Argentex Group Plc (LON:AGFX) is the topic of conversation when Andrew Watson, Senior Research Analyst at Singer Capital Markets, joined DirectorsTalk Interviews.
What were the highlights in Argentex’s H1 interims?
Initiatives in new product, refined technology (incl. Alternative Transaction Banking) and international expansions have driven impressive growth despite low FX volatility: revenue +28% yoy driving 13% growth in adj. operating profit. Margins are stable (~30%), reflecting investment which will payback longer term.
How is the volume and quality of their client base doing?
1,493 corporate clients traded in H1 (+8% yoy) with average revenue per client +8% year on year to £16.5k despite lower volatility. This includes 305 new clients (H1’22 284) which contributed £18.6k average revenue each, which compares favourably both year on year (+55% yoy) and against the wider client base.
What’s your view on progress across the company’s three pillars?
Argentex has delivered progress across all three pillars: adding headcount to grow and support an evolving proposition, launching new technology-enabled product and growing internationally. We would highlight an “ahead of expectations” performance in the group’s digital platform and Alternative Transaction Banking solutions.
Do the shares still represent an attractive opportunity for investors?
The continued execution of strategy around new product, enhanced technology and international expansion offers scope for growth and shareholder value creation. We also note continued growth momentum in the face of more challenging market conditions, which is encouraging should the backdrop improve.
Argentex Group plc (LON:AGFX) service led, tech enabled provider of currency management and payment services to international institutions and corporates.
On 25 June 2019 the company listed on the London Stock Exchange AIM.
The pedigree of asset managers, pension funds, investment banks and family offices that have since invested in Argentex is testament to our robust business model and experienced leadership team.
