Strong Growth with turnover exceeding GBP1 billion
FairFX, the e-banking and international payments group, is pleased to provide the market with a trading update for the year ended 31(st) December 2017 ("FY17").
Full year turnover for the Group was in excess of GBP1.1 billion, an increase of 39% on the prior year (2016: GBP798 million) and in line with management expectations.
On an organic basis, excluding the effects of the CardOne Banking ("CardOne") acquisition, which completed in August 2017, Group turnover was up 17.3% at GBP936 million. Underlying growth in turnover (excluding the effects of lower margin business for Leicester City FC) was up 27% for the year. As a result of this strong performance, the Group expects revenues and profits to be ahead of market expectations for FY17.
Growth was driven by the Group's continued focus on its core products of International Payments (up 19.5%) and Prepaid Cards (up 18.0%). In keeping with the Group's stated strategic objective of growing the Corporate segment of the business, usage of the Company's corporate card platform rose by 61.9% compared to 2016. Furthermore, during FY17, 68,136 new UK domiciled retail customers were acquired, bringing the total to 701,206.
The integration of CardOne into the Group has been successful and the planned synergies have been realised during 2017 with more expected to follow in 2018. As a result of the CardOne transaction, there will be further focus on optimising the combined marketing spend. The appointment of Ben Wynn as Chief Product and Marketing Officer means the Group is now well placed to refine an integrated marketing strategy for 2018 and beyond.
The Company's focus in 2018 will be based on the two core themes of rapid product innovation and extracting increasing economies of scale.
On the product innovation side, a key focus in 2018 will be on rolling out new products in Banking by building upon the technology acquired as part of the CardOne transaction. In this regard, the Group will be rolling out the Fair Everywhere multi-currency bank account product in the first quarter of 2018 with a focus on the business sector and more specifically, SME's. In addition, the Group has development pipelines for the corporate expenses platform and the retail FX card offerings. All product roll-outs will be accompanied by an integrated marketing strategy across both digital and traditional channels.
Regarding the realisation of economies of scale, as previously announced, the Group will be using its Mastercard membership to enable it to issue its own cards and has a number of initiatives in progress to rationalise its supply chain and minimise costs.
FairFX CEO, Ian Strafford-Taylor, commented:
"The performance and evolution of FairFX during 2017 gives us great confidence for the prospects for 2018 and beyond. The Company grew consistently through the year and did not miss a step through the acquisition of CardOne Banking, which is testament to the management depth we now possess. We have a clear roadmap internally to achieve our 2018 goals, which will see the business continue its growth, further broaden the product offering and improve margins."
This announcement contains inside information.
FairFX Group plc
Ian Strafford-Taylor, CEO +44 (0) 20 7778 9308
Cenkos Securities plc
Max Hartley/Callum Davidson +44 (0) 20 7397 8900
Charles Goodwin +44 (0) 7747 788 221
Katie Bairsto +44 (0) 7946 424 651
Abena Affum +44 (0) 7555 159 808
FairFX is a leading challenger brand in banking and payments that disintermediates the incumbent banks with a superior user experience and low cost operating model. This enables personal and business customers to make easy, low-cost multi-currency payments in a
Still holding above 75. Needs something to push it and create some distance from the 2014 high http://invst.ly/5m76z
Hope this is helpful. It's just my opinion based on what I think the chart is suggesting. This is always a balance of probabilities so my opinion can be wrong and other analysts may have differing views.
Further to the announcement on 8 August 2017 regarding FairFX's proposed acquisition of CardOne, a conditional Placing to raise approximately GBP25.0 million (net of fees and expenses) and an Open Offer to raise up to approximately GBP1.0 million, the Company announces that all Resolutions put to Shareholders in connection with the Fundraising and Acquisition were duly passed.
Furthermore, the Company announces that it has received valid acceptances from Qualifying Shareholders in respect of 4,637,813 Open Offer Shares, including applications for 3,422,608 Open Offer Shares under the Excess Application Facility. This represents approximately 268 per cent. of the maximum number of Open Offer Shares available under the Open Offer.
Qualifying Shareholders who have validly applied for Open Offer Shares will receive their full Basic Entitlement. In addition, Qualifying Shareholders will be allocated any shares applied for under the Excess Application Facility on a pro rata basis.
Open Offer Shares (in uncertificated form) are expected to be credited to CREST accounts on 25 August 2017 and definitive share certificates for the Open Offer Shares (in certificated form) are expected to be despatched to Shareholders who hold their Ordinary Shares in certificated form on 1 September 2017.
Accordingly, an application has been made for 51,528,084 New Ordinary Shares to be admitted to trading on AIM on 25 August 2017 ("Admission"), representing the 46,034,485 Placing Shares, 1,730,669 Open Offer Shares and 3,762,930 Consideration Shares. It is expected that Admission will occur at 8.00am on 25 August 2017. Following Admission, the Company will have 155,368,259 Ordinary Shares in issue admitted to trading on AIM. This figure of 155,368,259 may be used by Shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.
The Fundraising and Acquisition remain conditional on Admission.
Unless otherwise defined, capitalised terms within this announcement have the same meaning as those within the 'Definitions' section of the Company's announcement dated 8 August 2017 under RNS Number 3396N.
I applied for 1005 increase on current holding, at 58p. Have been allocated full qty. Not a popular "rights" issue ?
Presumably sp will fall significantly. Sell existing holding ? Do I have to hold until transaction is completed ?
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