FAIRFX Group PLC Trading Statement (8007E)
July 21 2016 - 2:00AM
UK Regulatory
TIDMFFX
RNS Number : 8007E
FAIRFX Group PLC
21 July 2016
FairFX Group plc
("FairFX" or "the Group" or "the Company")
Trading Statement
Strong growth continues across the business
FairFX, the low cost multi currency payments service, is pleased
to provide the market with a trading update for the six-month
period ended 30(th) June 2016.
Following the Operational Update issued on 25 May 2016, FairFX
has continued its strong growth across its core products of
currency cards and international payments for retail and corporate
customers.
Turnover for the first half of 2016 was up 9% on a year on year
basis to in excess of GBP341 million, ahead of management
expectations. A more profitable business mix led to an improved
gross margin, with total turnover from prepaid cards and
international payments up 15% and 23% respectively. Usage of the
Company's corporate card platform rose 64% on a year on year basis.
This sustained growth in the period was followed by a record week
for the Company during the Brexit referendum period, in which
FairFX continued to service customers whilst competitors
temporarily closed some operations.
On the retail card and travel money side of the business, the
complete overhaul of the website and mobile app, as well as a
re-branding of all marketing collateral, has reaped rewards in
terms of both new customer acquisition and increased transactions
from the existing client base. In particular, the roll-out of a
revamped "my account" section on the website has decreased usage
friction whilst increasing cross-selling to existing customers. The
Company has also successfully introduced a special promotion of
refunding ATM fees to customers. This measure, combined with
better-targeted marketing and brand consistency, is driving
customer acquisition. The Company has also seen a significant
increase in its media coverage where it has been called upon for
expert comment on the travel money sector. This has led to greater
awareness of the brand and our service offering, as well as third
party endorsement.
Growth in the corporate card segment leapt 64% during the
period. With several deployments planned for the second half of
2016 that will yield tangible improvements to both the
functionality and usability of the platform, the outlook is very
positive.
The period leading up to Brexit and its aftermath was the
busiest in the Company's history in terms of volumes of business
transacted. Whilst many competitors ceased accepting transactions
for some or all of this period, FairFX remained fully operational
throughout. This serves to demonstrate the robustness and
scalability of the Company's systems.
Post-referendum, after an initial pause, we have seen strong
volumes in July as consumers adapt to the lower Sterling exchange
rates.
FairFX CEO, Ian Strafford-Taylor, commented:
"The positive momentum has continued since our last update in
terms of all our KPI's ranging from new customers, loading and
spending on retail cards and impressive growth in the corporate
card business. FairFX is well positioned to continue its strong
growth and we look forward to updating the market on further
progress when we announce our interim results."
ENDS
FairFX Group plc
Ian Strafford-Taylor,
CEO +44 (0) 20 7778 9308
Cenkos Securities plc
Max Hartley/Callum Davidson +44 (0) 20 7397 8925
Yellow Jersey PR
Charles Goodwin
Aidan Stanley +44 (0) 7747 788 221
About FairFX
FairFX is a leading international payment services provider,
incorporated in the UK in 2005. The Company has developed a
cloud-based peer-to-peer payments platform that enables personal
and business customers to make easy, low-cost multi-currency
payments in a broad range of currencies and across a range of FX
products all via one integrated system. The FairFX platform
facilitates payments either direct to Bank Accounts or at 30
million merchants and over 1 million ATM's in a broad range of
countries globally via Mobile apps, the Internet, SMS, wire
transfer and MasterCard/VISA debit cards.
FairFX operates within the rapidly growing online multi-currency
payments market and provides transactional services to both
personal and business customers through four channels being
Currency Cards, Physical Currency, FairPay and Dealing. The
Currency Card and Physical Currency offerings facilitate multiple
overseas payments at points of sale and ATM's whereas the FairPay
and Dealing products support wire transfer foreign exchange
transactions direct to Bank Accounts.
For Corporates, FairFX has a market-leading business-expenses
solution based around its corporate prepaid card allied to a
platform allowing the Corporate to better control expenses and
improve transparency whilst removing administrative burdens from
staff.
In addition, FairFX has entered into a number of "white-label"
arrangements for the use of its P2P matching platform. Customers
include easyjet, ThinkMoney and Pitney Bowes. FairFX has also
partnered with Concur Technologies, Inc. a leading provider of
integrated travel and expense management solutions with over 25
million users globally. Such relationships provide strong support
for FairFX's customer acquisition strategy.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTSEAFASFMSELW
(END) Dow Jones Newswires
July 21, 2016 02:00 ET (06:00 GMT)
Equals (LSE:EQLS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Equals (LSE:EQLS)
Historical Stock Chart
From Jul 2023 to Jul 2024