Lord Digby Jones Kb. Non-Executive Chairman of Argentex Group Plc (LON:AGFX) sets out in their latest Annual Report 2022 how the business demonstrates agility and innovation, its achievements and strong outlook.
“Global businesses have faced significant challenges over the last two years, navigating the unprecedented global lockdowns followed shortly by the tragic outbreak of the war in Ukraine and a downturn in the UK macro-economic outlook. Inevitably this has led to many adjusting their course to navigate this uncertainty. Hindsight shows us that the companies successfully performing in and emerging from these conditions are those that prioritised the pursuit of stable, measured growth through the uncertain times, while maintaining an unrelenting focus on the building blocks needed to capitalise on new sector trends.
It is this that defines the strength of Argentex’s financial performance through the period – a considered repositioning of the business’s strategy which is already delivering, refocusing on investment in people, technology and international expansion in order to pursue new opportunities emerging across the foreign exchange sector. Under the expert leadership of Harry Adams, the evolution of Argentex and its path forward are clear, with a sustainable and diversified platform that is better positioned than ever to meet increasing client needs and delivering for all stakeholders.
I am proud to serve as Chairman of a business that continues to demonstrate its agility and innovation making the most of changing market conditions. My thanks go to Harry and the full Argentex team for their hard work and commitment this year. The ongoing success of the business is testament to their expertise and collective mindset geared towards sustainable growth. It is an honour to work alongside them. I must also extend my thanks to Lena Wilson for her invaluable contributions to the business’s growth in the last few years as a Board Director. Her expertise has come at a vital time for a newly listed business and she leaves with our deep gratitude and best wishes for her future endeavours.
Fundamentally, Argentex has remained a trusted partner to a client base that has, in recent years, had to grapple with a series of volatile macroeconomic conditions, including the latest period of high inflation, rising rates and a consequential costof-living crisis. While such pressures will undoubtedly continue to weigh on business and market sentiment over the short to medium term, Argentex’s ability to continue to grow its corporate client base and relative market share, while supporting clients and navigating the market-wide headwinds speaks of the resilience and professionalism in the business.
Argentex is committed to continue outperforming expectations for its clients and shareholders alike by providing a viable and flexible alternative to traditional banks, growing internationally, and developing technology enabled products – there is much to be excited about on the horizon.
KEY ACHIEVEMENTS
Against this backdrop, the Board is very pleased to have delivered results that were ahead of market expectations with record revenue growth and a substantial increase in profitability over the period. These strong results have been achieved alongside the management of an ambitious investment programme and ensuring the continued progressive dividend policy is maintained.
This recent strong performance has not come overnight, nor is it a symptom of external market drivers alone. Through a refined strategy, the last 18 months have been about putting the building blocks in place to unlock the significant growth potential identified and to create a market leading client proposition. While the ambition is long-term, the immediate and tangible results of the corporate strategy cement its viability and potential for future performance.
Argentex continues to build out its core offering to capitalise on the evolving needs and interests of its growing and increasingly global client base. Through the high-quality talent it increasingly attracts, the strengthening expertise within the Group alongside an exciting product development pipeline demonstrates a commitment to being a sophisticated partner to clients.
The business has welcomed marketleading talent at all levels during 2022. On behalf of the Board, I’d like to extend my congratulations to David Christie for all he has accomplished in the first full year of his role as Chief Operating Officer. Hires over the period have professionalised further back-office functions, strengthened marketing, compliance and risk management divisions, while adding efficiencies and critical resources to the sales team. Their collective contributions are fundamental to Argentex’s delivery of a high quality, sustainable and responsible client service.
What is vital in any growing business is the preservation of good corporate culture and a sense of belonging and contribution among its employees. I am proud of the way the business is focused on fostering a culture defined by inclusivity, innovation and collegiality, enhancing the way it delivers value for clients, attracts new business and grows its market share. It is also central to its ability to attract and retain talent.
The increasingly dynamic sector in which Argentex operates, and the evolving needs of clients around the world, mean there is no limit to the role technology can play in enhancing its offering to existing and new customers. The Board looks forward to announcing further developments to the business’s technological capabilities as a result of the recent focused investment that has been made
Argentex’s internationalisation strategy designed to replicate its proven and growing UK model in highly regulated geographies where there is demonstrable latent demand for its products and services continues to gain momentum. The Board is pleased that the Group has further strengthened its presence and local market offerings in the Netherlands and Australia. We continue to assess new territories that can support our ambitious growth plans and remain confident in the role these regional offices will play as a springboard to further expansion in new, highly regulated, markets over time.
OUTLOOK 2022
This has been a defining year for Argentex operationally, strategically and financially. Our investment as part of the three-pillared strategy is delivering robust results and we are winning further market share as a result of our client centric approach and growing breadth of services. I am excited about the business’s continued ability to capitalise on the significant opportunities that present themselves in the global FX and payments sectors.
Argentex is well positioned to continue to enhance its client service, product suite and footprint in line with the increasing trading and digital demands of its clients and further increase market share. I look ahead to the remainder of the year (and beyond) confident in the Company’s sustainable diversification strategy and long term prospects.”
