FairFX Group plc (LON:FFX), the low cost multi-currency payments service, has today announced its audited full year results for the year ended 31 December 2016.
2016 Financial Highlights:
· Turnover (gross value of currency sold) up 27.4% to £798.3 million
· Revenue exceeded £10 million for first time, up 27.9% to £10.2 million
· Gross profit up 31.2% to £7.5 million
· International payments turnover up 49.2% to £446.5 million
· Currency card turnover up 24.1% to £299.0 million
· Corporate platform growth was substantial, growing 98.2% to £80.5 million
· Trading loss of £1.4 million, a reduction of 58% on prior year and ahead of expectations
· Investment in marketing totalled £3.3 million
· Fourth quarter net profit achieved
2016 Operational Highlights:
· 80,802 new customers added to the business, bringing 2016 total to 588,192
· Growth achieved with minimal headcount increase, averaging 66 in 2016 versus 65 in 2015
· IT development focus was on improving customer user experience across all devices
· Significant investment in data analysis capability that has already started to assist understanding of our customers, including cross sell, improved retention and re-activation
· Operational resilience demonstrated throughout volatile Brexit period, peaking in week of referendum when volumes increased by c.50% without issue.
· Signed strategic partnerships with Leicester City F.C. and HolidayExtras to promote FairFX products to their respective customer bases
Q1 2017 Highlights:
· Q1 was a strong start to the year
· Turnover up 32.9% for the quarter at £194.3 million (Q1 2016: £146.2 million)
· Revenue growth of 33.1% for the quarter at £2.6 million (2016: £1.9 million)
· International payments turnover up 27.9% for the quarter to £107.2 million (2016: £83.9 million)
· Corporate platform continues impressive growth with turnover up 103.3% in the quarter to £27.1 million (2016: £13.3 million)
· Geographical expansion commenced with setup of operations in Ireland
· Sponsorship of Sky Sports coverage of Formula 1 announced to promote consumer, business and international payments offerings.
· 15,070 new customers added in the quarter bringing the total to 603,262
· Electronic money licence acquired which enables FairFX to offer new products to current customers, create new opportunities in the banking and corporate space and to rationalise the supply chain by bringing certain services that require this licence, in house
Commenting on the results and outlook, Ian Strafford-Taylor, FairFX Group Plc Chief Executive Officer, said: “The Company had a very successful 2016 beating expectations in terms of all KPI’s, with turnover increasing strongly, revenue breaking through the £10 million barrier and improved margins boosting gross profit. FairFX also made big strides towards profitability, with the loss for the year more than halved compared to 2015 and profitable trading achieved in the final quarter of the year. Importantly, the 2016 results were achieved whilst FairFX maintained its marketing spend, capturing a significant number of new customers and further building its brand awareness. Even more pleasing is that this was accomplished despite the challenging trading conditions that resulted from the prolonged Brexit referendum process in the first half.
“The top line growth has continued into 2017 through the first quarter and the Company is significantly better equipped to maintain this growth as it targets a net profit for 2017. With the continuation of the Company’s strategy to maintain momentum in the retail product, whilst successfully growing the corporate offering, the board is confident that the outlook for the full year remains in line with market expectations.”