TIDMAGFX
RNS Number : 7482D
Argentex Group PLC
01 July 2021
1 July 2021
Argentex Group PLC
("Argentex" or the "Group")
Full year results for the period ending 31 March 2021
A resilient performance in highly challenging markets, with
record second-half client activity supporting positive long-term
growth trajectory
Argentex Group PLC (AIM: AGFX), the provider of foreign exchange
services to institutions, corporates and high net worth private
individuals, is pleased to announce its full year results for the
year ended 31 March 2021.
Financial Highlights
-- Foreign exchange ("FX") turnover of GBP12.75bn, up 5% (2020: GBP12.1bn)
-- Group revenue stable at GBP28.1m (2020: GBP28.9m), including GBP7.4m from new clients
-- Underlying operating profit of GBP8.7m (2020: GBP12.5m)
-- Earnings per share (EPS) 5.2p (basic) and 5.9p (underlying)
(2020: 7.1p basic and 8.8p underlying)
-- Final dividend of 2p per share to be paid (2020: 2p per share)
Operational Highlights
-- Accelerated client acquisition and record H2 client activity:
o 499 new corporate clients traded during the year
o Record 1,385 corporates actively traded in 2021, up 14% on
2020
o Client trading volumes recovered to record levels in H2 after
improved market confidence
o H2 revenues (GBP16.4m) up 39% versus H1(GBP11.7m)
-- Sales team growth driving diversified revenue streams:
o Total of 21 new hires over the year; 12 new sales team
members
o Higher quality and more diversified client base, with top 20
clients now representing 41% of Group revenue
-- Consistent business mix maintained:
o In line with historic trend, over 80% of the Group's portfolio
comprised trades in sterling, euro and US dollar
o Continued even revenue split between spot and forward
trades
o FX Options book continued to generate material revenues
-- Business model resilience:
o Unchanged prudent and conservative risk management approach
maintaining high-quality cash flow, sustainable business growth and
immaterial levels of bad debt
o Group has safely transitioned employees back to new
headquarters in London after successfully adopting remote
working
Well positioned for continued growth
-- Amsterdam office began to generate revenue in first year of operation
-- Australian licence application underway with the intention of opening in Sydney in FY22
-- Continued to attract industry leading expertise, with specific focus on sales team breadth
-- New CFO, Jo Stent, joined in February 2021
-- New London headquarters provides substantial capacity for further growth
Harry Adams, Chief Executive Officer, stated:
"Despite an extraordinary market backdrop and a reporting period
characterised by three national lockdowns, I am proud that the
business has continued to perform and our team has provided vital
confidence to our clients during a time when it has been needed
most. Covid-19 undoubtedly introduced new operational challenges,
but our historic investment in systems, technology and prudent
approach to risk management has ensured our business model
continues to deliver.
"Like any trading business, Argentex wasn't immune to the dip in
market confidence during H1, but we have responded strongly by
reporting a 5% improvement in year on year turnover, driven by
growing client demand and record levels of activity in the second
half. I am pleased that our first quarter of the current financial
year has continued this trend and our revenues are approximately
34% per cent ahead of the same quarter last year. It's this
momentum, combined with the exceptional talent within the business,
that provides renewed confidence in our long-term strategy."
Lord Digby Jones, Non-Executive Chairman, said:
"The last financial year has been one of resilience for
Argentex. I am proud that the significant threat to all businesses
posed by Covid-19 was met by our firm by its long-term vision,
strong culture, robust risk management and an unrivalled
understanding of foreign exchange markets. Growth over the
long-term has always been the Group's priority and as volumes
return to the market, I am confident in the platform Argentex has
built to meet this increasing demand.
"In line with the Group's distribution policy, I'm pleased to
declare a dividend of 2p per share, underlining our confidence in
our future prospects."
For further information please contact:
Argentex Group PLC
Harry Adams - CEO
Jo Stent - CFO
(Via FTI Consulting)
FTI Consulting (Financial PR)
Ed Berry, Shiv Talwar, Ambrose Fullalove
Telephone: 0203 727 1046
argentex@fticonsulting.com
Numis Securities Limited (Nominated Adviser and Broker)
Stephen Westgate, Charlie Farquhar, Laura White, Hugo
Rubinstein
Telephone: +44 (0) 20 7260 1000
Analyst briefing
A meeting for analysts will be held virtually at 9.30am today,
1(st) July 2020. Analysts wishing to attend this event can register
via email at argentex@fticonsulting.com. Argentex's Full Year
results announcement will also be available today on the Group's
website at www.argentex.com.
Chairman statement
The last year has tested Argentex, just as it has every business
in the world, in ways it was impossible to foresee.
I am proud to be the Chairman of a Group whose true resilience
and quality - of its business model, its client offering and its
employees - have shone through to the benefit of all its
stakeholders.
Since early in 2020 the world has faced its most severe economic
challenge since the Second World War. Argentex had to act swiftly
to meet this challenge and to overhaul everything that was
previously part of "business as usual".
It has been a privilege to work as a member of a special team,
from Carl, Harry and the Board of Directors through to every person
at the Company during this supremely challenging time. I would like
to thank every single one of them for their wholehearted commitment
to protecting employee wellbeing and company operations during this
period.
The continued successful delivery of the Argentex business model
is testament to the strength of the Business's inner core: a
long-term vision, strong culture, robust risk management and an
unrivalled understanding of foreign exchange markets, with our
clients and their increasingly complex needs front and centre. Our
unswerving focus on quality in all we do underpins that resilience.
We highlighted that at the time of the IPO in Summer of 2019 and
often against the odds, there has been not one sign of compromise
since, be it in talent, technology, or our client base.
Now that the world appears to be getting slowly back on its feet
we can build on our maintained momentum.
We can use our responses to everything the last year threw at us
as a springboard for our next phase of growth, staying true to our
long-term vision.
Market backdrop
Global foreign exchange markets have been at the forefront of
the commercial world's response to the 2020 economic meltdown.
While uncertainties surrounding the US Election, ongoing fallout
from Brexit and unpredictable future trading relationships between
large economies were forecast, the pandemic caused an unprecedented
severe dislocation and readjustment of international capital
flows.
An initial and clear impact was soaring volatility in FX
markets, with rising unemployment, bleak GDP forecasts and a
consequent and subsequent de-risking approach resulting in a
migration to safe-haven currencies such as the US dollar.
Understandably, such uncertainty eventually translated into trading
hesitancy and many market participants temporarily delayed their FX
trades until the wider backdrop improved and there was safer
predictability in execution outcome. Whilst client trading patterns
undoubtedly changed in line with this dynamic, Argentex's expert
teams have continued to analyse market trends and they have ensured
each individual client received bespoke solutions adapted to a
rapidly changing environment as trading volumes rebounded
healthily.
The team has faced the challenges that were present in so many
businesses. The safety and wellbeing of our employees has been our
absolute priority throughout the reporting period which experienced
three national lockdowns. It was reassuring to see how quickly and
efficiently the Business implemented working-from-home policies,
developed COVID-compliant protocols for essential office attendance
and assisted employees in coping in these tremendously difficult
times whilst always preserving "business as usual" for our
clients.
Key achievements
Our resilient financial performance has been supported by our
move to new, larger and more efficient premises with facilities
that respect both the workplace and lifestyle of our employees. Its
capacity futureproofs our business as our graduate recruitment
programme constantly grows in delivering new recruits.
Meanwhile, our plans for international growth have not abated
and we have made as much progress as has been allowed due to
national COVID restrictions in accessing EU and Australian markets
via Amsterdam and Sydney. Both jurisdictions offer Argentex highly
regulated markets where there is latent client demand for our
products and type of service. Our Amsterdam footprint also provides
Argentex with an ability to operate cross-border within the EU.
We were delighted that Jo Stent joined us as Chief Financial
Officer in February. The calibre of such a hire is testament of our
ability to attract highly credible, deeply experienced senior
talent to help support and build on our growth story. She brings a
different lens through which to view the Business as it grows,
given her expertise at Telus Communications, Deloitte and most
recently at the European Tour and the Ryder Cup; I look forward to
watching her assist in unlocking the significant potential value
available to Argentex shareholders.
We have always said, and made a reality of the fact, that people
are our biggest asset. Nurturing our staff has always been taken
extremely seriously. Our training programmes for sales teams, the
trading floor and operational managers have been unaffected by the
changed working environment that was forced upon us. We never
stopped investing in our people throughout a unique difficult
period for the country and all its businesses, large and small.
It would be remiss not to mention Carl Jani's resignation as
co-CEO in June 2021, after the year end. I would like to thank Carl
for his invaluable contribution to Argentex. The Business will go
from strength to strength as the management team continues to
deliver long-term value for clients, employees & shareholders
alike.
Outlook
Confidence is everything in an economy and there is much to be
optimistic about as we all approach "a new normal". The key markets
in which Argentex operates are on the right path for a sustainable
recovery and trading volumes are encouraging.
What matters now is a resumption of growth on a platform that
has proven its resilience and maintenance of quality in all aspects
of our business in the most challenging of years. Our robust
financial position, strengthened team and new premises all stand
your Company in good stead to capitalise on the post-pandemic
national and global recovery. We shall be relentless in driving
market leading outcomes for our clients and value for our
shareholders.
Thank you to our shareholders and employees alike for your
continued support. But to you all, and above all, thank you for
giving me the privilege of being your Chairman.
Lord Digby Jones Kb.
Non-Executive Chairman
CEO statement
Overview
Against that extraordinary landscape, we are proud of how well
the Business has continued to perform. The resilience and stability
of our business model is testament to the prudent risk management
at the core of our operations, our balance sheet strength and the
growing high-quality client book on which the Business has been
established.
A short-term dip in market confidence had a noticeable impact on
client volumes through the first half of the financial year.
However, the skill and commitment of our employees in addition to
our clients' ongoing trust contributed to the Group delivering the
best six months of client activity on record during the period. As
confidence resumed and clients returned to the market, Argentex was
a partner of choice for those prizing consistent and high-quality
outcomes against a testing and volatile backdrop.
A record number of clients chose to trade with us as the market
rebounded in Q3 of the financial year. Our growing reputation and
momentum since the IPO resulted in the continued acceleration of
new client acquisition; 665 new corporate clients signed up during
the period.
We are pleased that despite clear challenges, total FX turnover
increased to over GBP12.75bn, generating annual revenue of
GBP28.1m. 1,385 corporates traded, 499 having never traded before,
generating GBP7.4m in 'new' revenue, in line with historical
ratios. We are proud to report an underlying operating profit of
GBP8.7m and to confirm a final dividend of 2p per share.
A key differentiator from our peers continues to be our prudent
and conservative approach to risk management. The long-term growth
strategy we have followed, and doubled down on at IPO, contributed
to our success in weathering a period of extreme market
uncertainty.
Argentex remains committed to prioritising high-quality cash
flow and clients whilst ensuring sustainable business growth, as
evidenced by continuing immaterial levels of bad debt through the
period.
We are very proud that despite the clear challenges of the
remote working environment, the spirit, collegiality and resilience
of our team allowed us to continue providing excellent outcomes for
our clients.
The Business is well positioned to benefit from future growth
trends in the sector. To reinforce this trajectory, we continue to
invest in our people and over the last year have made several
strategic hires, most notably of Jo Stent as Chief Financial
Officer.
Market backdrop
As our Chairman Lord Digby Jones discussed earlier, COVID-19
prompted a fundamental shift in international capital flows during
the last financial year. High volatility combined with
macro-economic concerns resulted in uncertainty and hesitancy.
Despite this, the on-going vaccine roll out and gradual return to
normality for many developed countries has led to an unwinding of
investor uncertainty, with FX flows returning to expected levels as
pent-up demand is unleashed.
Investing for the future
Argentex is well placed to continue its long-term growth
trajectory whilst capitalising on sector tailwinds and reaping the
benefits as market activity recovers.
Throughout the period many of our employees worked from home.
Our purpose-built IT infrastructure was instrumental in the
seamless move to remote working, supporting our ability to
continuously serve our clients whilst maintaining the highest
standards of service, compliance and governance from sales, through
to order placement, trade execution, settlement, reconciliations
and reporting.
The safety and wellbeing of our employees is paramount and
feedback suggests that there is a desire for people to return to
the office. In accordance with government policy Argentex has
effectively transitioned employees back to our new headquarters in
London.
We have invested significant time and effort in the design and
renovation of our new premises with a focus on an environmentally
sustainable working environment that gives us plenty of room to
upscale resources in line with demand and over an appropriate
period.
We have hired 21 new employees, significantly 12 of these new
hires have joined our top quality, highly motivated sales team. Our
concerted sales push is reflected in the diversification of our
client base - our top 20 clients contributed just over GBP11m,
representing 41% of total revenue.
In September we will continue our graduate programme, attracting
a diverse and driven talent base to future-proof our
proposition.
This process provides a healthy opportunity to scrutinise
Argentex's business ethos and values whilst remaining true to our
own beginnings - entrepreneurial and professional.
Taking advantage of growth opportunities
As set out at IPO, we have continued to pursue and grow our
international presence, focussing on highly regulated international
markets where the client appetite for our product base exists. We
opened an office in Amsterdam in March 2020 which has now begun to
generate revenue, despite the challenging context in which it
opened. The process of obtaining an Australian licence with the
intention of opening in Sydney continues and we look forward to
providing further updates in due course.
Argentex remains committed to aligning our product suite with
our client needs. We scrupulously only promote products which fit
within our strict risk profile and ones that are appropriate for
our clients and their own risk parameters.
Outlook
As businesses and society begin to recover from the pandemic, we
will face a new macro-economic environment of growth and
recovery.
Our industry will continue to develop and evolve to changing
client needs and Argentex is very well positioned to manage the
short-term challenges that may lie ahead. We face the future with
confidence and the outlook for the Business is positive. We have
invested steadily in our teams' technology and processes and are
well poised for sustainable growth in accordance with our
strategy.
Uncertainty around the impact of COVID-19 has not affected the
business model, which does not take house positions. As our clients
look to navigate the coming months, they will look to us to provide
expert advice and certainty on how to hedge their FX risk.
As communicated on 11th June 2021, my co-founder, Carl Jani,
resigned. Carl had overseen the Group's growth story with me from
the beginning, culminating in the successful IPO
in 2019. Going forward, I will take sole responsibility of an
established management team which has the depth of experience
needed to fulfil the Group's growth potential and I am confident we
will continue to deliver long-term value for employees, clients and
shareholders alike.
Despite the macroeconomic and geopolitical challenges that
appear to have become a constant backdrop over the recent years, we
have started the new financial year with good momentum in terms of
both revenue performance and client quality. The Group remains
resilient and agile.
With its continued commitment to a quality and diverse client
base, robust business model and an uncompromising approach to
compliance, we are confident about the forthcoming 12 months.
Harry Adams
Chief Executive Officer
Financial review
In the most challenging of recent times, Argentex's long-term
focused, sustainable business model underpinned its ability to
withstand heightened levels of uncertainly and volatility in the
marketplace to deliver revenues consistent with the prior year. At
the same time the Group maintained its relentless focus on its
growth ambitions as laid out at its IPO in the previous financial
year.
Argentex has demonstrated resilience in FY21 and management has
continued to display a robust approach to risk, a rigorous client
acceptance process and deep experience in the dealing team. These
key attributes coupled with high touch customer service give
Argentex an unrivalled, high quality, low risk offering in the
marketplace.
Revenues remained stable in FY21 compared to the prior year,
which up until FY20 represented year-over-year compound growth
rates of 30%. We saw a return to growth in H2 of FY21, with
revenues in the last six months of the year up 39% compared to the
first six months of the year. The number of corporate clients
traded in the year increased 14% to 1,385, with 27% of revenue
representing new business. In total, 665 new corporate clients were
signed up in FY21, representing an uplift of 40% on the previous
year.
Argentex remains firmly committed to its growth ambitions and a
strong balance sheet coupled with a low appetite for risk afforded
the Group the ability to continue with its operational investment
program. In FY21 included the move to new modern premises with
capacity for the planned increase in headcount across all
departments and a non-contracted option to extend its footprint in
the near future. The program also included continued investment in
the Group's bespoke curated technology platform which supports the
high touch customer service at the heart of the Group's ethos. This
has led to a planned short-term decrease in operating margins, with
underlying operating profit for FY21 of GBP8.7m. The increased
capacity offered by the new premises will allow the Business to
grow with the addition of new hires across all departments
including sales. In terms of the corresponding revenue generation
associated with investments made in FY21, on average new sales
staff hired begin to deliver meaningful contributions to revenue in
years 3 and 4 of tenure therefore this, in addition to the existing
sales team increasing their contributions to revenue in line with
tenure, supports the Group's growth plans moving forward.
Financial performance
Argentex delivered a resilient performance in FY21, with
revenues consistent with prior year at GBP28.1m (2020: GBP28.9m).
Performance in H1 was significantly impacted by the onset of the
pandemic as trading was put on hold for many of our clients as they
adjusted to a dramatically different set of circumstances.
In H2 however, Argentex saw a return to growth in revenues and
experienced a record trading quarter between October and December
2020.
The total number of corporate clients traded in FY21 was 1,385,
representing an increase of 14% on the prior year. 499 of these
represent new customers, in turn demonstrating strong customer
acquisition. Revenues per customer for the full year were impacted
by reduced trading activity in H1.
Underlying earnings (note 14 in the financial statements) of
GBP6.7m in FY21 represents a decrease of GBP3.3m compared to prior
year. In spite of challenging economic and trading headwinds in
FY21, the Group, in benefiting from a strong balance sheet, has
continued with operational investment in growth. As indicated in
the FY20 annual report, FY21 saw the move to new premises with
capacity for planned increases in headcount across all departments
which combined represents GBP2.4m or 73% of the GBP3.3m decrease,
of which GBP1.1m is related to IFRS 16 accounting charges. In
addition, we continued to invest in technology in support of our
tailored service-led customer-focused offering which, in line with
our accounting policy, is capitalised on our balance sheet as an
intangible asset and amortised over a three year period. The
increase in investment in technology has led to an increased
amortisation charge of GBP0.3m year-on-year. Other anticipated
increases in operating cost in the year are as a result of items
relating to the running of a listed business such as broker fees
and other additional governance and reporting-related services.
Underlying earnings of GBP6.7m takes into account normalisation
for non-recurring items of GBP0.7m which, as per note 9 of the
financial statements, represent set up costs in the Netherlands,
overlap costs relating to the office move and senior management
changes.
After taking into account non-recurring items and the revised
cost base for Argentex, the Group has accumulated retained earnings
of GBP11.2m which can be used to assess the value of the proposed
final divided relating to this financial year.
Financial position
Argentex views its ability to generate cash from its trading
portfolio as a key indicator of performance within an agreed risk
appetite framework. As at 31 March 2021, Argentex has cash and cash
equivalents of GBP38.4m, a decrease of GBP10.8m on prior year.
Total cash and cash equivalents include client balances pertaining
to collection of any collateral and variation margin in addition to
routine operating cash balances. Of the GBP10.8m decrease in cash,
GBP3.9m corresponds to our investment in new premises and continued
investment in technology in support of growth plans. A further
GBP2.3m was returned to shareholders in line with our dividend
policy. The remaining GBP4.6m relates to movements in client
balances held.
Cash generation from the Group's revenues is a function of i)
the composition of revenues (spot, forward and option revenues) and
ii) the average duration of the FX forwards in the portfolio. To
date, Argentex has generated revenues in a ratio of approximately
50:50 between spot and forward contracts outside of options
revenues.
While spot FX contracts attract a smaller revenue spread, the
inherent risk profile is much reduced and cash is generated almost
immediately. As such, having this proportion of revenues generated
by spot trades with a minimal working capital cycle creates a
strong positive immediate cash flow for the Business compared to
its operating cost base.
Argentex continues to enjoy a high percentage of trades
converting to cash within a short time frame, which is a result of
almost 50% on average of trades being spot contracts in addition to
forward contracts carrying a relatively short tenor on average.
Although FX forward contracts carry a higher inherent risk than
spot contracts, the average tenor of a forward contract at Argentex
continues to be less than 5 months. As a result of the blend
between spot FX contracts and the average tenor of FX forward
contracts, Argentex is a highly cash generative business with much
of the portfolio generating cash in less than 5 months on average.
When combined with the cash flow profile of the spot FX contracts,
Argentex measures short-term cash return as follows:
2021 2020
GBPm GBPm
Revenues for the last 12 months (A) 28.1 28.9
-------------------------------------- ---------------- ------
Less
Revenues settling beyond 3 months (6.8) (7.5)
Net short-term cash generation (B) 21.3 21.4
-------------------------------------- ---------------- ------
Short-term cash return (B/A) 76% 74%
Portfolio composition
Argentex's client base continues to grow with an additional 665
new corporate clients signed up in 2021. Even when taking growth
into account however the composition of our client portfolio
remains consistent year-over-year in that it consists of similar
businesses with exposures in the major currencies of sterling, euro
and US dollar. At year end, over 80% if the Group's portfolio was
comprised of trades in those currencies and hence the Group's
exposure to exotic currencies or currencies with higher volatility
and less liquidity remains significantly limited.
Argentex has put in place a low risk approach to managing
collateral requirements with institutional counterparties to
mitigate significant volatility risk which, when coupled with a
selective and robust client acceptance process, has ensured that
Argentex continues to avoid any material issues over settlement. In
addition, as a result of a conservative approach to risk, Argentex
continues to enjoy immaterial occurrence of bad debt.
Dividend
The Board of Directors is recommending a final dividend for year
ended 31 March 2021 of 2p per share. Subject to approval at the
Annual General Meeting to be held at 2:30pm on the 4 August 2021,
the payment will be made on 13 September 2021 to shareholders on
the register at 13 August 2021.
Jo Stent
Chief Financial Officer
CONSOLIDATED STATEMENT OF PROFIT OR LOSS and other comprehensive
income for the year ended 31 March 2021
The Group moved to reporting in GBPm in FY21. In FY20, total
revenue was reported as GBP28,986,444 in the financial
statements.
Notes 2021 2020
GBPm GBPm
Revenue 6 28.1 29.0*
Cost of sales (0.5) (0.4)
Gross profit 27.6 28.6
Administrative expenses (18.9) (16.1)
Underlying operating profit 3.12 . 8.7 12.5
LLP equity-based remuneration pre-IPO - (1.7)
Non-underlying expenditure 9 (0.7) (0.5)
Share based payments 24 (0.2) -
----------------------------------------------------- ------------------ ------- -------
Operating profit 7 7.8 10.3
Finance costs 12 (0.4) (0.2)
Finance income 12 - 0.1
------- -------
Profit before taxation 7.4 10.2
Taxation 13 (1.5) (2.1)
Profit for the year 5.9 8.1
Other comprehensive income - -
Profit for the year and total comprehensive income 5.9 8.1
======= =======
Earnings per share
Basic 14 5.2p 7.1p
Diluted 14 5.2p 7.1p
Underlying - Basic 14 5.9p 8.8p
Underlying - Diluted 14 5.9p 8.8p
CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 31 March
2021
Notes 2021 2020
GBPm GBPm
Non-current assets
Intangible assets 15 1.7 1.8
Property, plant and equipment 16 9.1 0.2
Derivative financial assets 17 4.2 7.2
Total non-current assets 15.0 9.2
Current assets
Trade and other receivables 17 0.6 0.3
Cash and cash equivalents 18 38.4 49.2
Derivative financial assets 17 21.0 17.6
Total current assets 60.0 67.1
Current liabilities
Trade and other payables 19 (28.5) (36.5)
Derivative financial liabilities 19 (9.3) (10.9)
Total current liabilities (37.8) (47.4)
------- -------
Net current assets 22.2 19.7
Non-current liabilities
Trade and other payables 20 (5.9) -
Derivative financial liabilities 20 (2.6) (4.0)
Total non-current liabilities (8.5) (4.0)
------- -------
Net assets 28.7 24.9
======= =======
Equity
Share capital 22 0.1 0.1
Share premium account 23 12.7 12.7
Share option reserve 24 0.2 -
Merger reserve 23 4.5 4.5
Retained earnings 11.2 7.6
Total Equity 28.7 24.9
======= =======
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the period ended
31 March 2021
Share Share LLP equity Share Merger Retained Total
capital premium capital option reserve earnings equity
reserve
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Balance at 1 April
2019 - 3.1 - - - 3.1
--------- ---------- ----------- --------- --------- ---------- ----------
Comprehensive income
for
the year
Profit for the year - - - - - 8.1 8.1
--------- ---------- ----------- --------- --------- ---------- ----------
Total comprehensive
income
for the year - - - - - 8.1 8.1
Transactions with
owners:
-- Dividends
paid under
former
ownership
structure - - - - - (0.5) (0.5)
-- Merger
reserve arising
on
reorganisation - (3.1) - 4.5 - 1.4
-- Issue of
share capital 0.1 14.0 - - - - 14.1
-- Cost of issue
of equity
shares - (1.3) - - - - (1.3)
--
Balance at 31 March
2020 0.1 12.7 - - 4.5 7.6 24.9
--------- ---------- ----------- --------- --------- ---------- ----------
Comprehensive income
for
the year
Profit for the year - - - - - 5.9 5.9
--------- ---------- ----------- --------- --------- ---------- ----------
Total comprehensive
income
for the year - - - - - 5.9 5.9
Transactions with
owners:
-- Dividends
paid - - - - - (2.3) (2.3)
-- Share based
payments - - - 0.2 - - 0.2
Balance at 31 March
2021 0.1 12.7 - 0.2 4.5 11.2 28.7
--------- ---------- ----------- --------- --------- ---------- ----------
CONSOLIDATED STATEMENT OF CASH FLOWS for the year ended 31 March
2021
Notes 2021 2020
GBPm GBPm
Profit before taxation 7.4 10.2
Taxation paid (2.1) -
Net finance expense 0.4 -
Depreciation of property, plant and equipment 0.2 0.1
Depreciation of right of use assets 0.8 0.2
Amortisation of intangible assets 1.3 1.0
Share based payment expense 0.2 -
(Increase)/decrease in receivables (0.3) 0.1
(Decrease)/increase in payables (8.6) 16.9
Increase in derivative financial assets (0.4) (12.7)
(Decrease)/increase in derivative financial liabilities (3.0) 11.2
Net cash (used in)/generated from operating activities (4.1) 27.0
Investing activities
Purchase of intangible assets 15 (1.2) (1.1)
Purchases of plant and equipment 16 (2.7) (0.1)
Share acquisition costs - (0.1)
Net cash used in investing activities (3.9) (1.3)
-------- -------
Financing activities
Payments made in relation to lease liabilities 21 (0.5) (0.4)
Proceeds from issue of shares - 14.1
Short term loans 25 - (2.0)
Share issuance costs - (1.3)
Dividends paid 11 (2.3) (0.5)
Net cash (used in)/generated from financing activities (2.8) 9.9
-------- -------
Net (decrease)/increase in cash and cash equivalents (10.8) 35.6
Cash and cash equivalents at the beginning of the year 49.2 13.6
Cash and cash equivalents at the end of the year 18 38.4 49.2
1 General information
Argentex Group PLC ("the Company") is a public limited company,
limited by shares, incorporated and domiciled in England and Wales.
The address of the registered office is 25 Argyll Street, London,
W1F 7TU.
On 25 June 2019, the Company listed its shares on AIM, the
London Stock Exchange's market for small and medium size growth
companies ("the IPO").
The Company is the ultimate parent company into which the
results of all subsidiaries are consolidated. The Consolidated
Financial Statements for the years ended 31 March 2021 and 31 March
2020 comprise the financial statements of the Company and its
subsidiaries (together, "the Group").
The Consolidated Financial Statements are presented in Pounds
Sterling (GBP), which is the currency of the primary economic
environment in which the Group operates.
The financial information set out above does not constitute the
company's statutory accounts for 2021 or 2020. Statutory accounts
for the years ended 31 March 2021 and 31 March 2020 have been
reported on by the Independent Auditor. The Independent Auditor's
Report on the Annual Report and Financial Statements for 2021 and
2020 was unqualified, and did not contain a statement under 498(2)
or 498(3) of the Companies Act 2006.
The statutory accounts for the year ended 31 March 2021 will be
delivered to the Registrar of Companies in due course.
2 Adoption of new and revised standards
The Company has adopted the following amendments to standards
which became effective for the annual reporting period beginning on
1 April 2020. The amendments do not have a significant impact on
the Group's financial statements.
-- Amendments to References to the Conceptual Framework in IFRS Standards
-- Amendments to IFRS 3: Definition of a Business
-- Amendments to IAS 1 and IAS 8: Definition of Material
-- Amendments to IFRS 9, IAS 39 and IFRS 7: Interest Rate Benchmark Reform
No upcoming changes under IFRS are likely to have a material
effect on the reported results or financial position. Management
continue to monitor upcoming changes.
3 Significant accounting policies
The principal accounting policies are summarised below.
3.1 Basis of preparation
The Consolidated Financial Statements have been prepared in
accordance with international accounting standards in conformity
with the requirements of the Companies Act 2006..
The principal accounting policies adopted in the preparation of
the Consolidated Financial Statements are set out below. The
policies have been consistently applied to all of the years
presented, unless otherwise stated.
The Consolidated Financial Statements have been prepared under
the historical cost convention, modified by the measurement at fair
value of certain financial assets and liabilities and derivative
financial instruments as stated in note 3.6 .
3.2 Going concern
The Directors have a reasonable expectation that the Group has
adequate resources to continue in operational existence for the
foreseeable future and for at least one year from the approval date
of these Consolidated Financial Statements. The Group's principal
trading subsidiary, Argentex LLP, has been profitable since
inception in 2011, the Group has no external debt, and the LLP
continues to generate sufficient cash to support the activities of
the Group. Budgets and cash flow forecasts are prepared to cover a
variety of scenarios and are subsequently reviewed by the Directors
to ensure they support the Group's continuing ability to operate as
a going concern.
Sensitivity analysis has been performed in respect of specific
scenarios which could negatively impact the future performance of
the Group, including lower levels of revenue, compression in
profitability margins, extensions to the Group's working capital
cycle, and significant increases in volatility requiring further
collateral to be placed with the Group's institutional
counterparties.
In addition, the Directors have also considered mitigating
actions such as lower capital expenditure and other short-term cash
management activities within their control (see note 26.3 for
further disclosures relating to liquidity risk).
The Group has developed a set of financial measures designed to
flexibly mitigate the expected near term operational and financial
and longer term economic impact of the COVID-19 pandemic on the
Group.
The Board of Directors is confident that in context of the
Group's financial requirements these measures give sufficient
flexibility and liquidity to the Group to ensure that the Group can
withstand significant shocks, whilst remaining as a going concern
for the next twelve months from the date of approval of the
Directors' report and financial statements.
For these reasons, the Directors adopt the going concern basis
of accounting in preparing these financial statements.
3.3 Basis of consolidation
The Group financial statements incorporate the financial
statements of the Company and entities controlled by the Company
(its subsidiaries) prepared to 31 March each year. Control is
achieved where the Company is exposed to, or has the rights to,
variable returns from its involvement with the entity and has the
ability to affect those returns through its power over the entity.
In assessing control, the Group takes into consideration the
existence and effect of potential voting rights that currently are
exercisable or convertible.
The Consolidated Financial Statements comprise the Company and
the results, cash flows and changes in equity of the following
subsidiary undertakings:
Name of undertaking Nature of business Country of
incorporation
Argentex LLP Foreign exchange England
broking
-------------------------- ----------------
Argentex Capital Limited Holding company England
-------------------------- ----------------
Argentex Foreign Exchange Holding Company England
Limited
-------------------------- ----------------
Argentex B.V. Inactive pending Netherlands
regulatory authorisation
-------------------------- ----------------
All subsidiary undertakings are owned 100% either directly or
indirectly.
Where necessary, adjustments are made to the financial
statements of subsidiaries to bring the accounting policies used
into line with those used by the Group.
All intra-group transactions and balances and any unrealised
gains and losses arising from intra-group transactions are
eliminated in preparing the Consolidated Financial Statements.
3.4 Accounting for merger on formation of the Group
In June 2019, immediately prior to the Company's admission to
AIM, Argentex Group PLC acquired all equity interests in Argentex
LLP. This was effected through the acquisition of equity interests
by a newly formed subsidiary, Argentex Capital Limited, and the
acquisition of Pacific Foreign Exchange Limited (now Argentex
Foreign Exchange Limited). Argentex LLP, Argentex Capital Limited
and Argentex Foreign Exchange Limited are 100% owned (either
directly or indirectly) subsidiaries of Argentex Group PLC and
consolidated into these financial statements.
In applying merger accounting when preparing these Consolidated
Financial Statements, to the extent the carrying value of the
assets and liabilities acquired under merger accounting is
different to the cost of investment, the difference is recorded in
equity within the merger reserve.
3.5 Revenue recognition
Revenue represents the difference between the cost and selling
price of currency and is recognised after receiving the client's
authorisation to undertake a foreign exchange transaction for
immediate or forward delivery. Derivative assets and liabilities
are initially measured at fair value at the date the derivative
contract is entered into and are subsequently remeasured to fair
value at each financial period end date. The resulting gain or loss
is recognised within revenue immediately.
The difference between the costs and selling price of currency
is recognised as revenue as this reflects the consideration to
which the Group expects to be entitled in exchange for those
services.
In relation to currency options, the Group recognises the net
option premium receivable as revenue on the date that the option is
executed. (See note 6 ).
3.6 Financial instruments
The Group operates as a riskless principal deliverable foreign
exchange broker therefore financial instruments are significant to
its financial position and performance.
3.6.1 Initial recognition
Financial assets and financial liabilities are recognised when
the Group becomes a party to the contractual provisions of the
instrument.
Financial assets and financial liabilities are initially
measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and financial
liabilities at fair value through profit or loss) are added to or
deducted from the fair value of the financial assets or financial
liabilities, as appropriate, on initial recognition. Transaction
costs directly attributable to the acquisition of financial assets
or financial liabilities at fair value through profit or loss are
recognised immediately in profit or loss.
3.6.2 Derivative financial instruments
Forward foreign exchange contracts and foreign exchange options
are classified as financial assets and liabilities at FVTPL.
Derivative assets and liabilities are initially measured at fair
value at the date the derivative contract is entered into and are
subsequently remeasured to fair value at each financial period end
date. The resulting gain or loss is recognised within revenue
immediately. The Group does not apply hedge accounting.
A derivative with a positive fair value is recognised as a
financial asset, whereas a derivative with a negative fair value is
recognised as a financial liability. When there is a legally
enforceable right to offset the recognised amounts and an intention
to settle the amounts on a net basis (or realise the asset and
settle the liability immediately), financial assets and liabilities
are offset. The net amount only is then reported in the
Consolidated Statement of Financial Position.
The fair value of forward currency contracts is based on their
observable bid and offer prices in the foreign exchange marketplace
requiring no significant adjustment.
3.6.3 Foreign exchange gains and losses on derivative financial asset and liabilities
Assets and liabilities are measured at their fair value based on
the transaction price agreed with the customer or counterparty and
their observable fair value in the foreign exchange market, and any
assets or liabilities in a foreign currency are revalued at the
balance sheet date. Management consider the potential impact of
exchange rate movements on positions held to be immaterial as
substantially all of the Group's positions are fully hedged with a
number of counterparty banks.
3.6.4 Derecognition of derivative financial asset and liabilities
The Group derecognises derivative financial assets and
liabilities when they reach maturity and the contractual cashflows
are exchanged between the client and the Group or the Group and the
institutional counterparty. At this point, the assets and
liabilities have expired and the obligations of the Group, the
client and the institutional counterparty have been discharged.
3.6.5 Amortised cost and effective interest method
The effective interest method is a method of calculating the
amortised cost of a financial liability or debt instrument and of
allocating interest income over the relevant period.
The effective interest rate is the rate that exactly discounts
estimated future cash receipts or payments (including all fees and
points paid or received that form an integral part of the effective
interest rate, transaction costs and other premiums or discounts)
excluding expected credit losses, through the expected life of the
financial asset or liability.
The Group has not purchased or originated any credit-impaired
financial assets.
3.6.6 Classification of financial assets
Recognised financial assets within the scope of IFRS 9 are
required to be classified as subsequently measured at amortised
cost, fair value through other comprehensive income (FVTOCI) or
fair value through profit or loss (FVTPL) on the basis of both the
Group's business model and the contractual cash flow
characteristics of the financial assets.
3.6.7 Financial assets at FVTPL
Forward foreign exchange contracts and foreign exchange options
are measured at FVTPL (see note 26).
Other financial assets that do not meet the criteria for being
measured at amortised cost or FVTOCI are measured at FVTPL (see
note 27).
Fair value is determined in the manner described in note 27.
3.6.8 Other financial assets
All regular way purchases or sales of financial assets are
recognised and derecognised on a trade date basis. Regular way
purchases or sales are purchases or sales of financial assets that
require delivery of assets within the time frame established by
regulation or convention in the marketplace.
All recognised financial assets are subsequently measured in
their entirety at either amortised cost or fair value, depending on
the classification of the financial assets.
3.6.9 Impairment of financial assets
The Group recognises impairment on an Expected Credit Loss (ECL)
basis, using historical and forward-looking information. The only
financial assets at amortised cost that this applies to are Other
Debtors.
3.6.10 Derecognition of other financial assets
The Group derecognises a financial asset only when the
contractual rights to the cash flows from the asset expire, or when
it transfers the financial asset and substantially all the risks
and rewards of ownership of the asset to another party.
On derecognition of a financial asset measured at amortised
cost, the difference between the asset's carrying amount and the
sum of the consideration received and receivable is recognised in
profit or loss.
3.6.11 Classification of financial liabilities
Financial liabilities are classified as either financial
liabilities at FVTPL or other financial liabilities.
3.6.12 Financial liabilities at FVTPL
Financial liabilities are classified as at FVTPL when the
financial liability is designated as at FVTPL. Derivative financial
liabilities are automatically held at FVTPL.
Financial liabilities at FVTPL are stated at fair value with any
gains or losses arising on changes in fair value recognised in
profit or loss to the extent that they are not part of a designated
hedging relationship.
Fair value is determined in the manner described in note 27.
3.6.13 Other Financial liabilities
Other financial liabilities are subsequently measured at
amortised cost using the effective interest method.
The Group holds amounts payable to customers at amortised cost.
These are short term balances that do not attract interest.
3.6.14 Derecognition of other financial liabilities
The Group derecognises financial liabilities when, and only
when, the Group's obligations are discharged, cancelled or they
expire. The difference between the carrying amount of the financial
liability derecognised and the consideration paid and payable,
including any non-cash assets transferred or liabilities assumed,
is recognised in profit or loss.
3.7 Cash and cash equivalents
For the purpose of presentation in the Consolidated Statement of
Cash Flows, cash and cash equivalents includes cash on hand or
deposits held at call with financial institutions.
3.8 Leases
At inception of a contract the Group assesses whether a contract
is, or contains a lease. A contract is, or contains, a lease if the
contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration. To assess
whether a contract conveys the right to control the use of the
identified asset the Group considers whether:
1. The Group has the right to operate the asset
2. The Group designed the asset in a way that predetermines how
and for what purpose it will be used.
Lease liabilities are measured at the present value of the
contractual payments due to the lessor over the lease term, with
the discount rate determined by reference to the rate inherent in
the lease unless this is not readily determinable, in which case
the Group's incremental borrowing rate on commencement of the lease
is used. It is remeasured when there is a change in future lease
payments arising from a change in rate, if there is a change in the
Group's estimate of the amount expected to be payable under a
residual value guarantee or if the Group changes its assessment of
whether it will exercise a purchase, extension or termination
option.
When the lease liability is remeasured in this way, either a
corresponding adjustment is made to the carrying amount of the
right of use asset and the revised carrying amount is amortised
over the remaining (revised) lease term, or it is recorded in
profit and loss if the carrying amount of the right to use assets
has been reduced to zero.
Right of use assets are initially measured at the amount of the
lease liability.
Subsequent to initial measurement, lease liabilities increase as
a result of interest charged at a constant rate on the balance
outstanding and are reduced for lease payments made. Right of use
assets are amortised on a straight-line basis over the remaining
term of the lease or over the remaining economic life of the asset
if judged to be shorter than the lease term.
3.9 Intangible assets and amortisation
Identifiable intangible assets are recognised when the Group
controls the asset, it is probable that future economic benefits
attributed to the asset will flow to the Group and the cost of the
asset can be reliably measured.
Software development costs comprise the Group's bespoke dealing
system. Costs that are directly associated with the production of
identifiable and unique dealing system controlled by the Group, and
are probable of producing future economic benefits, are recognised
as intangible assets. Direct costs of software development include
employee costs and directly attributable overheads.
Costs are capitalised to the extent that they represent an
improvement, enhancement or update to the intangible asset.
Maintenance costs are expensed through the Income Statement.
Amortisation is charged to the income statement over the
estimated useful live of three years of the dealing system from the
date developments are available for use, on a straight-line
basis.
The amortisation basis adopted reflects the Group's consumption
of the economic benefit from that asset.
3.10 Property, plant and equipment
Property, plant and equipment are stated at cost less
accumulated depreciation and any
recognised impairment loss.
Depreciation is charged so as to write off the cost of assets to
their residual values, over their estimated useful lives, using the
straight-line method, on the following bases:
Office equipment - Three to five years
Computer equipment - Three years
Leasehold improvements - Over the period of the lease
Right of use assets - Over the period of the lease
The assets' residual values and useful lives are reviewed, and
adjusted if appropriate, at the end of each reporting period.
3.11 Foreign currencies
Non-derivative monetary assets and liabilities in foreign
currencies are translated into sterling at the rates of exchange
ruling at the balance sheet date. Transactions in foreign
currencies are translated into sterling at the rate of exchange
ruling at the date of the transaction. Exchange differences are
taken into account in arriving at the operating profit.
3.12 Underlying operating profit
The Group presents underlying operating profit as an Alternative
Performance Measure on the face of the Consolidated Statement of
Comprehensive Income. Underlying operating profit excludes those
significant items of income and expense which, because of the
nature and expected infrequency of the events giving rise to them,
merit separate presentation to allow shareholders to better
understand the elements of financial performance in the year so as
to facilitate comparison with prior years and to better assess
trends in financial performance.
3.13 Employee benefits
(i) Short term benefits
Short term employee benefits including holiday pay and annual
bonuses are accrued as services are rendered.
(ii) Defined contribution pension plans
The Group operates a defined contribution pension plan for its
employees. A defined contribution plan is a pension plan under
which the Group pays fixed contributions into a separate entity.
Once the contributions have been paid the Group has no further
payment obligations. The contributions are recognised as an expense
when they are due. Amounts not paid are shown in accruals in the
balance sheet. The assets of the plan are held separately from the
Group in independently administered funds.
3.14 LLP Members' remuneration
LLP Members' remuneration is determined by reference to the
nature of the participation of rights of Members of Argentex LLP,
the Group's main trading subsidiary. It includes both remuneration
where there is a contract of employment and any profits that are
automatically divided between members by virtue of the members'
agreement, to the extent that the Group does not have an
unconditional right to avoid payment. To the extent that these
profits remain unpaid at the year end, they are shown as
liabilities in the Consolidated Statement of Financial Position.
Prior to the IPO, corporate and individual members of the LLP
participated in the profits of the LLP through both income
interests and residual profit sharing arrangements following the
allocation of all income interests. After the IPO, no individual
member of the LLP has any equity interest or rights to divisions of
profits other than their individual income interests, and all
equity profit shares are now allocated to the intermediate
subsidiaries of the Group in accordance with their equity
interests.
3.15 LLP Members' interests
LLP equity capital is only repaid to outgoing members in
accordance with the provision in the Members' Deed where the Group
has both sufficient capital for FCA regulatory requirements, and
the capital is replaced by new capital contributions from existing
or new members. As such it is accounted for as equity.
Other amounts due to Members classified as a liability relate to
undistributed profits and Members' taxation reserves.
3.16 Share based payments
The cost of share-based employee compensation arrangements,
whereby employees receive remuneration in the form of share
options, is recognised as an employee benefit expense in the
Consolidated Statement of Profit or Loss. Where the entity settling
the share options differs from the entity receiving the benefit of
the share options (in the form of employee services), the entity's
separate financial statements reflect the substance of the
arrangement.
The total expense to be apportioned over the vesting period of
the benefit is determined by reference to the fair value (excluding
the effect of non market-based vesting conditions) at the date of
grant.
The total expense to be apportioned over the vesting period of
the benefit is determined by reference to the fair value (excluding
the effect of non market-based vesting conditions, if present) at
the date of grant. At the end of each reporting period the
assumptions underlying the number of awards expected to vest are
adjusted for the effects of non market-based vesting conditions to
reflect the conditions prevailing at that date. The impact of any
revisions to the original estimates is recognised in the
Consolidated Statement of Profit or Loss, with a corresponding
adjustment to equity. Fair value is measured by the use of a
Black-Scholes option pricing model.
When share options are exercised, the Company issues new shares.
The proceeds received net of any directly attributable transaction
costs are credited to share capital (nominal value) and share
premium.
3.17 Taxation
The tax expense represents the sum of the tax currently payable
and any deferred tax.
Tax currently payable is based on taxable profit for the year.
Taxable profit may differ from net profit as reported in the
Consolidated Statement of Profit or Loss as it may exclude items of
income or expense that are taxable or deductible in other years and
it further excludes items that are never taxable or deductible. The
Group's liability for current tax is calculated using tax rates
that have been enacted or substantively enacted at the date of the
Consolidated Statement of Financial Position.
4 Critical accounting judgements and key sources of estimation uncertainty
The Group makes estimates and assumptions concerning the future.
The resulting accounting estimates will by definition, seldom equal
the related actual results. The estimates and assumptions that have
a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year
are discussed below.
4.1 Accounting judgements
(i) Capitalisation of costs to intangible assets
The extent to which costs should be capitalised to intangible
assets. The Group capitalise costs as intangible assets if they
have a value that will benefit the performance of the Group over
future periods. To assist in making this judgement, the Group
undertakes an assessment, at least annually, of the carrying value
of the intangible assets.
(ii) Basis for consolidation and application of IFRS 3 - Business combinations
Management's judgement of the most appropriate policy for
recognising the merger and group formation and basis for
consolidation has been documented in note 3.4.
4.2 Key sources of estimation uncertainty
(i) Useful economic life of intangible assets (see note 15)
Technology within the financial services sector is in a
perpetual state of development and evolution, providing uncertainty
over the useful economic life of the Group's bespoke dealing
system.
(ii) Expected credit losses (see note 26)
Expected credit losses include forward looking estimates which
represent management's best estimate of the future performance of
the Group's financial assets.
(iii) Share-based payments
In determining the fair value of equity-settled share-based
payments and the related charge to the Consolidated Statement of
Profit or Loss, the Group makes assumptions about future events and
market conditions. An estimate must be formed as to the likely
number of shares that will vest along with the fair value of each
award granted. The Group uses the Black-Scholes valuation model to
determine the fair value, which is dependent on estimates relating
to the Group's future dividend policy, the timing of prospective
option exercises and the future volatility in the price of the
Company's shares.
5 Segment reporting
The Directors consider that the Group consists of a single
operating segment (being Argentex LLP's foreign currency dealing
business) and that it operates in a market that is not bound by
geographical constraints.
There is no reliance on an individual customer and no customer
contributed to more than 10 per cent. of revenues in the year ended
31 March 2021 or 31 March 2020.
6 Revenue
2021 2020
An analysis of the Group's revenue is GBPm GBPm
as follows:
Continuing operations
Spot and forward foreign exchange contracts 27.2 27.1
Option premiums 0.9 1.9
28.1 29.0
7 Operating profit
Operating profit for the period is stated 2021 2020
after charging: GBPm GBPm
Depreciation of plant and equipment 0.2 0.4
Depreciation of Right of Use assets 0.8 -
Amortisation of intangibles 1.3 1.0
Staff costs (see note 10) 12.6 12.6
Net foreign exchange losses/(gains) 0.5 0.1
8 Auditor's remuneration
2021 2020
GBPm GBPm
Fees payable to the Company's auditor
and its associates for services to the
Group:
* The audit of financial statements of the company and
subsidiaries 0.1 0.1
* Reporting accountant services - 0.1
9 Non-underlying expenditure
The Directors have classified certain costs as non-underlying in
accordance with the accounting policy set out in note Error!
Reference source not found. . These costs amount to GBP0.7m (2020:
GBP0.5m) and for 2021 relate to: i) costs related to moving the
Group's headquarters which are ineligible for capitalisation; ii)
staff costs in relation to Director changes in the Company and iii)
costs related to the creation of and regulatory applications for
overseas operations. In 2020, non-underlying expenditure related to
costs associated with the Group's IPO which were ineligible for
capitalisation.
10 Staff costs
The average number of employees employed by the Group, including executive and non-executive
directors, was:
2021 2020
Number Number
Directors 8 8
LLP members (excl. executive directors) 4 6
Sales and dealing 37 28
Operations 18 12
67 54
2021 2020
GBPm GBPm
Staff costs for the above persons were:
Wages and salaries 7.2 5.1
Social security costs 0.9 0.7
Pension costs 0.1 -
Share based payments 0.2 -
LLP members' remuneration* 3.2 4.0
Directors remuneration 1.0 2.8
12.6 12.6
Directors' remuneration
2021 2020
GBPm GBPm
Directors' remuneration comprised:
Salaries and LLP members remuneration 1.0 2.8
*Excludes Directors of Argentex Group PLC who are/were also members of Argentex LLP. 2020
figures include former members of Argentex LLP who are no longer members after IPO.
Prior to IPO, profits from Argentex LLP were distributed according to individual equity holdings
in the LLP. Following Admission, the self-employed LLP members who are members of the LLP
Executive Committee will be remunerated under the Amended and Restated LLP Agreement by a
combination of (i) fixed annual remuneration (ii) participation in revenue commission schemes
(iii) annual bonuses and (iv) other variable compensation based on the LLPs performance.
Key management are those persons having authority and responsibility for planning, controlling
and directing the activities of the Group, or in relation to the Company, the Company. In
the opinion of the Board, the Group and Company's key management are the Directors of Argentex
Group plc. Information regarding their compensation is provided in the Remuneration Committee
report.
11 Dividends
2021 2020
GBPm GBPm
Amounts recognised as distributions to equity holders:
Dividends declared under the former ownership structure(1) - 0.5
Interim dividend declared of 2p per share(2) 2.3 -
1: paid to former equity holders pre-IPO
2: paid in September 2020
12 Finance costs and finance income
2021 2020
GBPm GBPm
Interest on short term loans - 0.2
Interest on lease arrangements 0.4 -
Finance Costs 0.4 0.2
Finance Income - 0.1
Total interest income for financial assets that are not at fair value through profit or loss
is equal to the amount of bank interest receivable disclosed as finance income above.
Total interest expense for financial liabilities that are not at fair value through profit
or loss is equal to the amount of interest payable disclosed above.
13 Taxation
2021 2020
GBPm GBPm
Current tax
In respect of the current year 1.5 2.1
Total tax expense for the year 1.5 2.1
Tax has been calculated using an estimated annual effective tax rate of 19% (2020: 19%) on
profit before tax.
The difference between the total tax expense shown above and the amount calculated by applying
the standard rate of UK corporation tax to the profit before tax is as follows:
2021 2020
GBPm GBPm
Profit before taxation 7.4 10.2
Tax on profit on ordinary activities at standard UK corporation tax rate of 19% 1.4 1.9
Effects of:
Disallowable management expenses - 0.1
Other amounts charged 0.1 0.1
Total tax expense for the year 1.5 2.1
14 Earnings per share
The Group calculates basic earnings to be net profit
attributable to equity shareholders for the period. The Group also
calculates an underlying earnings figure, which excludes the
effects of share based payments, and non-underlying costs as
described further in note Error! Reference source not found. . The
Group has also excluded profits earned and fully distributed to
former equity holders prior to the IPO. A tax adjustment is also
reflected to include a representative tax figure for profits which
would have consequently incurred a corporation tax charge.
2021 2020
GBPm GBPm
Earnings
Earnings for the purposes of basic and diluted earnings per share
- basic and diluted 5.9 8.1
Adjustments for:
Non-underlying expenditure 0.7 0.5
LLP equity-based remuneration pre-IPO - 1.7
Shared based payments 0.2 -
Tax impact (0.1) (0.3)
Underlying earnings (basic and diluted) 6.7 10.0
Number of shares
Weighted average number of ordinary shares for the purposes of basic earnings per share 113.2 113.2
Number of dilutive shares under option 0.1 0.2
Weighted average number of ordinary shares for the purposes of dilutive earnings per share 113.3 113.4
------- -------
Earnings per share
Basic 5.2p 7.1p
Diluted 5.2p 7.1p
Underlying - Basic 5.9p 8.8p
Underlying - Diluted 5.9p 8.8p
The calculation of diluted earnings per share assumes conversion of all potentially dilutive
ordinary shares, all of which arise from share options. A calculation is performed to determine
the number of share options that are potentially dilutive based on the number of shares that
could have been acquired at fair value, considering the monetary value of the subscription
rights attached to outstanding share options.
15 Intangible fixed assets
Software
development
costs
GBPm
Cost
At 1 April 2019 3.4
Additions 1.1
At 31 March 2020 4.5
Additions 1.2
At 31 March 2021 5.7
Amortisation
At 1 April 2019 1.7
Charge for year 1.0
At 31 March 2020 2.7
Charge for year 1.3
At 31 March 2021 4.0
Net book value
At 31 March 2021 1.7
At 31 March 2020 1.8
16 Property, plant and equipment
Leasehold Right of use Office equipment Computer equipment Total
improvements Asset
GBPm GBPm GBPm GBPm GBPm
Cost
At 1 April 2019 0.4 1.2 0.2 0.3 2.1
Additions - - - 0.1 0.1
At 31 March
2020 0.4 1.2 0.2 0.4 2.2
Additions 1.7 7.2 0.6 0.4 9.9
Disposals (0.4) (1.2) (0.2) (0.2) (2.0)
At 31 March
2021 1.7 7.2 0.6 0.6 10.1
Depreciation
At 1 April 2019 0.3 0.9 0.2 0.2 1.6
Charge for the
year 0.1 0.2 - 0.1 0.4
At 31 March
2020 0.4 1.1 0.2 0.3 2.0
Charge for the
year 0.1 0.8 - 0.1 1.0
Disposals (0.4) (1.2) (0.2) (0.2) (2.0)
At 31 March
2021 0.1 0.7 - 0.2 1.0
Net book value
At 31 March
2021 1.6 6.5 0.6 0.4 9.1
At 31 March
2020 - 0.1 - 0.1 0.2
17 Trade and other receivables
2021 2020
GBPm GBPm
Non-Current
Derivative financial assets at fair value (note 26 ) 4.2 7.2
Current
Derivative financial assets at fair value (note 26 ) 21.0 17.6
Other debtors 0.1 0.1
Prepayments 0.5 0.2
Trade and other receivables 0.6 17.9
The Group always measures the loss allowance for other
receivables at an amount equal to 12 month ECL. If there is a
significant increase in credit risk, credit losses are recognised
on the lifetime ECL basis. The expected credit losses on other
receivables are estimated using a provision matrix by reference to
past default experience of the debtor and an analysis of the
debtor's current financial position, adjusted for factors that are
specific to the debtors, general economic conditions of the
industry in which the debtors operate and an assessment of both the
current as well as the forecast direction of conditions at the
reporting date.
The Group writes off receivables when there is information
indicating that the debtor is in severe financial difficulty and
there is no realistic prospect of recovery, e.g. when the debtor
has been placed under liquidation or has entered into bankruptcy
proceedings, or when the receivables are over two years past due,
whichever occurs earlier.
18 Cash and cash equivalents
2021 2020
GBPm GBPm
Cash and cash equivalents 38.4 49.2
Included within cash and cash equivalents are client held funds relating to margins received
and client balances payable (See note 19). Client balances held as electronic money in accordance
with the Electronic Money Regulations 2011 are held in accounts segregated from the firm's
own bank accounts in authorised credit institutions. Cash includes cash held as collateral
with banking and brokerage counterparties of GBP11.6m (2020: GBP26.5m). Of this collateral
amount, GBP0.1m (2020: GBP1.1m) is not immediately accessible.
The Directors consider that the carrying amount of these assets is a reasonable approximation
of their fair value. Cash is held at authorised credit institutions and non-bank financial
institutions with robust credit ratings (where published) and sound regulatory capital resources.
19 Trade and other payables
2021 2020
GBPm GBPm
Derivative financial liabilities at fair value (note 26 ) 9.3 10.9
Amounts payable to clients 18.7 25.5
Other creditors 0.7 0.6
Corporation tax 1.5 2.1
Amounts due to members and former members of Argentex LLP 3.8 5.3
Accruals 2.3 2.8
Other taxation and social security 0.3 0.2
Lease liability (note 21 ) 1.2 -
T rade and other payables 28.5 36.5
20 Creditors: amounts falling due after more than one year
2021 2020
GBPm GBP
Derivative financial liabilities at fair
value (note 26 ) 2.6 4.0
Provisions 0.2 -
Lease liability (note 21 ) 5.7 -
T rade and other payables 5.9 -
21 Leases
The Group leases its office space. During the year, the Group's
existing lease on its primary office space concluded, and the Group
entered into a new ten-year lease. As a lessee, the Group has
recognised a lease liability representing the present value of the
obligation to make lease payments, and a related right of use (ROU)
asset, in accordance with note 3.8 . The rate implicit in the lease
is not evident and so the Group's incremental borrowing rates have
been used. The incremental rate referred to by IFRS 16 indicates
the rate of interest that a lessee would have to pay to borrow over
a similar term, and with a similar security, the funds necessary to
obtain an asset of a similar value to the ROU asset in a similar
economic environment. Management have assessed the incremental
borrowing rate to be 6%. The lease gives rise to a right of use
asset (note 16 ), and a corresponding lease liability. Information
about the lease liability is presented below:
2021 2020
GBPm GBPm
Lease Liability at 1 April - 0.4
Additions 7.0
Payments made in the year (0.5) (0.4)
Unwinding of finance costs 0.4 -
Lease Liability at 31 March 6.9 -
Of which
Current (note 19) 1.2 -
Non-current (note 20) 5.7 -
22 Share Capital
Ordinary Management Nominal
shares shares value
Allotted and paid up No. No. GBPm
At 1 April 2020 and 31 March
2021 113,207,547 23,589,212 0.1
On 19 June 2019, 23,589,212 Management shares were issued with
nominal value of GBP58,974 to establish the minimum allotted share
capital for a public limited company. So long as there are shares
of any other class is issue, Management shares have no voting
rights or rights to receive dividends or other distributions of
profit.
On 25 June 2019, 113,207,547 Ordinary shares of GBP0.0001 each
were issued for trading on AIM at a price of 106p per share.
100,000,000 shares were issued to the former owners of Argentex LLP
as part of the Group formation outlined in note 3.4. Subsequently,
the Company issued 13,207,547 at 106p per share, generating share
premium of GBP13,988,679 before issuance costs.
23 Reserves
Details of the movements in reserves are set out in the
Consolidated Statement of Changes in Equity. A description of each
reserve is set out below.
Share premium
The share premium account is used to record the aggregate amount
or value of premiums paid in excess of the nominal value of share
capital issued, less deductions for issuance costs. Where an equity
issuance is accounted for using merger relief, no share premiums
are recorded.
Merger reserve
The merger reserve represents the difference between carrying
value of the assets and liabilities acquired under merger
accounting to the cost of investment (the fair value).
Share Option reserve
The Group operates a share option scheme that is explained in
note 24 of these Consolidated Financial Statements. The Group
recognises the services received from eligible scheme participants
as charge through the Consolidated Statement of Profit or Loss,
with the corresponding entry credited to the Share option
reserve.
Retained earnings
Retained earnings are the accumulated undistributed profits of
the Group that have been recognised through the Consolidated
Statement of Profit or Loss, less amounts distributed to
shareholders.
24 Share based payments
The cost of group share-based employee compensation
arrangements, whereby employees receive remuneration in the form of
share options, is recognised as an employee benefit expense in the
statement of profit or loss. Where the entity settling the share
options differs from the entity receiving the benefit of the share
options (in the form of employee services), the entity's separate
financial statements reflect the substance of the arrangement.
The total expense to be apportioned over the vesting period of
the benefit is determined by reference to the fair value (excluding
the effect of non market-based vesting conditions) at the date of
grant.
At the end of each reporting period the assumptions underlying
the number of awards expected to vest are adjusted for the effects
of non market-based vesting conditions to reflect the conditions
prevailing at that date. The impact of any revisions to the
original estimates is recognised in the statement of profit or
loss, with a corresponding adjustment to equity. Fair value is
measured by the use of a Black-Scholes option pricing model.
When share options are exercised, the Group issues new
shares.
In June 2019, the Company issued 311,311 share options under
Part I of an approved company share option plan ("CSOP") to
participating employees. The share options have an exercise price
of GBP1.06, being the IPO issue price, and vest three years after
issuance. The fair value of these options at issuance has been
derived using a Black-Scholes model, with expected volatility of
30%, based on derived volatilities of the AIM index and the similar
listed entities to the Company. The risk free rate at the time of
issuance was 0.54% for UK Government Bonds with a similar term to
the vesting period of the CSOP.
During the year, the Company issued a total of 4,981,130 share
options under Parts I, II and III of the company share option plan
("CSOP") to participating employees and LLP members. The share
options have an exercise price of GBP1.35, and vest in tranches
three, four and five years after issuance. The fair value of these
options at issuance has been derived using a Black-Scholes model,
with expected volatility of 34%, based on derived volatilities of
the Company and the similar listed entities to the Company. The
risk free rate at the time of issuance was 0.12% for UK Government
Bonds with a similar term to the vesting period of the CSOP.
The Group has recognised a total expense of GBP0.2m based on the
estimated number of share options expected to vest across all parts
of the CSOP.
Movements in the number of outstanding share options during the
year and their weighted average exercise prices are shown in the
following table:
2021 2020
-----------------------
Average Number of Average Number of
exercise options exercise options
price outstanding price outstanding
(GBP) (GBP)
--------------------- ----------------------- --------------------- -----------------------
At 1 April 1.06 226,408 - -
--------------------- ----------------------- --------------------- -----------------------
Granted 1.35 4,981,130 1.06 311,311
--------------------- ----------------------- --------------------- -----------------------
Forfeited 1.35 (452,830) 1.06 (84,903)
--------------------- ----------------------- --------------------- -----------------------
Exercised - - - -
--------------------- ----------------------- --------------------- -----------------------
31 March 1.34 4,754,708 1.06 226,408
--------------------- ----------------------- --------------------- -----------------------
25 Net Debt Reconciliation
2021 2020
GBPm GBPm
Cash and Cash Equivalents 38.4 49.2
Lease liabilities - repayable within (1.2) -
one year
Lease liabilities - repayable after one (5.7) -
year
Net funds 31.5 49.2
Cash and Cash Equivalents 38.4 49.2
Total Debt - Fixed Interest Rates (6.9) -
Net funds 31.5 49.2
Cash Leases due Leases due
within 1 after 1 year
year Borrowings Total
GBPm GBPm GBPm GBPm GBPm
Net funds/(debt)
at 1 April 2019 13.6 (0.3) (0.1) (2.0) 11.2
Cash flows 35.6 0.4 - 2.0 38.0
Other non-cash changes - (0.1) 0.1 - -
Net funds/(debt)
at 31 March 2020 49.2 - - - 49.2
Cash flows (10.8) 0.5 - - (10.3)
Other non-cash changes - (1.7) (5.7) - (7.4)
Net funds/(debt)
at 31 March 2021 38.4 (1.2) (5.7) - 31.5
26 Financial instruments
The Directors have performed an assessment of the risks
affecting the Group through its use of financial instruments and
believe the principal risks to be: capital risk; credit risk;
market risk, including interest rate risk and foreign exchange
risk.
26.1 Capital management
The Group manages its capital to ensure that entities in the
Group will be able to continue as going concerns while maximising
the return. Capital is repayable in accordance with the terms set
out in the partnership agreement. Management regularly review the
adequacy of the Group's capital. The level of capital is in excess
of the capital requirement set by the Financial Conduct
Authority.
26.2 Categories of financial instruments
The Group operates as a deliverable foreign exchange broker
therefore financial instruments are significant to its financial
position and performance. Where the partnership enters into a
foreign exchange contract for a client, a matching deal is
immediately executed with one of the Group's institutional
counterparties.
The table below sets out the Group 's financial instruments by
class.
2021 2020
GBPm GBPm
Derivative financial assets 25.2 24.8
Other debtors 0.1 0.1
Derivative financial liabilities (11.9) (14.9)
Amounts payable to clients (18.7) (25.5)
Other creditors (0.7) (0.6)
Amounts due to members and former members
of Argentex LLP (3.8) (5.3)
Accruals (2.3) (2.8)
Provisions (0.2) -
Lease liabilities (6.9) -
(32.6) (34.2)
26.3 Financial risk management objectives
The Group's principal risk management objective is to avoid
financial loss and manage the Group's working capital requirements
to continue in operations.
Market risk
Market risk for the Group comprises foreign exchange risk and
interest rate risk.
Foreign exchange risk is mitigated through the matching of
foreign currency assets and liabilities between clients and
institutional counterparties which move in parity. The Group
maintains non-sterling currency balances with institutional
counterparties only to the extent necessary meet its immediate
obligations with those institutional counterparties.
Foreign exchange risk - sensitivity analysis
The Group's significant cash balances other than those
denominated in Pounds sterling are foreign currency balances held
in Euros and US Dollars.
The table below shows the impact on the Group's operating profit
of a 10% change in the exchange rate of euros and US dollars
against pounds sterling.
At 31 March 2021 2020
GBPm GBPm
10% weakening in the GBPEUR exchange
rate 0.6 0.7
10% strengthening in the GBPEUR exchange
rate (0.5) (0.6)
10% weakening in the GBPUSD exchange
rate 0.3 0.2
10% strengthening in the GBPUSD exchange
rate (0.3) (0.2)
Interest rate risk affects the Group to the extent that forward
foreign exchange contracts and foreign exchange options have an
implied interest rate adjustment factored into their price, which
is subject to volatility. This risk is mitigated in the same way as
foreign currency risk. The Group's short term loan had fixed rate
of interest, limiting any exposure to interest rate risk. This loan
was fully repaid during the year.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to
meet its financial obligations as they fall due. The Group has
extensive controls to ensure that is has sufficient cash or working
capital to meet the cash requirements of the Group in order to
mitigate this risk. The Group monitors its liquidity requirement
daily, and the Group stress tests its liquidity position to review
the sufficiency of its liquidity in stressed market scenarios. It
is management's responsibility to set appropriate limits to the
liquidity risk appetite of the Group, as well as ensuring that a
robust system of internal controls is implemented and enforced (see
the Group's going concern policy in note 3.2).
Credit risk
The failure of a client to settle a contracted trade carries the
risk of loss equal to the prevailing fair value of the trade.
Argentex employs rigorous procedures and ongoing monitoring to
ensure that client risk exposures fit within the Group's risk
appetite.
Management review financial and regulatory disclosures of the
Group's institutional counterparties to ensure its cash balances
and derivative assets are maintained with creditworthy financial
institutions. The Group does not have any significant concentration
of exposures within its client base. At institutional counterparty
level, trade volumes and trading cash balances are concentrated to
a small selection of institutional counterparties. A degree of
concentration is necessary for the Group to command strong pricing
and settlement terms with these institutions and is not considered
a material risk to the Group.
26.4 Overview of the Group's exposure to credit risk
Credit risk refers to the risk that a counterparty will default
on its contractual obligations resulting in financial loss to the
Group. As at 31 March 2021, the Group's maximum exposure to credit
risk without taking into account any collateral held or other
credit enhancements, which will cause a financial loss to the Group
due to failure to discharge an obligation by the counterparties
arises from :
-- the carrying amount of the respective recognised financial
assets as stated in the Consolidated Statement of Financial
Position.
The Group measures the loss allowance for a financial instrument
at an amount equal to the lifetime ECL if the credit risk on that
financial instrument has increased significantly since initial
recognition. In the opinion of the Directors, the carrying amount
of the Group's financial assets best represents the maximum
exposure.
The carrying amount of the Group's financial assets at FVTPL as
disclosed in (note 26 ) best represents their respective maximum
exposure to credit risk. Note 26.6 details the Group's credit risk
management policies
(i) For Other debtors, the Group has applied the simplified
approach in IFRS 9 to measure the loss allowance at lifetime ECL as
the balances are not material.
26.5 Counterparty risk
Argentex relies on third party institutions in order to trade
and clear settlement funds through client accounts. To reduce
counterparty credit risk to acceptable levels, Argentex only trades
with institutional counterparties with robust balance sheets, high
credit ratings and sound capital resources (as disclosed in
accordance with the CRR and CRD IV of Basel III) and monitors the
creditworthiness of institutional counterparties on an ongoing
basis. It is the opinion of the business that the Group's financial
backing, turnover, systems and controls and quality of clients sets
the business at the higher end of the spectrum of foreign exchange
brokers in the UK. The Group's business continuity procedures have
established trading and settlement lines with several institutional
counterparties which means that the withdrawal of services from a
banking provider will have a negligible effect on the business.
26.6 Credit risk management
Note 26.4 details the Group's maximum exposure to credit risk
and the measurement bases used to determine expected credit
losses.
The Group undertakes continuous robust credit analysis before
setting and varying trading limits and accepting trades from each
client. All open positions are monitored automatically in real time
and if deemed necessary collateral (in the form of cash deposits)
is taken from clients to mitigate the Group's exposure to credit
risk.
The table below sets out the profile of the Group 's open
financial assets. Management are satisfied that the assets are of a
high quality, none are past due and that no impairments are
required.
Financial assets at balance sheet date by contractual
maturity
31 March 2021
0-3 months 3-6 months 6-12 months 1-3 years Total
GBP GBP GBP GBP GBP
Derivative financial
assets 10.3 4.9 5.8 4.2 25.2
Other receivables 0.1 - - - 0.1
Financial assets 10.4 4.9 5.8 4.2 25.3
31 March 2020
0-3 months 3-6 months 6-12 months 1-3 years Total
GBPm GBPm GBPm GBPm GBPm
Derivative financial
assets 7.1 4.8 5.7 7.2 24.8
Other receivables 0.1 - - - 0.1
Financial assets 7.2 4.8 5.7 7.2 24.9
The following table details the profile of the Group's financial
liabilities. The amounts are based on the undiscounted cash flows
based on the earliest date on which the Group can be required to
pay.
Financial liabilities at balance sheet date by contractual
maturity
31 March 2021
0-3 months 3-6 months 6-12 months 1-3 years Total
GBPm GBPm GBPm GBPm GBPm
Derivative financial
liabilities (3.7) (2.6) (3.0) (2.6) (11.9)
Amounts payable to
clients (18.7) - - - (18.7)
Other Payables (6.8) - - (0.2) (7.0)
Lease liabilities (0.1) (0.3) (0.8) (5.7) (6.9)
Financial liabilities (29.3) (2.9) (3.8) (8.5) (44.5)
31 March 2020
0-3 months 3-6 months 6-12 months 1-3 years Total
GBPm GBPm GBPm GBPm GBPm
Derivative financial
liabilities (4.5) (3.0) (3.4) (4.0) (14.9)
Amounts payable to
clients (25.5) - - - (25.5)
Other Payables (8.7) - - - (8.7)
Financial liabilities (38.7) (3.0) (3.4) (4.0) (49.1)
27 Fair value measurements
This note provides information about how the Group determines
fair values of various financial assets and financial
liabilities.
27.1 Fair value of the Group's financial assets and financial
liabilities that are measured at fair value on a recurring
basis
Some of the Group's financial assets and financial liabilities
are measured at fair value at the end of each reporting period. The
following table gives information about how the fair values of
these financial assets and financial liabilities are determined (in
particular, the valuation technique(s) and inputs used).
There were no transfers between levels 1, 2 and 3 during the
year. The Group's policy is to recognise transfers into and
transfers out of fair value hierarchy levels as at the end of the
reporting period.
Level 1: The fair value of financial instruments traded in
active markets is based on quoted market prices at the end of the
reporting period. These instruments are included in level 1.
Level 2: The fair value of financial instruments that are not
traded in an active market is determined using valuation techniques
which maximise the use of observable market data and rely as little
as possible on entity-specific estimates. If all significant inputs
required to fair value an instrument are observable, the instrument
is included in level 2.
Level 3: If one or more of the significant inputs is not based
on observable market data, the instrument is included in level
3.
Financial Fair value as at Fair value Valuation technique(s)
assets/ hierarchy and key input(s)
financial
liabilities
2021 2020
----------------- ----------------- ----------- -----------------------------
Foreign Assets GBP25.2m; Assets GBP24.8m; Level The price that would
exchange and and 2 be received to sell
forward Liabilities Liabilities an asset or paid
and option GBP11.9m GBP14.9m to transfer a liability
contracts in an orderly transaction
(note 26 between market participants
) at the measurement
date.
The fair value of
foreign exchange
forward and option
contracts is measured
using observable
market information
provided by third
party market data
providers.
----------------- ----------------- ----------- -----------------------------
27.2 Fair value of financial assets and financial liabilities
that are not measured at fair value
The partners consider that the carrying amounts of financial
assets and financial liabilities recognised in the financial
statements approximately at their fair values
28 Related party transactions
PUMA Lending Limited provided an occasional short term liquidity facility to the Group in
the form of short term loans. GBPnil was outstanding at 31 March 2021 and 2020. GBP2m, plus
related interest of GBP0.1m was repaid immediately following the IPO in the previous financial
year. The relationship of PUMA Lending Limited to the Group is that PUMA Lending Limited shares
common control with Pacific Investments Management Limited, the former owner of Argentex Foreign
Exchange Limited.
Included in other creditors is GBP0.6m (2020: GBP0.6m) owed to Pacific Investments Management
Limited, the former owner of Argentex Foreign Exchange Limited.
29 Contingent liabilities
As at 31 March 2021 there were no capital commitments or
contingent liabilities (2020: none).
30 Controlling party
In the opinion of the Directors there is no ultimate controlling
party of Argentex Group PLC
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