London-headquartered currency risk management and alternative banking specialist Argentex Group plc (LON:AGFX) has released its financial results for 2024, showing relatively flat top-line Revenues while increasing costs turned a £5M profit in 2023 into a £1M loss in 2024.
2024 Highlights at Argentex
Financial summary
- Group revenue of £50.3m (FY23: £49.9m), with growth in the number of clients offset by a reduction in average spend.
- Improving trading momentum with revenue growth of 6% yoy in H2 (vs. 4% yoy decline in H1).
- EBITDA margin of 8% comfortably ahead of previous expectations of low single digit EBITDA margin.
- Operating loss of £0.2m (12 months to 31 December 2023: operating profit of £8.1m), with margin reduction as a result of planned investment in business transformation.
- Net loss of £1.2m (FY23: profit of £5.1m).
- Strong balance sheet: debt free with net cash of £18.4m at 31 December 2024.
Operational summary
- Total number of clients increased by 9% to 2,113 (12 months to 31 December 2023: 1,938).
- Average revenue per client fell by 9% during the period compared to the previous 12 months due to a combination of product/client mix, volatility and margin compression.
- International expansion continued with licences obtained in both Australia and Dubai. Both regions are now fully operational and serving clients.
- Revenue diversification plans on track. Argentex Global Platform (on which both new and existing services will run) on track to launch in Summer 2025.
- Strengthened leadership. Experienced permanent executive team in place to deliver growth plans.
- Management incentivised and aligned with shareholders. New LTIP for Executive team and CSOP for select employees.
Board changes
- Digby Jones to step down as a Non-Executive Director at AGM in June.
- Jeff Parker joins Board as a Non-Executive Director from 1 April.
Argentex Outlook
Regarding the company’s outlook for 2025, Argentex said that the positive momentum delivered in H2 2024 has continued into the current financial year and it has made further progress in implementing its strategic growth agenda, with delivery remaining on-track. With trading having commenced in Australia and Dubai and the planned launch of digital accounts and payments in summer 2025, Argentex anticipates a return to revenue growth in FY25. The company said it will continue to invest in growth, and accelerate progression into new products and services. Argentex remains confident in its medium-term outlook and continues to expect revenue growth in FY26 in the 15% – 20% range, with EBITDA margins in the mid-teens.
Geographic expansion
Argentex was granted licences in two more overseas jurisdictions during FY24: the Australian Financial Services License in May 2024 and the Category 3A licence from the Dubai Financial Services Authority in November 2024. The company said it looks forward to trading ramping up from each of these overseas entities during FY25.
Jim Ormonde, Chief Executive Officer of Argentex said:
“Having actively reset the business in 2024, we are now well positioned to take advantage of exciting growth opportunities in our markets and are confident about the year ahead. With regulatory and operational hubs now fully established in the Netherlands, Australia and Dubai, we believe we have strong prospects to grow our market share overseas. Domestically, we have restructured our front office teams and re-aligned our cost base and believe we are now better placed to serve both new and existing clients. As a result of the investments made in technology and people as we continue to diversify our offering, all regions will benefit from the suite of new services we plan to launch this year and beyond, together with easier, automated onboarding processes which will drive operational leverage. It has been a year of significant change in the business, but I believe we are now well placed to return to profitable growth.”
Argentex’s full 2024 results release can be seen here.
