Argentex Group (AGFX) H2 2024 earnings summary

Executive summary

• FY 2024 revenue and EBITDA margin exceeded guidance; H2 trading momentum strengthened and carried into Q1 FY 2025.

• Transformation priorities are operational excellence, product diversification and geographic expansion, with a focus on profitable growth, client retention and greater wallet share.

Financial highlights

• FY 2024 revenue was £50.3m, marginally ahead of FY 2023 and above guidance of mid-£40m; EBITDA was £4m, with an 8% margin.

• Reported FY 2024 EBITDA included £2.7m of one-off charges; excluding these, EBITDA was £6.7m with a 13% margin.

• Revenue momentum improved in H2, with higher activity and volumes but some margin compression; new-client revenue exceeded the prior year.

• Closing net cash was similar to FY 2023; management said the prior-year equity raise proceeds had been absorbed by investment in the business and platform.

Outlook and guidance

• Management expects a return to meaningful revenue growth in FY 2025, citing improved H2 momentum that continued into Q1.

• Digital accounts are planned for launch in summer 2025; mass payments are part of the platform’s first iteration, with a specialist team planned for H2.

• Further branch expansion will be paced by affordability and revenues from existing territories, avoiding unnecessary capital commitments.

• Management intends to be cautious about forecasting interest income, which depends on rates and client balances.