FAIRFX Group PLC Trading Statement (2993U)
January 17 2017 - 2:00AM
UK Regulatory
TIDMFFX
RNS Number : 2993U
FAIRFX Group PLC
17 January 2017
17 January 2017
FairFX Group plc
("FairFX" or "the Group" or "the Company")
Trading Statement
Strong growth, accelerated in second half of year
FairFX, the low cost multi currency payments service, is pleased
to provide the market with a trading update for the year ended
31(st) December 2016.
Turnover for the twelve months ended 31(st) December 2016 was up
27% and exceeded GBP795 million (2015: GBP627 million), which was
ahead of management expectations. In addition, revenue for the same
period is expected to show similar growth and also surpass
management expectations. Growth accelerated during 2016, with total
turnover in the second half being 45% ahead of the same period in
2015. Growth was driven by continued focus on the core products of
International Payments (up 49%) and Prepaid Cards (up 25%).
Accordingly, excluding the lower margin cash-in-the-post business,
turnover growth was approximately 40% for the year. In keeping with
the Group's stated strategic objective of growing the Corporate
segment of the business, usage of the Company's corporate card
platform rose by 98% compared to 2015. Furthermore, during the
period 80,082 new retail customers were acquired bringing the total
to 588,130, with a much higher focus on card customers over
cash-in-the-post customers.
The Company's overall focus in 2017 will be on continuing its
broad-based growth targeting the higher margin core segments of the
business. In Prepaid Cards the focus will be dual-driven, with a
combination of marketing-led acquisition of new customers and
maximizing the revenue yield of the existing customer base through
cross-selling, improved retention techniques and re-activation.
2016 saw significant investment in improving data collection and
analysis at FairFX and this will be used to both highlight areas
for improvement across our services and for enhanced CRM.
In International Payments, the focus will be on combining the
online platform (FairPay) with the wholesale/dealing platform to
form one seamless product for payments, and thereby give the
customer the choice of "self-serve" or speaking to our dealing
team. This, combined with broadening the range of payments made
possible by lowering the minimum transfer amount and adding new
currencies, is expected to provide further growth.
For the Corporate Platform, additional functionality is
currently being worked on which will further enhance the product
and we see great potential in the Corporate sector for FairFX going
forward. In addition, new corporate customer acquisition will be
driven by targeted marketing augmented by new affiliate
relationships.
Another key area for 2017 will be to review the business's
supply chain and infrastructure. The Company is now past the
critical mass at which it has the operational efficiency to
insource many processes with commensurate improvements in
efficiency as well as cost savings leading to improved gross
margin. The supply-chain review will cover all aspects of the
Company from card issuance to processing to banking partners.
FairFX CEO, Ian Strafford-Taylor, commented:
"The performance of FairFX during 2016 gives us great confidence
for the prospects for 2017 and beyond. The Company gathered
momentum as the year progressed as borne out by the growth figures
for the second half of the year. We have a clear roadmap internally
for what we will work on in the first half of 2017 and we see this
year as another exciting period for FairFX."
This announcement contains inside information.
- 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 +44 (0) 7747 788 221
About FairFX
FairFX is a leading online 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 over 35
million merchants and over 1 million ATM's in a broad range of
countries globally via Mobile apps, the Internet, 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 and ThinkMoney. 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
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