FAIRFX Group PLC Trading Update (0728O)
January 25 2019 - 2:00AM
UK Regulatory
TIDMFFX
RNS Number : 0728O
FAIRFX Group PLC
25 January 2019
25 January 2019
FairFX Group plc
("FairFX" or "the Group" or "the Company")
Trading Update
Another year of significant growth and investment
FairFX, the e-banking and international payments group, is
pleased to announce the following trading update for the year ended
31(st) December 2018 ("FY18").
Full year turnover for the Group was GBP2.36 billion, an
increase of 111% on the prior year (2017: GBP1.12 billion) and in
line with management expectations. Turnover was up 22% excluding
the effect of the acquisitions of CardOne Banking in August 2017
and City Forex in February 2018.
The Group has demonstrated strong growth during FY18 and expects
to report adjusted EBITDA of approximately GBP7.5 million for the
12 month period (FY17: GBP1.0 million).
Growth was again driven by the Group's continued focus on its
core products of International Payments (up 134%) and Prepaid Cards
(up 8%). 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 30% compared to 2017.
Furthermore, during FY18, 315,000 new UK domiciled retail customers
were acquired bringing the total to 1,040,000 customers.
The Group has continued to invest in the CardOne business and
platform to pursue identified opportunities which are expected to
be realised during the current financial year.
The other key area of strategic focus for the Company has been
to invest in the platform and rationalise the supply chain.
Pleasingly, further advances were made during the year, including
self-issuance of CardOne corporate cards under our Mastercard
membership. One area of focus was the removal of a layer of the
supply chain and improve margins across the corporate card
division, and whilst good progress was made this was slower than
the Board would have liked. The Board expects this to be finalised
and to contribute improved margins during the current financial
period.
Outlook
Whilst Brexit uncertainty depressed Sterling against the Dollar
and Euro during FY18 weighing on customer sentiment and activity,
the Group demonstrated significant growth through the year.
Ongoing, and even potentially lengthened, Brexit negotiations
continue to provide macro-economic headwinds for the business. The
Board is pleased to confirm, however, it expects 2019 to be another
year of significant growth.
All figures contained in this announcement are subject to
audit.
This announcement contains inside information.
For more information, please contact:
FairFX Group plc +44 (0) 20 7778
Ian Strafford-Taylor, CEO 9308
Cenkos Securities plc - Nominated Advisor
and Joint Broker
Max Hartley (Nomad)
Callum Davidson +44 (0) 20 7397
Nick Searle - Sales 8900
Canaccord Genuity Limited - Joint Broker
Bobbie Hilliam
David Tyrrell +44 (0) 20 7523
Alex Aylen - Sales 8150
Yellow Jersey
Charles Goodwin
Joe Burgess +44 (0) 7747 788
Annabel Atkins 221
About FairFX
FairFX is a leading challenger brand in banking and payments
that disintermediates the incumbent banks with a superior user
experience and low-cost operating model. This 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 provides banking and payment services to both personal
and business customers through four channels: Currency Cards,
Physical Currency, International Payments and Bank Accounts. The
Currency Card and Physical Currency offerings facilitate multiple
overseas payments at points of sale and ATM's whereas the
International Payments channel supports wire transfer foreign
exchange transactions direct to Bank Accounts. For Corporates,
FairFX has a market-leading business-expenses solution based around
its corporate prepaid platform and card that can yield significant
savings on a Corporate's procurement through better controls and
improved transparency and also streamline the procurement process
thus saving administrative costs. Through the recent acquisition of
CardOne, FairFX now has the capability to offer retail and business
Bank Accounts with all the functionality you would expect from a
Bank, namely faster payments, BACs, direct debits, international
payments and a debit card.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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