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
Teneo (Financial PR)
James Macey-White / Victoria Boxall /
Rashida Salemahomed
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.
