Argentex Group (AGFX) H1 2025 earnings summary

Executive summary

• Revenue for FY24 reached £50.3m, slightly up from £49.9m in FY23, with H2 showing 6% year-over-year growth after a 4% decline in H1.

• EBITDA margin improved to 8%, exceeding expectations, but the year ended with an operating loss of £0.2m due to planned transformation investments.

• Client base grew 9% to 2,113, though average revenue per client fell by 9% due to product/client mix and margin compression.

• International expansion advanced with new licences and operational launches in Australia and Dubai.

• Leadership strengthened with new executive appointments and board changes to support growth strategy.

Financial highlights

• Revenue: £50.3m (FY23: £49.9m); EBITDA: £4.0m (FY23: £11.9m); Operating loss: £0.2m (FY23: profit £8.1m).

• Net cash at year-end: £18.4m, remaining debt-free.

• Earnings per share: (1.1p) vs. 4.6p in FY23; no dividend declared (FY23: 0.75p per share).

• One-off costs included £1.5m for transformation, £0.6m for share plan cancellation, and £0.6m from a client default.

• Capex was £2.1m, mainly for the new global platform, funded by a £3m equity raise.

Outlook and guidance

• Positive H2 momentum has continued into FY25, with revenue growth expected to return.

• Anticipates 15–20% revenue growth and mid-teen EBITDA margins in FY26.

• New digital accounts and payments platform set to launch in summer 2025.