FairFX climbs after strong annual and Q1 revenue growth

FairFX Group said it has started 2019 strongly as first quarter revenue growth exceeded expectations, while full-year results showed double-digit profit and revenue growth.

For the three months ended 31 March, the e-banking and international payments group secured revenue of £7.0m, an increase of 43%, as all segments bettered their performances of the same period last year and group turnover, which represents money passing through the FairFX platform, increased by 33% to £620.5m.

Ian Strafford-Taylor, chief executive of FairFX, said: "The investments in technology we made in 2018 are already bearing fruit in 2019, just one example being the granting of Bank of England settlement accounts and direct access to the faster payments scheme. Our technology platforms are now enabling us to iterate our product suites rapidly in terms of both improved customer experience and functionality. Against this backdrop, the board is confident in achieving expectations for the full year."

Meanwhile, across 2018 the AIM traded company enjoyed a 69% increase in revenue to £26.1m, while profit before tax jumped from £0.2m to £2.1m.

Full-year turnover came in at £2.3bn, up 111% from the year before, after having been boosted by the acquisition of the City Forex business in February of last year.

Cash and cash equivalents stood at £7.9m at the end of the year, down from £17.8m 12 months prior, primarily because of the £6m that FairFX shelled out for the City Forex acquisition.

"2018 was a transformational year in the evolution of the group. We continued our strong growth, both organic and via acquisition, and combined this with significant investment in our people and technology to lay the foundations for our ongoing expansion. The addition of the City Forex business in February provided both an increase in revenues and a payments platform that combines a full front-to-back process which is now yielding efficiencies and capacity across the whole group," said Strafford-Taylor.

FairFX Group's shares were up 10.99% at 105.44p at 1237 BST.