Aquis Exchange PLC on Thursday reported a fall in pretax profit despite managing to increase revenue.
Pretax profit dropped 30% to £700,000 in the six months to June 30 from £1.0 million in the same period a year ago. This was mainly due to an increase in administrative expenses.
However, revenue increased 16% to £7.8 million from £6.7 million last year.
The company reported that membership of Aquis Exchange grew to 42 from 39 last year, although there was a small decline in average monthly usage, reflecting the more volatile market conditions. Revenue from the exchange division, comprising both Aquis Exchange and Aquis Stock Exchange, increased by 10% to £5.4 million. A total 12 new admissions for Aquis Stock Exchange were completed this year against 14 a year ago.
Aquis Exchange’s market share of all pan-European trading declined to 5.20% in the first half of this year compared to 5.35% a year before.
Looking forward, Aquis reiterated its aim of becoming one of the leading exchange groups through ‘best-in-class trading opportunities’, transparency and leading technology. The company continues to make long-term investments in technology and sales & marketing activities. In the short term, the target is to increase trading volumes and improve fundraising prospects for small and mid-cap companies.
Despite macroeconomic uncertainty, Aquis said current trading is ‘tracking in line with market expectations for the full year.’
Chief Executive Officer Alasdair Haynes said: ‘Our revenue has continued to increase, reflecting the strong momentum across the group. This growth has been driven by increased contributions from the principal business divisions: pan-European secondary trading, technology sales, primary issuers and data revenues...We are also particularly encouraged by the number of new significant technology licences that continue to be signed as this growing division becomes an increasingly material and important part of our business.’
Shares in Aquis Exchange were trading 8.0% lower at 368.00 pence each on AIM on Thursday afternoon.
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