What it does
How it’s doing
The foreign exchange services provider, which made its AIM debut with a £12mln June fundraising, said in November its outlook was “strong”.
“We have barely a fraction of a market worth hundreds of billions of pounds,” said Carl Jani, co-chief executive.
“’How can we get more?’ is the question we ask ourselves every morning.”
What the boss says
Co-chief executive Harry Adams said that opportunities for the firm are opening up: “We’re seeing that 85% of corporates still trade using their bank for foreign exchange, so the market is absolutely huge.”
Broker Numis says Argentex‘s foreign exchange service to small and medium-sized enterprises is a “very high margin business”, with an operating margin of 46%.
Unlike most of the rest of the sector, Argentex has almost no market or macro risk.
Numis also pointed out that Argentex is very well diversified by customer and geography, and has “little regulatory risk compared to the rest of the sector”.
“We also see potential for international trades to grow”, the broker added, as Argentex currently generates 72% of its revenue from UK clients.