Full Year Results Year Ending 31st March 2020

Argentex Group PLC

("Argentex" or the "Group")

Full year results for the period ending 31 March 2020

Excellent financial and operational performance supported by strong client demand and increased trading activity

Argentex Group PLC (AIM: AGFX), the provider of foreign exchange services to institutions, corporates and high net worth private individuals, is pleased to announce its first full year results as a public company, for the year ended 31 March 2020.

Financial Highlights

·    Foreign exchange ("FX") turnover of £12.1bn up 12% (2019: £10.8bn) 

·    Group revenue increased 32.3% to £28.9m (2019: £21.9m)

·    Underlying operating profit increased 28% to £12.5m (2019: £9.7m)

·    Significant increase in underlying earnings[1] to £10m (2019: £7.8m)

·    Earnings per share 7.1p (basic) and 8.8p (underlying)

·    In line with its stated dividend policy, the Group will be paying a maiden dividend of 2p per share


Operational Highlights

·    Revenue growth driven by continued strong client demand and increased client activity
- 380 new corporate clients traded during the period
- 1,212 corporates actively traded, up 12%
- Client demand maintained during recent sustained period of volatility

·    Continued diversification of client base
- Top 20 clients represent 41% of revenue

·    Business mix remains consistent with historic trends
- 95% of the FX portfolio is comprised of dollar, sterling or euro trades
- Continued equal revenue composition between spot and forward
- Strong take up of FX Options book now contributing material revenues

·    Executed effective Covid 19 response
- Entire business transitioned smoothly to working from home within 24 hours
- Robust business model and risk management systems ensured continuity of client service during the sustained, unprecedented market conditions

·    Online trading platform launched in March, in response to client demand to execute cross border trades instantly

Investing for Growth

·    Amsterdam sales office opened in March as part of the Group's international growth ambitions

·    Signed lease on new 12,500ft2 London-based headquarters allowing for further headcount growth

·    Continued to attract leading talent across the business with a focus on maintaining robust approach to compliance and increasing breadth of sales team to accelerate growth

Outlook

·    Positive long-term growth prospects despite the uncertain macro outlook

·    New premises, increased headcount, leading technology and a strong capital position support growth ambitions

 


[1] Underlying earnings excludes the effects of share based payments, non-recurring costs including costs associated with the IPO and profits earned and fully distributed to former equity holders prior to the IPO, adjusted for taxation.

 

 

Carl Jani, Co-Chief Executive Officer, commented:

"It has been an excellent first year trading as a listed business in which we have continued to generate double digit revenue and profit growth supported by an expanding, increasingly active and high-quality client base.

 

"When joining the London Stock Exchange's AIM in June 2019, we had a clear commitment to our growth strategy and proven business model and since then, we are proud to have gone from strength to strength while considerably increasing the scale and breadth of our business."

 

Harry Adams, Co-Chief Executive Officer, stated:

 

"The increased capital strength and enhanced brand recognition that the IPO has afforded us, has positioned the business on firm foundations for our first year of trading and we're delighted with the financial and operational momentum we have achieved.

 

 "Our growth trajectory has been set against some of the most unprecedented markets recently recorded and our thoughts are with all of those impacted by the COVID-19 pandemic. We are proud of the spirit, collegiality and resilience shown by our people in ensuring a continuity of service for our growing, increasingly active and diversified client base. All the while, the investment in our proprietary systems and technology has served us well as the client demand continued during the recent sustained period of extreme volatility."

 

Lord Digby Jones, Non-Executive Chairman, said:

"After a strong start as a listed company we remain confident of the Group's long-term prospects despite the uncertain macro outlook. Our strong business model, unwavering strategy and expertise in a sector that will continue to be vital for clients, will help the Group continue to build on its track record.

"I'm delighted to declare a proposed and maiden dividend of 2p per share, in line with the Group's distribution policy of paying shareholders 30% of retained profit after tax, adjusted for any exceptional items."

For further information please contact:

Argentex Group PLC

Carl Jani, Harry Adams - Co-CEOs

(Via FTI Consulting)

 

FTI Consulting (Financial PR)

Ed Berry

Telephone: 0203 727 1046

argentex@fticonsulting.com 

 

Numis Securities Limited (Nominated Adviser and Broker)

Stephen Westgate, Charlie Farquhar, Laura White, Hugo Rubinstein
Telephone: +44 (0) 20 7260 1000

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Analyst briefing

Due to restrictions resulting from COVID-19, a meeting for analysts will be held virtually at 9.30am today, 3rd August 2020. Analysts wishing to attend this event can register via email at argentex@fticonsulting.com.  Argentex's Full Year 2020 results announcement will also be available today on the Group's website at www.argentex.com.