2nd Apr 2025 10:28
(Alliance News) - Argentex Group PLC on Wednesday said it is well positioned "to return to profitable growth" as it posted a swing to a loss and a marginal uptick in revenue in 2024.
Argentex is a London-based international provider of foreign exchange services to institutions, corporates and high net worth private individuals.
It reported a swing to a pretax loss of GBP1.0 million in 2024 from profit of GBP7.3 million in 2023, despite revenue edging upwards by 0.8% to GBP50.3 million from GBP49.9 million.
Driving the swing to loss was an increase in administrative costs which rose 23% to GBP50.2 million from GBP40.7 million.
Despite the loss, shares in Argentex rose on a brighter outlook ahead. They were up 20% to 48.40 pence on Wednesday morning in London.
Argentex reported improved trading momentum in the second half of the year, posting revenue growth of 6% compared the prior year, and rising from a 4% decline in the first half.
The firm noted that this positive momentum seen in the second half has continued into 2025, supporting its expectation of revenue growth for the year.
Argentex expressed confidence in its medium-term outlook, and expects further revenue growth in 2016 in the 15%-20% range, coupled with an earnings before interest, tax, depreciation and amortisation margin in the mid-teens. For 2024 it posted an Ebitda margin of 8%.
The firm did not declare a dividend in 2024. In 2023 it only declared an interim dividend of 0.75p.
Chief Executive Jim Ormonde said: "Having actively reset the business in 2024, we are now well positioned to take advantage of exciting growth opportunities in our markets and are confident about the year ahead. With regulatory and operational hubs now fully established in the Netherlands, Australia and Dubai, we believe we have strong prospects to grow our market share overseas.
"Domestically, we have restructured our front office teams and re-aligned our cost base and believe we are now better placed to serve both new and existing clients...I believe we are now well placed to return to profitable growth."
By Christopher Ward, Alliance News reporter
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