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Argentex hails record number of new corporate clients in second quarter

The company also highlighted “encouraging levels of client activity” in September, which it said pointed to an unwinding of pent-up demand

Argentex - Argentex hails record number of new corporate clients in second quarter

Argentex Group PLC (LON:AGFX) has hailed a record number of new corporate clients in its second quarter as well as “encouraging” trading into the second half of its current year.

In its results for the six months to September 30, 2020, the provider of foreign exchange services said it had recruited 126 new corporate clients in the second quarter, while the number of corporate clients trading during the period was up 15% year-on-year at 212.

WATCH: Argentex LLP says trading update shows fundamentals remain strong as 'debt free and cash rich'

Argentex also highlighted “encouraging levels of client activity” in September, which it said pointed to an unwinding of pent-up demand. Revenues generated during the month were up 57% of the figure from August.

The company reported a first-half pre-tax profit of £3.45mln compared to £4.05mln in 2019, while revenues fell to £11.8mln from £13.8mln reflecting the coronavirus (COVID-19) pandemic.

Despite the declines, Argentex said post-period from October onwards its trading had been encouraging and the general economic environment “continues to improve”.

The firm said this development will offer “substantial opportunities” and that trading volumes are expected to recover further as confidence returns to the market.

"Like many other businesses, the six-month period for Argentex has been shaped by the impact of the [coronavirus] pandemic and associated macro-economic uncertainty. This has caused a significant fall in our trading volumes as clients have, temporarily, put their dealing decisions on hold. However, each client has a commercial need to mitigate FX risk inherent in their business and we have started to see client activity return to more normal levels”, co-chief executives Carl Jani and Harry Adams said in a statement.

“Importantly, the fundamentals of our business remain strong and we experienced a record number of new clients trading in the second quarter, sourced by our expanding and increasingly capable sales team. With our disciplined risk management, balance sheet strength and long-term focus, we remain confident in our ability to navigate the ongoing challenges of Covid-19 and Brexit and continue to deliver sustainable long-term growth for our shareholders", they added.

Shares in Argentex were 0.8% lower at 118.5p in mid-morning trading on Friday.

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Quick facts: Argentex

Price: 132 GBX

AIM:AGFX
Market: AIM
Market Cap: £149.43 m
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