REG - Argentex Group PLC - Trading Update

ArgentexAnnouncement

21/01/2025 07:00

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RNS Number : 0148U  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

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

 

Teneo (Financial PR)

James Macey-White / Victoria Boxall / Rashida Salemahomed

argentex@teneo.com (mailto:argentex@teneo.com) , 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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