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FairFX Group Plc: THE INVESTMENT CASE

FairFX on track to post a maiden net profit in 2017

The decision to complement its retail offering with a corporate service is quite literally paying off
different currencies
INVESTMENT OVERVIEW: FFX The Big Picture
You won’t see FairFX on the high street, but you might well do on Sky Sports…

Summer is here and a traveller’s thoughts turn to foreign currency – good news for FairFX Group Plc (LON:FFX), which was voted the UK’s most trusted pre-paid card provider in 2016.

It beat off competition from the likes of Travelex and Thomas Cook to win the award but, unlike those big names, you won’t find FairFX bureaus and kiosks on the high street or in airports.

Instead, FairFX has developed a cloud-based peer-to-peer (P2P) payments platform that enables personal and business customers to make easy, low-cost multi-currency payments in a broad range of currencies and countries and across a range of FX products via one integrated system.

FairFX revenues grew in the first quarter

The multi-currency payments service turned a corner towards the end of last year, when it achieved a net profit.

This momentum has continued into the current year, with the first quarter seeing revenue growth of 33.1% to £2.6mln from £1.9mln the year before.

Transactions processed by the AIM-quoted firm in the first quarter rose 32.9% to £194.3mln from £146.2mln in the corresponding quarter of 2016.

READ: 2016 results in detail

WATCH: FairFX CEO delighted with 2016 performance

Last year the company added more than 80,000 new customers to its books and, as of the end of April, it had signed up a further 15,000 or so this year.

That means FairFX now has more than 600,000 clients in total, which is one of the reasons chief executive Ian Strafford-Taylor thinks the company is much better placed than it was this time last year.

“The company is significantly better equipped to maintain this growth as it targets a net profit for 2017,” the boss said.

“With the continuation of the company's strategy to maintain momentum in the retail product, whilst successfully growing the corporate offering, the board is confident that the outlook for the full year remains in line with market expectations.”

Acquisition of Q Money widens its horizons

Earlier this year FairFX snapped up digital business banking firm Q Money – and its associated e-money licence – for £425,000.

The e-money licence is helping to cut costs by allowing FairFX to internalise parts of the supply chain, something it wouldn’t be able to do without it.

WATCH: Q Money acquisition a 'real turning point' says Strafford-Taylor

With lower costs and fewer external hoops to jump through, the company believes it can steal a march on the competition and more rapidly grow its product portfolio.

FairFX said the licence also allows the group to build on its popular expense management platform and create a digital banking product for business, diversifying revenues.

FairFX sponsors Sky Sports’ F1 coverage

While you won’t see FairFX on your local high street, if you’re a fan of Formula One racing there’s a good chance you’ll see them on Sky Sports.

For the second season, FairFX is sponsoring the coverage on the broadcaster’s dedicated racing channel, Sky Sports F1.

The latest advertising campaign features the group’s various currency products, including currency cards, corporate cards and international payments and will help to raise awareness of the brand.

FairFX said the previous advertising stint on Sky Sports F1 “clearly demonstrated” benefits in terms of brand awareness and cost effective customer acquisition, hence why it has decided to return again this year.



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