FairFX announces successful integration of City Forex platform
FairFX has migrated its international payments business onto the innovative proprietary platform developed by City Forex.
Less than three months after international payments and banking services provider Fairfx Group PLC (LON:FFX) acquired City Forex, it is announcing the successful integration of City Forex platform. In a filing with the London Stock Exchange today, FairFX confirms that it has successfully migrated its international payments business onto the innovative proprietary platform developed by City Forex.
The migration of the FairFX international payments business required the transfer of over 100,000 records, the company explained. The platform now gives FairFX payments customers access to a 7-year history of their transactions and also the ability to trade their foreign exchange directly on the platform if they prefer.
In February this year, FairFX announced the deal for the entire issued ordinary share capital of City Forex Limited, acquiring it for a consideration of £6 million payable in cash. The consideration of £6 million is set to be paid from existing FairFX cash resources. The initial consideration for the deal is £5.25 million with the remaining consideration of £0.75 million poised to be paid nine months after completion.
FairFX’s acquisitions drive has boosted the corporate revenues in the first quarter of 2018. Turnover for the first three months of 2018, including CardOne Banking and City Forex, staged a 125.9% jump compared to the same period in 2017 and amounted to £439.5 million (2017: £194.6 million). This growth has been delivered on the back of strong performance by International Payments which is up 98.5% at £212.9 million (2017: £107.2 million) and Prepaid Currency Card turnover which increased 11.2% to £82.6 million (2017: £74.3 million). On a like-for-like basis, turnover from core Forex services rose 31.6% year on year to £256.1 million, the company said.
Revenues, including CardOne Banking and City Forex, saw an 85.3% increase to £4.8 million (2017: £2.6 million). On a like-for-like basis, revenue from core foreign exchange services increased 18.7% to £3.1 million (2017: £2.6 million). Total customer numbers grew rapidly with 26,909 new customers added in the first quarter, bringing the total to 755,894.
Ian Strafford-Taylor, CEO of FairFX, said:
“The project to move the FairFX international payments book onto the City Forex platform has been a tremendous team effort. It was a major achievement to complete the migration in only ten weeks from closing the deal, which demonstrates the Group’s ability to successfully integrate new businesses.”
