- Group enjoying positive market tailwinds
- Demand growing for more sophisticated products
- New businesses beating forecasts
AIM-listed foreign exchange provider Argentex (AGFX:AIM) followed up its strong November interim results with an unscheduled trading update that revealed revenue and earnings for the full year would be ahead of current market forecasts.
The shares, which have already had a good run since late-September, added another 8.5% to set a fresh 12-month high of 129p.
WHY IS THE COMPANY SO POSITIVE?
In its results for the period to September, published last month, the firm lifted its guidance after posting a 75% increase in revenues to £27.4 million thanks to a combination of factors.
The number of corporate customers using the platform was 12% higher than the previous year, while the number of clients using the new online platform jumped 82% on last year.
Revenues from structured solutions as opposed to plain-vanilla spot or forward contracts climbed to nearly 10% of the group total against 3% in the same period last year, far exceeding management expectations.
Also, following the receipt of an electronic money licence, the firm’s Amsterdam subsidiary performed ahead of expectations.
FX TAILWINDS AS CUSTOMER NUMBERS GROW
In today’s update, the company reported the strong momentum of the first-half has continued through the current quarter with ‘robust trading across all products and geographies’.
The core foreign exchange business is enjoying positive market tailwinds, while client numbers and the use of structured products continues to grow and the Amsterdam business is demonstrating ‘sustained outperformance’.
Therefore, the group sees results for the nine months to the end of December topping market forecasts. These results will effectively be full-year figures as the firm is changing its accounting year-end to December instead of March.
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