announce the appointment of two new executive
(non-Board) leadership team members. David Christie joins as Chief Operating
Officer and David Winney joins as Global Chief Compliance and Risk Officer.

David Christie joins Argentex with over 25 years' experience in technology in
financial services, with over 15 years' experience in the FX and international
payments space where he was formerly COO of XE and Ria Financial, one of the
largest non-bank financial institutions cross border companies globally. He
joins Argentex with an extensive experience and track record of successful
"full stack" digital transformation, product delivery and strategic program
execution including acquisitions and scaling business through effective use of
technology.

David Winney's career spans 30 years in financial services including managing
global teams at financial institutions such as HSBC, Citigroup and Bank of
America as well as in leading foreign exchange and payment services firms such
as AFEX and Monex Europe. David has served as a board member of payment and
investment firms in several jurisdictions as well as leading successful
operations, risk and control functions in addition to his extensive compliance
experience. David is a Fellow of the International Compliance Association and
a Chartered Member of the CISI.

Both David Christie and David Winney will be based in our global headquarters
in London.

In addition, Argentex continues to invest in talent across the Group, having
made 31 hires in the reported period bringing total current Group headcount to
100. In addition to 19 front office hires, it has increased bench strength
across the support functions in order to enable the business to scale
efficiently and maintain a robust approach to risk management.

Change of Nominated Adviser and Broker

The Board of Directors today announces the appointment of Singer Capital
Markets as the Company's Nominated Adviser and Sole Broker, effective
immediately.

Harry Adams, CEO, commented:

"In FY 2022, we reset the business, evolved the strategy and invigorated the
growth potential of the Group. The momentum behind those long-term initiatives
is starting to bear fruit, as reflected in our robust financial performance.

"Our executive leadership team has been further bolstered by the appointments
of both David Christie and David Winney.  David Christie joins as Chief
Operating Officer who is well positioned to further the strong progress made
during the period in building out our technology-led proposition. The
expertise brought by David Winney to the Global Chief Compliance and Risk
Officer role will be critical to our success as we expand our product offering
and geographic footprint moving forward."

"As we embark on the next and exciting stage of our growth journey the
business has never been in better shape and I look forward to FY 2023 and the
significant market opportunities that lie ahead with confidence."

 

-ENDS-

For further information please contact:

Harry Adams - CEO

Jo Stent - CFO

(Via FTI Consulting)

FTI Consulting (Financial PR)

Ed Berry, Ambrose Fullalove

Telephone: 07703 330 199

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

Singer Capital Markets (Nominated Adviser and Broker)

Tom Salvesen, James Maxwell, Justin McKeegan

Telephone: 020 7496 3000

 

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
EU REGULATION 596/2014, AS AMENDED (AS IT FORMS PART OF UK DOMESTIC LAW BY
VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018).

 

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