19th Dec 2019 10:32
(Alliance News) - Aquis Exchange PLC expects regulatory approval for its purchase of the NEX market early in 2020, it said on Thursday.
London-based exchange services firm Aquis agreed back in July 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, subject to approval from the UK Financial Conduct Authority. This is now not expected until early next year.
NEX has 86 companies listed on its primary market, as well as 670 on the secondary market.
NEX delivered revenue of GBP1.5 million but had losses of GBP2.1 million in the year to March 2018. Aquis said back in July that a number of cutbacks can be made in the business to offset the losses.
Turning to Aquis's own trading, it expects results for 2019 to meet market expectations despite a difficult market environment.
It sees 2019 revenue rising around 70% year-on-year, and it will approach breakeven at the earnings before interest, tax, depreciation, and amortisation level. Market share has risen, it added, showing its subscription-based model is succeeding.
From 2020, Aquis will be investing a further GBP1 million a year given the greater clarity in the UK following last week's general election. In 2020, Aquis expects further strong revenue growth and positive Ebitda.
Shares were 6.4% lower on Thursday morning in London at a price of 412.00 pence each.
By George Collard; [email protected]
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