18th Sep 2024 12:22
(Alliance News) - Argentex Group PLC on Wednesday set a more positive outlook for the second half of the year, despite swinging to a loss in the first.
Argentex Group is an international provider of foreign exchange services for institutions, corporates and high-net-worth private individuals.
For the six months ended June 30, the firm swung to a pretax loss of GBP1.7 million from profit of GBP4.8 million a year prior.
Earnings before interest, tax, depreciation and amortisation fell to GBP700,000 from GBP7.2 million. Basic losses per share came to 1.6 pence, from earnings per share of 2.8p the year before.
Revenue also declined, falling 4.4% to GBP23.9 million from GBP25.0 million.
According to Argentex, 19% growth in the number of clients trading was offset by a 20% reduction in average spend due to lower FX volatility.
Looking ahead, the firm said that it continues to trade in line with market expectations, and the board remains confident in its full-year outlook.
Annual revenue is expected to be in the "mid-GBP40 millions", with Ebitda margin in the low-single digits.
"Our focus during the first half has centred on resetting the company's strategic agenda and, in particular, accelerating our move into alternative banking and overseas expansion," sad Chief Executive Officer Jim Ormonde.
"Trading remains in line with expectations, and we have continued to see improved trading momentum throughout the second quarter. With a strong team now in place to drive our growth agenda, I am excited about the opportunities ahead for the business and remain confident in the trading outlook for the full year and beyond."
Shares in Argentex Group were trading 6.0% lower at 30.00 pence each in London on Wednesday afternoon.
By Holly Beveridge, Alliance News senior reporter
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