16th Apr 2020 13:00
(Alliance News) - Aquis Exchange PLC on Thursday reported a narrowed annual loss, as the exchange services firm believes its technology can handle the Covid-19 pandemic.
Shares in the stock exchange operator were 8.9% higher in London on Thursday at 365.00 pence each.
In 2019, Aquis recorded a pretax loss of GBP1.1 million, narrowed from the GBP3.7 million loss seen in 2018.
Revenue was up 73% year-on-year to GBP6.9 million in 2019 from GBP4.0 million in 2018.
The growth was driven by a 70% rise in subscription fees to GBP5.3 million. Licence fees were up 72% year on year to GBP1.3 million, while data vendor fees more than doubled to GBP337,632.
Administrative expenses were also up, rising to GBP7.3 million from GBP6.5 million.
Chief Executive Alasdair Haynes said: "Against a challenging market backdrop, Aquis delivered substantial operational and financial progress during 2019. It is very pleasing to see our adjusted Ebitda figure reaching near break-even, as revenues continue to grow across all business divisions and the Market at Close leads the field among closing auction alternatives in the market."
The company's market share of pan-European continuous trading increased to 4.62% during the fourth quarter, compared to 3.8% the year prior.
Market at Close order type gained "significant traction", Aquis said, with its the market share of total pan-European closing auctions rising to 3.52% in December from 0.36% in August.
Haynes continued: "Last month we were delighted to complete our acquisition of NEX Exchange, now renamed the Aquis Stock Exchange, and to list our first company on to it a few weeks later. Developing this market into a future-facing, disruptive home for quality growth businesses will be a key focus for us during the year ahead."
Aquis agreed back in July of last year to buy NEX Exchange Ltd off US futures exchange operator CME Group Inc, for a nominal sum of GBP1 plus working capital of GBP2.7 million. The company had originally expected the deal to complete during the autumn.
NEX has 86 companies listed on its primary market, as well as 670 on the secondary market.
Aquis ended 2019 with GBP11.0 million in cash and cash equivalents, and looking ahead, the company believes it is in a position to withstand the Covid-19 pandemic.
"There is currently significant macro-economic uncertainty given the Covid-19 outbreak, however I believe that our strong team and technology platform should enable us to overcome the challenges created by the pandemic. Our technology systems are currently dealing efficiently with the higher market volumes caused by increased volatility in trading and are effectively operating remotely. Although the longer-term economic impact is harder now to predict, such that it is difficult to forecast the effect on the broader group for the time being, I remain confident in our unique proposition and ready to take the broader group to the next level of operational, financial and strategic success," Haynes added.
By Paul McGowan; [email protected]
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