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FairFX tops expectations as it posts first half-year net profit

FairFX expects to post a maiden full-year profit this year
Dollars, ponds and euros
Historically the first half has been weaker than the second half

FairFX Group Plc (LON:FFX) has achieved its first interim net profit since floating in August 2014.

The low-cost multi-currency payments specialist’s trading statement covering the first half of 2017 revealed the profit performance was ahead of management’s expectations, and was achieved on the back of a 25.8% year-on-year increase in turnover to £433.8mln.

WATCH: FairFX boss Ian Strafford-Taylor 'absolutely delighted' with maiden interim net profit

FairFX said a combination of a more profitable business mix, leading to an improved gross margin, and cost benefits of rationalising the supply chain, resulted in the better-than-anticipated performance.

Total turnover from pre-paid cards and international payments rose 23% and 35%, respectively,, from the corresponding period of 2016.

READ FairFX on track to post a maiden net profit in 2017

Usage of the company's corporate card platform rose 93% year on year, despite the fact sterling took a biffing both before and after the General Election.

On the retail card and travel money side of the business, the focus has remained on improving the user experience of FairFX across all its platforms, the company said.

The company’s app and web site have been spruced up, while targeted campaigns were conducted in the first half of the year to grow revenue from existing customers by improving retention, getting existing customers to start using their cards again and by increasing cross-selling opportunities through improved data mining.

"The performance of the group in posting a profitable first half is a significant achievement," said Ian Strafford-Taylor, chief executive officer of FairFX.

“Historically the first half has been weaker than the second half and to reach this point ahead of our expectations is an excellent result. FairFX is well positioned to continue its strong growth and we are confident about making further progress in 2017," he added.

 

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