17th Sep 2019 12:13
(Alliance News) - Aquis Exchange PLC on Tuesday reported a narrowed first-half loss but warned political and economic uncertainty could impact the market in the short to medium-term.
In the six months to June 30, the exchange services provider more than doubled revenue to GBP3.4 million from GBP1.3 million. Its pretax loss narrowed to GBP621,000 from GBP3.2 million.
During the interim, Aquis Exchange's market share grew to 4.8% from 3.8% at the end of 2018. Its number of traders rose to 29 from 27. Members also increased their trading volumes, Aquis said.
The company added: "This is particularly pleasing against the backdrop of overall lower trading volumes, which decreased 16% in the first half of 2019 versus the first half of 2018."
The company, which listed on AIM in June 2018, became the first multilateral trading facility to achieve dual-trading in Europe. Its French subsidiary Aquis Exchange Europe received approval from French authorities to operate in Paris, ensuring the company can trade in Europe post-Brexit.
In July, the company announced it will acquire NEX Exchange Ltd from US futures exchanges operator CME Group Inc for GBP1 plus an additional working capital of GBP2.7 million. Completion of the acquisition is expected to occur in the autumn, subject to UK Financial Conduct Authority approval.
Chief Executive Alasdair Haynes said: "Growth is being driven by our existing members increasing their trading volumes, new members joining and increased technology licensing revenue. Following the approval in January, we became the first UK MTF to be 'Brexit-ready', underlining the agility of our business. We were delighted to announce in July our agreement to acquire the NEX Exchange, marking our intention to enter the primary listings market, taking us another significant step forward towards achieving our ambition to become the leading exchange services group in Europe.
"While we anticipate the current political and economic uncertainty will continue to impact market participants in the short to medium term, we have proven we have the right model, team, technology and vision to deliver shareholder value and look to the future with confidence."
Despite macro-economic uncertainty, Aquis said it is trading in line with full-year market expectations.
The company added: "Brexit uncertainty and other global macro-economic factors continue to weigh on decision-making, and it is clear that it is impacting market volumes as well as putting pressure on our industry."
Shares in Aquis were 3.4% higher at 491.00 pence each in London on Tuesday afternoon.
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