Argentex Group (AGFX) H1 2024 earnings summary

Executive summary

• Transformation priorities: diversify revenue beyond FX, expand geographically and improve operational efficiency, with a stated focus on returning to profitable growth.

• H1 revenue declined 4% YoY, but trading momentum strengthened in Q2 and continued into July and August; cash remained generative.

• The strategy targets broader banking and payments products on a global platform, alongside expansion into Australia and Dubai.

Financial highlights

• H1 revenue was £23.9m, 4% below the prior year; revenue was broadly in line with last year at the end of August.

• Reported EBITDA was £0.7m vs £7.2m; adjusted for £1.0m prior-year provision releases and £1.4m current-period restructuring charges, underlying EBITDA was £2.1m vs £6.2m.

• Revenue was affected by a shift in spot/forward mix, as spot trades generate less revenue than forwards; client numbers and transaction volumes increased YoY.

• Gross margin remained 72% YoY.

Outlook and guidance

• Management said performance was in line with guidance and expected H2 momentum to benefit from anticipated market volatility.

• Australia was licensed and preparing to begin trading; Dubai licensing was expected in the coming weeks.

• 2024 was framed as a year to fix the foundations; product and regional deployment is planned for 2025–26, with faster progress toward sustainable profitability from 2027–28 onward.

• Australia and Dubai teams were planned to reach 12 and seven people, respectively, by year-end; further team growth is intended to follow revenue growth.