Aquis Exchange PLC (LON:AQX), the stock exchange operator posted its first full-year profit after trading surged in the final three months of 2020.
Membership of the Aquis Exchange (formerly Nex) grew to 33 companies in 2020 (2019:30) and there was a 50% increase in the average monthly usage, in terms of chargeable orders in the fourth quarter, the group said in a statement.
Revenue in the year to end-December increased by 67% to £11.5mln, while underlying profits [EBITDA] jumped from zero to £1.5mln with a pre-tax profit of £0.5mln.
Aquis added its market share of pan-European trades rose over the year to 4.7% from 4.2% and as of March this year was 5% with 39 companies now listed.
This includes Samarkand PLC, which was the first business to float using a growth prospectus.
Alasdair Haynes, chief executive, said: "For any founder it is a very proud day when you are able to announce your company's first full-year profit.
"The fact that Aquis has delivered this against the backdrop of COVID-19 and Brexit is even more remarkable and demonstrates the ongoing value of our offering.
“Momentum has carried into current trading, with strong performances across the Group and particularly notable progress in AQSE, which is now truly fit for purpose for modern-minded SMEs looking to float. “
Liberum said the numbers beat its forecasts with exchange subscription revenues up by 46% YoY to £7.7m, helped by market share gains and strong trading volumes in equities with technology licensing and market data performance being particularly strong.
The acquisition of AQSE 9Nex) has already contributed £1.2mln to revenues through issuer fees and synergies across the other businesses.
"Having already made in-roads in secondary market trading, Aquis also has the hallmarks of disrupting the primary marketplace via AQSE".
The broker raised its target price to 655p (from 606p) and the shares, which are listed on the LSE's rival AIM market, rose by 2.6% to 585p.