Currencies
Argentex reveals better than expected full year and return to growth / Image source: Adobe
  • Full-year profit ahead of expectations
  • Return to revenue growth in 2025
  • New overseas hubs established

Shares in global specialist currency risk management firm Argentex (AGFX:AIM) leapt as much as 18% to a new monthly high of 47.7p after it revealed full-year revenue and profit ahead of expectations.

The shares are up 66% year-to-date but remain down 18% over the last 12 months reflecting a tough year which has seen the business reorient its focus towards revenue diversification and operational efficiency.

BUSINESS RESET

Chief executive Jim Ormonde commented: ‘Having actively reset the business in 2024, we are now well positioned to take advantage of exciting growth opportunities in our markets and are confident about the year ahead.

‘With regulatory and operational hubs now fully established in the Netherlands, Australia and Dubai, we believe we have strong prospects to grow our market share overseas.’

Group revenue for the year to 31 December 2024 was £50.3 million, as reported in January’s trading update, flat on the prior period.

However, the full year outturn masks 6% year-on-year growth in the second half compared with a 4% decline in the first half.

The full-year EBITDA (earnings before interest, tax, depreciation, and amortisation) margin of 8% was comfortably ahead of prior expectations of low single-digits.

The business made a small operating loss for the year, reflecting planned investment in the business transformation, but ended the period with net cash of £18.4 million on the balance sheet and no debt.

RETURN TO GROWTH

The improved momentum seen in the second half has continued into the current year and with the planned launch of digital accounts and payments in the summer, the company anticipates a return to revenue growth in 2025.

‘As a result of the investments made in technology and people as we continue to diversify our offering, all regions will benefit from the suite of new services we plan to launch this year and beyond, together with easier, automated onboarding processes which will drive operational leverage.

‘It has been a year of significant change in the business, but I believe we are now well placed to return to profitable growth,’ enthused Ormonde.

LEARN MORE ABOUT ARGENTEX

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Issue Date: 02 Apr 2025