TIDMAGFX
RNS Number : 6002F
Argentex Group PLC
08 November 2022
8 November 2022
THIS ANNOUNCEMENT HAS BEEN DETERMINED TO CONTAIN INSIDE
INFORMATION. THE PUBLICATION OF THIS ANNOUNCEMENT MEANS THAT THIS
INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC
DOMAIN.
Argentex Group PLC
("Argentex" or the "Group")
Interim results for the period ended 30 September 2022
Strong growth strategy drives record financial performance
Argentex Group plc, the international provider of foreign
exchange services to institutions, corporates and high net worth
private individuals, today issues its interim results for the
six-month period ended 30 September 2022.
Financial highlights
-- Group revenue growth of 75% to GBP27.4m compared to same period last year (HY22: GBP15.7m)*
-- Adjusted operating profit** up 55% to GBP7.3m (HY22: GBP4.7m)
-- Adjusted operating profit margin down by 3.3% to 26.6% (HY22:
29.9%) but ahead of expectations
-- Short-term cash generation remains strong at 75% (HY22: 82%)
Operational highlights
-- Corporate clients trading up 12% to 1,393 (HY22: 1,241)
-- Structured solutions contributing 9.5% of revenue for HY23 (HY22: 3%) exceeding expectations
-- Spot/forward/structured solutions revenue mix (excluding
swaps) was 39.2%/51.3%/9.5% in the period (HY22:
49.3%/48.8%/1.9%)
-- Clients trading on new online platform grew by 82%
-- 80% of volumes comprised trades in sterling, euro and US
dollar, significantly limiting the impact of risks in emerging
market currencies
-- Argentex BV (our Netherlands entity) has exceeded
expectations and is generating meaningful revenue following the
award of our Electronic Money Institution (EMI) licence
*The Group has changed to a 31 December year end and for this
year reports unaudited 6 months to 30 September 2022 and audited 9
months to 31 December 2022. HY22 refers to the period from 1 April
2021 to 30 September 2021, the first half of the last financial
year ended 31 March 2022. HY23 refers to the period from 1 April
2022 to 30 September 2022.
** Adjusted operating profit excludes non-adjusted expenditure
and share-based payments as shown in the Consolidated Statement of
Profit or Loss and Comprehensive Income.
Strong progress against three-pillared growth strategy
Technology
-- New best in class online platform launched in February 2022
leading to an 82% growth in clients trading online
-- Online platform revenues increased 225% to GBP0.9m
-- Further investment in technology will create efficiencies and enhance profitability
International expansion
-- Argentex BV now meaningfully contributing to Group revenue
-- Electronic Money Institution ("EMI") licence awarded by the
Dutch National Bank in September, resulting in successful
passporting application to all EU countries
People
-- Average headcount increased by 38 FTE (excluding directors
and LLP partners) totalling 107 in HY23 (HY22: 69)
-- Average headcount per region (with growth):
UK NL AUS
Non-sales 38 (+12) 2 (+1) 3 (+3)
Sales/dealing 50 (+12) 12 (+8) 2 (+2)
88 (+24) 14 (+9) 5 (+5) 107 (+38)
--------------- --------- -------- -------
Outlook
Momentum has continued across all facets of the strategy into
the last quarter of our new reporting period. Although market
dynamics continue to be supportive, we maintain a balanced approach
to risk, particularly in light of the uncertainty through this
period of high inflation.
As highlighted in the 3 October trading update, the Board
expects that the financial performance for the full year will
exceed current market expectations and in the medium term expects
initiatives to generate a strong return on investment through
growth in revenues and optimisation of revenue mix, thereby
boosting profitability and improved earnings quality.
Harry Adams, CEO of Argentex commented :
"I am delighted Argentex has delivered another record financial
performance, underpinned by our new growth strategy. Our core
business goes from strength to strength, resulting in high
double-digit revenue and profit growth. All pillars of our growth
strategy have exceeded expectations, driving strong momentum into
H2."
"We have leveraged our evolving suite of products and leading
customer service levels to capture a growing book of high quality,
diversified corporate clients who seek a trusted and
well-capitalised counterparty to provide solutions to their global
foreign exchange needs in today's uncertain market
environment."
Analyst presentation
Argentex will host an online presentation for equity analysts at
09:30 today. Analysts wishing to register should RSVP to FTI
Consulting: argentex@fticonsulting.com
Retail investor presentation
Management will host a live presentation and Q&A for retail
investors via the Investor Meet Company platform at 16:00 today.
The presentation is open to all existing and potential
shareholders.
Investors can sign up to Investor Meet Company for free and add
to meet Argentex Group PLC via:
https://www.investormeetcompany.com/argentex-group-plc/register-investor
For further information please contact:
Argentex Group PLC
Harry Adams - Chief Executive Officer
Jo Stent - Chief Financial Officer
investorrelations@argentex.com
FTI Consulting (Financial PR)
Ed Berry / Ambrose Fullalove / Jenny Boyd
Telephone: 07703 330 199
argentex@fticonsulting.com
Singer Capital Markets (Nominated Adviser and Broker)
Tom Salvesen / James Maxwell / Justin McKeegan
020 7496 3000
Forward looking statements
This announcement contains certain forward-looking statements
with respect to the financial condition, results of operations and
businesses and plans for Argentex Group PLC. These statements and
forecasts involve risk and uncertainty because they relate to
events and depend upon circumstances that have not yet occurred.
There are a number of different factors that could cause actual
results or developments to differ materially from those expressed
or implied by these forward-looking statements. Nothing in this
statement should be construed as a profit forecast.
The release, publication, transmission or distribution of this
announcement in jurisdictions other than the United Kingdom may be
restricted by law and therefore persons in such jurisdictions into
which this announcement is released, published, transmitted or
distributed should inform themselves about and observe such
restrictions. Any failure to comply with the restrictions may
constitute a violation of the securities laws of any such
jurisdiction.
Overview
Argentex has maintained strong momentum through the first half
of the financial period making progress both strategically and
operationally to deliver a record financial performance. The core
business continues to strengthen, driving high double-digit revenue
and adjusted operating profit growth of 75% and 55%
respectively.
Our evolving suite of technology-enabled products alongside our
high customer service levels have attracted a growing number of
corporate clients who seek a trusted and well capitalised
counterparty to provide tailored solutions to fit their global
foreign exchange needs in today's uncertain market environment.
Whilst the period included two weeks of heightened volatility in
the pound, our scalable, highly cash generative and increasingly
diversified business model continues to demonstrate its long-term
resilience and highlight the Group's ability to deliver for all
stakeholders against any economic backdrop.
Financial performance
During the period, the Group has focused on delivering against
its growth strategy and capitalising on growing corporate demand
for a focused, "right tech, right touch" service which has resulted
in a 75% increase in HY23 revenues to a record GBP27.4m (HY22:
GBP15.7m).
In addition to a continued drive to improve efficiency, the
Group maintained a disciplined approach to costs during the period,
resulting in a 55% increase in adjusted operating profit to GBP7.3m
(HY22: GBP4.7m).
Strong client relationships have delivered an increase in
revenue from existing clients combined with an increase in the
number of new corporate clients by 12% to 1,393 (HY22: 1,241).
Our new Structured Solutions division performed well,
contributing 9.5% of total Group revenue in the period compared to
just 2% of total revenue for HY22. The business remains committed
to offering suitable products to professional counterparties only.
These products are for commercial purposes and therefore the Group
does not offer speculative products such as TARFs (Target
Redemption Forward) and TARNs (Targeted Accrual Redemption
Note).
The core business historically was made up of spot forward
product mix only and has been split broadly 50:50 in the past. In
HY23 the product mix has changed to include structured solutions or
options products with spot contracts representing 39.2% of revenue.
Forwards attract higher spreads due to factors such as increased
client credit risk, but the payoff to higher revenue is having to
wait until the contract is settled to realise the cash. A blend of
spot and forward contracts is therefore important for an optimum
mix of revenue generation and cash flow. Although spot contracts
represent a lower percentage of total revenue in HY23, the cash
generation impact is mitigated by the fact that options represent
9.5% of revenues and carry a premium which is paid up front. 75% of
revenues in HY23 convert to cash within a three-month period,
compared to 82% HY22. Furthermore over 80% of volumes comprised
trades in sterling, euro and US dollar, significantly limiting the
impact of risks in emerging market currencies.
Growth Strategy
We are encouraged that our core business, underpinned by the
strong momentum from our growth strategy, is delivering well
against our ambitious expectations and generating a significant
increase in revenues.
TECHNOLOGY
Our technology investment is directly focused on supporting all
of our growth pillars - enhancing our product offerings including
the breadth of our online services proposition, supporting the
solid growth in structured solutions, supporting the increased
regulatory requirements of our global expansion, as well as
supporting our people by making them more efficient and
effective.
Our proprietary platform and the new online service have already
delivered tangible results and opened up new market opportunities.
We will continue to enhance both the products available and open up
additional market segments to serve in the coming period.
Our new online platform was launched in February with a fully
mobile responsive interface allowing our clients to transact
anytime, anywhere at their convenience. The client response has
been extremely encouraging with 290 clients using the service
during the period, increasing online clients in the period by 82%,
building a solid foundation for scaling our business through
increased dealing efficiencies, deeper wallet share, and wider
client segment appeal as we add additional capabilities. We expect
that trend to continue and are confident this investment in
technology will strengthen our client relationships and facilitate
further geographical cross-sell opportunities and provide a solid
base to improve margins over time.
INTERNATIONAL EXPANSION
Our international growth strategy is focused on capturing market
share in target regions. As such, I'm delighted that during the
period Argentex's Dutch subsidiary Argentex BV was awarded an
Electronic Money Institution ("EMI") licence by the Dutch National
Bank. The licence enables Argentex to operate its full business
model to access the growing Dutch FX market.
This gold standard licence endorses Argentex's differentiated
and uncompromising appoach to regulation and will enable the Group
to build on its strong position seamlessly across Europe by scaling
more efficiently in a region that is full of opportunity.
We continue to engage in meaningful conversations with other
overseas regulators, and the Dutch National Bank, to ensure the
right licences are awarded to our businesses in key target
international markets. We expect to update investors on progress of
our launch in Australia in 2023.
PEOPLE
We are adhering to our plan and have made 20 new hires for the
reporting period, 9 of which have been in our international offices
(7 in Netherlands and 2 in Australia). Importantly, we have made
senior hires into Credit Risk and Change Management, this has meant
that our average headcount in the period increased by 38 FTE and
totalled an average of 107 for the period (excluding directors and
LLP Partners) compared to 69 in the prior period.
Outlook
It has been over three years since Argentex made its debut as a
publically traded business. The business continues to mature,
professionalise and adapt to changing market dynamics and the needs
of its clients. We will remain focused on delivering on our three
pillar growth strategy to build an agile, efficient, scalable and
diverisified platform that will drive results for all stakeholders
in all market conditions.
The strategic measures we are taking now and our continued
investment programme are designed to position the Group to
capitalise on the significant opportunities both geographically and
through productisation to become a leading technology-led financial
services provider.
Given the strong HY performance and continued positive momentum
in the last quarter of this reporting period, the Board is
confident the Group will exceed current market expectations for the
full year and expects our initiatives to generate a strong return
on investment through growth in revenues, optimisation of revenue
mix, boost in profitability and improvement in earnings
quality.
Due to the shortened reporting period for the 9 months to the
end of December 2022, the Board has determined not to pay an
interim dividend but intend to pay a final dividend representing
the 9-month period post year-end.
On behalf of the Board, I would like to thank our people,
shareholders and our clients for their continued support and
contribution to our ongoing success.
Harry Adams,
Chief Executive Officer
FINANCIAL REVIEW
Revenue
In the six-month period to 30 September 2022, Argentex generated
revenues of GBP27.4m, representing an increase of 75% on the prior
year six-month period. The breakdown of revenue by product and by
geography can be seen in the table below. Product mix and increased
wallet share are driving this growth in revenues, with structured
solutions and online platform revenues both exceeding management
expectations. Forward contracts represented an increased portion of
core revenue in the half at 57% (HY22: 50%) - options excluded. Our
first overseas office (the Netherlands) has performed well in the
half, exceeding expectations and now making a meaningful
contribution to Group revenue - HY23: GBP0.8m (HY22: GBP0.2m).
Revenue by product
UK ROW Total
GBPm GBPm GBPm
6 months to 30 Sept 2022
Spot 10.5 0.2 10.7
Forwards and other products 16.1 0.6 16.7
26.6 0.8 27.4
===== ===== ======
6 months to 30 Sept 2021
Spot 7.3 - 7.3
Forwards and other products 8.2 0.2 8.4
15.5 0.2 15.7
===== ===== ======
The total number of corporates traded in HY23 was 1,393 versus
1,241 in HY22, an increase of 12%.
Costs
Overall, costs are in line with expectations and include a
credit valuation adjustment provision of GBP0.9m reflecting the
current economic climate. Our investment in people, technology and
international expansion continue at pace and in line with
expectation.
Administrative expenses include variable costs of GBP8.2m which
are driven by revenue volumes.
Investment in people is in line with plan with 20 new hires in
the six-month period. Average headcount in the period totalled 107
(excluding directors and LLP Partners) compared to 69 in the prior
period. The front office/back office proportional split was 60%
front office, 40% back office (prior period 61%/39%). Momentum
continues regarding our investment in overseas expansion with key
hires made in addition to building out appropriate infrastructure
and frameworks. Consultancy and set up fees for the overseas
operations is included in non-adjusted expenditure and is targeted
towards items such as our recently awarded e-money licence in the
Netherlands.
The technology investment continues to deliver with the online
platform ahead of schedule and exceeding anticipated return on
investment. Seven new technology hires have been made in the period
in support of bringing technology in house. Technology development
costs are amortised in line with our capitalisation policy over a
three-year period.
Technology Investment
HY23 HY22
GBPm GBPm
In-house 0.2 -
External 0.7 0.7
----- -----
Total 0.9 0.7
===== =====
Profitability
As previously indicated, there has been a planned decrease in
operating margins in the half to 26.6% (HY22: 29.9%), reflecting
the investment in our three strategic pillars. Adjusted operating
profit for the half of GBP7.3m excludes GBP0.8m of non-adjusted
expenditure to adjust for one-time non-recurring items relating to
senior staff changes and set up of overseas operations in line with
our accounting policies. The share-based payments charge of GBP0.1m
is also excluded from adjusted operating profit. Adjusted operating
profit is presented in the income statement to provide a comparable
view of performance year-over-year.
Consolidated Statement of Financial Position
Total assets increased by GBP119.8m or 123% since March 2022.
The driving force has been an increase in derivative financial
assets held of GBP71.3m. This is driven by a significant increase
in trading activity, including timing of settlement of forward
contracts. The impact on net assets of this increase has been
mitigated by an increase in derivative financial liabilities of
GBP69.3m. The Group holds corresponding liabilities as it operates
as a riskless principal.
Another key driver for the increase in total assets has been the
increase in other assets of GBP34.9m caused by an increase in
collateral required by our counterparties, arising from the
volatility experienced since March 2022 in GBP sterling. The
increase in amounts required by counterparties was offset by an
increase of GBP43.0m in collateral and variation margin collected
from clients, represented by amounts payable to clients. As a
result, net assets increased by GBP3.7m from 31 March 2022.
Cash and other assets totalled GBP93.7m at 30 September 2022, of
which GBP42.1m of other assets represents collateral and margin
held with financial counterparties and GBP67.9m is corresponding
collateral and margin collected from and payable to clients,
leaving a net cash position of GBP25.8m compared to GBP20.2m at 31
March 2022.
Cash Flow
The Group's net cash position (total cash plus collateral held
by institutional counterparties less amounts payable to clients) is
GBP25.8m (March 22: GBP20.2m). The increase from 31 March 2022 is
driven primarily by operating activities .
30 Sept 31 March
2022 2022
GBPm GBPm
Cash at bank 51.6 37.9
Collateral held by institutional 42.1 7.2
counterparties
Less: amounts payable to
clients (67.9) (24.9)
------- --------
Net cash 25.8 20.2
------- --------
Cash conversion
HY23 HY22
GBPm GBPm
Revenue 27.4 15.7
====== ======
Revenue (swap adjusted
S/A) (A) 27.3 14.8
Less:
Revenue settling beyond
3 months S/A (6.9) (2.7)
Net short-term cash generation
(B) 20.4 12.1
------ ------
Short-term cash return
(B/A) 75% 82%
------ ------
The short-term cash return ratio has reduced due to clients
taking out a greater proportion of longer term forward contracts,
offset in part by structured solutions carrying the premium payable
upfront. Cash conversion excluding options is 72%.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
6 months 6 months
to to
30 September 30 September
2022 (unaudited) 2021 (unaudited)
GBPm GBPm
Revenue 27.4 15.7
Cost of sales (0.9) (0.2)
Gross profit 26.5 15.5
Administrative expenses (19.2) (10.8)
Adjusted operating profit 7.3 4.7
Non-adjusted expenditure (0.8) (0.2)
Share-based payments charge (0.1) (0.1)
--------------------------------- ------------------ ------------------
Operating profit 6.4 4.4
Finance Costs (0.2) (0.2)
Profit before taxation 6.2 4.2
Taxation (1.1) (0.9)
Profit and total comprehensive
income for the period 5.1 3.3
------------------ ------------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 30 September
2022
Notes 30 September 31 March
2022 2022
(unaudited) (audited)
GBPm GBPm
Non-current assets
Intangible assets 2.4 2.2
Property, plant and
equipment 8 7.7 8.3
Derivative financial
assets 6 14.1 3.1
-------------- ------------
Total non-current
assets 24.2 13.6
-------------- ------------
Current assets
Trade and other receivables 6 0.9 0.6
Cash and cash equivalents 7 51.6 37.9
Other assets 7 42.1 7.2
Derivative financial
assets 6 98.3 38.0
------------
Total current assets 192.9 83.7
-------------- ------------
Current liabilities
Trade and other payables 9 (81.0) (34.2)
Derivative financial
liabilities 9 (82.9) (21.6)
Total current liabilities (163.9) (55.8)
-------------- ------------
Non-current liabilities
Trade and other payables 9 (6.0) (6.0)
Derivative financial
liabilities 9 (10.3) (2.3)
Total non-current
liabilities (16.3) (8.3)
Net assets 36.9 33.2
============== ============
Notes 30 September 31 March 2022
2022
(unaudited) (audited)
Equity GBPm GBPm
Share capital 10 0.1 0.1
Share premium account 12.7 12.7
Share option reserve 0.5 0.4
Merger reserve 4.5 4.5
Retained earnings 19.1 15.5
Total equity 36.9 33.2
============== ============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the period ended 30 September 2022
Share capital Share Share Merger Retained Total
premium option reserve earnings equity
reserve
GBPm GBPm GBPm GBPm GBPm GBPm
Balance as
at 31 March
2021 (audited) 0.1 12.7 0.2 4.5 11.2 28.7
Profit and total
comprehensive
income for the
period - - - - 3.3 3.3
Transactions with shareholders
Dividends paid - - - - (2.2) (2.2)
Share-based
payments - - 0.1 - - 0.1
-------------- --------- --------- --------- ---------- --------
Balance as
at 30 September
2021 (unaudited) 0.1 12.7 0.3 4.5 12.3 29.9
Balance as
at 31 March
2022 (audited) 0.1 12.7 0.4 4.5 15.5 33.2
Profit and total
comprehensive
income for the
period - - - - 5.1 5.1
Transactions with shareholders
Dividends paid - - - - (1.5) (1.5)
Share-based
payments - - 0.1 - - 0.1
-------------- --------- --------- --------- ---------- --------
Balance as
at 30 September
2022 (unaudited) 0.1 12.7 0.5 4.5 19.1 36.9
============== ========= ========= ========= ========== ========
CONSOLIDATED STATEMENT OF CASH FLOWS
6 months 6 months
to to
30 September 30 September
2022 2021
(unaudited) (unaudited)
GBPm GBPm
Profit before taxation 6.2 4.2
Taxation paid (0.9) -
Net finance expense 0.2 0.2
Depreciation of right of use assets 0.4 0.3
Amortisation of intangible assets 0.7 0.6
Depreciation of property, plant
and equipment 0.2 0.3
Share-based payment charge 0.1 0.1
(Increase)/decrease in receivables (0.3) 1.5
Increase in payables 46.7 3.0
(Increase) in derivative financial
assets (71.3) (1.5)
Increase/(decrease) in derivative
financial liabilities 69.3 (0.3)
(Increase) in other assets (34.9) -
---------------
Net cash generated from operating
activities 16.4 8.4
Investing activities
Payments to acquire property, plant
and equipment - (0.2)
Payments to acquire intangible fixed
assets (0.9) (0.7)
---------------
Net cash used in investing activities (0.9) (0.9)
Financing activities
Payments made in relation to lease (0.3) -
liabilities
Dividends paid (1.5) (2.2)
---------------
Net cash used in financing activities (1.8) (2.2)
--------------- ---------------
Net increase in cash and cash equivalents 13.7 5.3
Cash and cash equivalents at the
beginning of the period 37.9 38.4
Cash and cash equivalents at end
of the period 51.6 43.7
=============== ===============
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 of the Company is 25 Argyll
Street, London, W1F 7TU. The Company's shares are listed on AIM,
the London Stock Exchange's market for small and medium size growth
companies. The Company is the ultimate parent company of the Group
into which the results of its subsidiaries are consolidated.
2 Basis of preparation
The consolidated financial information contained within these
financial statements is unaudited and does not constitute statutory
accounts within the meaning of Section 434 of the Companies Act
2006.
While the financial figures included in this interim report have
been prepared in accordance with IFRS applicable to interim
periods, this interim report does not contain sufficient
information to constitute an interim financial report as defined in
IAS 34. Financial information for the year ended 31 March 2022 has
been extracted from the audited financial statements for that
year.
The financial statements have been prepared using the
measurement bases specified by IFRS for each type of asset,
liability, or expense. The accounting policies applied in
preparation of these interim financial statements are consistent
with the basis that was adopted for the preparation of the full
year accounts for the year ended 31 March 2022 and will be adopted
for the Group's next audited accounts for the 9 months ended 31
December 2022.
Statutory accounts for the year ended 31 March 2022 have been
reported on by the Company's Independent Auditor and have been
delivered to the Registrar of Companies. The Independent Auditor's
Report on the Annual Report and Financial Statements for 2022 was
unqualified and did not contain a statement under 498(2) or 498(3)
of the Companies Act 2006.
These interim financial statements are prepared on a going
concern basis as the Directors have satisfied themselves that, at
the time of approving these interim financial statements, the Group
has adequate resources to continue in operational existence for at
least the next twelve months from the date of this report.
3 Accounting policies
The accounting policies adopted in these interim financial
statements are identical to the those adopted in the Group's most
recent annual financial statements for the year ended 31 March
2022, which are available from the Registrar of Companies and
www.argentex.com/investor-relations .
4 Earnings per share
The Group calculates basic earnings to be net profit
attributable to equity shareholders for the period. The Group also
calculates an adjusted earnings figure, which excludes the effects
of share-based payments, and non-adjusted expenditure (net of a tax
adjustment). The calculation of diluted earnings per share assumes
conversion of all potentially dilutive ordinary shares, all of
which arise from share options.
Six months Six months
to to
30 Sept 2022 30 Sept 2021
Basic earnings per share 4.5p 3.0p
Diluted earnings per share 4.5p 3.0p
Adjusted - basic 5.1p 3.2p
Adjusted - diluted 5.1p 3.2p
The calculation of basic and diluted earnings per share is based
on the following number of shares:
Six months Six months
to to
30 Sept 2022 30 Sept 2021
m m
Basic weighted average shares 113.2 113.2
Contingently issuable shares 0.1 0.1
Diluted weighted average
shares 113.3 113.3
The earnings used in the calculation of basic, diluted and
adjusted earnings per share are set out below:
Six months Six months
to to
30 Sept 2022 30 Sept 2021
GBPm GBPm
Earnings - basic and diluted 5.1 3.3
Non-adjusted expenditure 0.8 0.2
Share-based payments 0.1 0.1
Tax impact (0.2) -
Earnings-adjusted 5.8 3.6
5 Dividends
6 months to 30 September 2022 6 months to 30 September 2021 (unaudited) 6 months to 30 September 2022 6 months to 30 September 2021
(unaudited) (unaudited) (unaudited)
Pence per share Pence per share GBPm GBPm
Final
dividend
recommended
by
Directors
at previous
year end 1.25 2.0 1.5 2.3
------------------------------ ------------------------------------------ ------------------------------ ------------------------------
1.25 2.0 1.5 2.3
The final dividend was declared in July 2022 in respect of the
results for the year ended 31 March 2022 and paid in respect of the
ordinary shares in issue of GBP0.0001 each.
In the previous financial year, an interim dividend of 0.75p per
share, totalling GBP0.8m, was declared and paid. No interim
dividend is proposed for the current financial year.
6 Trade and other receivables
30 September 31 March
2022 2022
(unaudited) (audited)
GBPm GBPm
Non-current
Derivative financial assets at
fair value 14.1 3.1
Current
Derivative financial assets at
fair value 98.3 38.0
Other debtors 0.1 0.1
Prepayments 0.8 0.5
Trade and other receivables 0.9 0.6
7 Cash and cash equivalents
30 September 31 March
2022 (unaudited) 2022 (audited)
GBPm GBPm
Cash and cash equivalents
Cash held at banks 51.6 37.9
Included within cash and cash equivalents are client funds
relating to margins received and client balances payable (see note
9). 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 balance.
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.
Other assets of GBP42.1m (March 22: GBP7.2m) is made up of
collateral with banking and brokerage counterparties. Client
margins received and disclosed within client balances payable are
used to service margin calls with counterparties.
8 Property, plant and equipment
Leasehold Right of Office equipment Computer Total
improvements use asset equipment
Cost GBPm GBPm GBPm GBPm GBPm
At 1 April 2022 1.8 7.3 0.8 0.7 10.6
Additions - - - - -
Disposals - - - - -
-------------- ----------- ----------------- ----------- ------
At 30 September
2022 1.8 7.3 0.8 0.7 10.6
-------------- ----------- ----------------- ----------- ------
Depreciation
At 1 April 2022 0.3 1.5 0.1 0.4 2.3
Charge for the period 0.1 0.4 0.1 - 0.6
Disposals - - - - -
-------------- ----------- ----------------- ----------- ------
At 30 September
2022 0.4 1.9 0.2 0.4 2.9
-------------- ----------- ----------------- ----------- ------
Net Book Value
-------------- ----------- ----------------- ----------- ------
At 30 September
2022 1.4 5.4 0.6 0.3 7.7
-------------- ----------- ----------------- ----------- ------
At 31 March 2022 1.5 5.8 0.7 0.3 8.3
9 Trade and other payables
30 September 31 March
2022 (unaudited) 2022 (audited)
GBPm GBPm
Non-current
------------------ ----------------
Derivative financial liabilities
at fair value 10.3 2.3
================== ================
Lease liabilities 5.8 5.8
Provisions 0.2 0.2
------------------ ----------------
Trade and other payables 6.0 6.0
================== ================
Current
Derivative financial liabilities
at fair value 82.9 21.6
================== ================
Amounts due to members and former
members of Argentex LLP 2.3 2.8
Amounts payable to clients 67.9 24.9
Other creditors - 0.1
Accruals 7.4 3.4
Other taxation and social security 0.5 0.3
Lease liability 0.8 0.8
Corporation tax 2.1 1.9
Trade and other payables 81.0 34.2
10 Share capital
Ordinary Management Nominal
shares shares value
Allotted and paid up No. (m) No. (m) GBP
Ordinary shares of GBP0.0001
each 113.2 - 11,321
Management shares issued
of GBP0.0025 each - 23.6 58,974
At 30 September 2022 113.2 23.6 70,295
========== ========== =========
There were no changes to share capital during the period from 1
April 2022 to 30 September 2022 .
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END
IR FFFLLLDLDIIF
(END) Dow Jones Newswires
November 08, 2022 02:00 ET (07:00 GMT)
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