Argentex Group PLC (AIM:AGFX) revenues jumped by almost a quarter in its financial year just ended as activity among its corporate customer base picked up again post-pandemic.
Group revenue in the year to the end of March 2022 increased by 23% to £34.5mln (2021: £28.1m), including £8mln from new clients while 1,624 corporates actively traded, itself a new record, said the currency specialist.
Pre-tax profits in the year to end-March jumped 35% to £10mln.
Argentex said client trading volumes recovered throughout the period as market confidence rebounded from 2021 and volatility remained high.
Over 80% of volumes comprised trades in sterling, euro and US dollar, significantly limiting the impact of risks in emerging market currencies, it added.
Spot/forward revenue mix remains balanced (Forward 51%, Spot 49%), though it noted the client base has become more diversified with 36% of revenue represented by the top 20 customers compared to 41% a year ago.
An online platform launched in February 2022 and that contributed to a record March with 391 trades completed (March 2021: 123 trades)
Argentex added that following its good reception it will speed up its investment in new products both to increase its customer base and to further its international expansion.
The Amsterdam office increased its contribution, while a management team have been recruited in Australia with trading to begin there once regulatory approvals have been obtained.
Current trading has been healthy this year so far, added the statement, with first-quarter revenue increasing by 22% to £10.1mln (Q122: £8.3mln).
The company said it expects continued investment into people and technology, underpinning momentum in client base growth and accumulation of market share from incumbent banks which account for 85% of the cross-border market.
Harry Adams, chief executive, said: “Argentex has performed strongly, delivering double-digit revenue and profit growth driven by a resurgence in trading volumes as companies recover their confidence in the post-Covid era.”
The financial year-end is changing from 31 March to 31 December to better reflect the seasonal flows within the business.