FairFX registers 111% increase in turnover in 2018

Maria Nikolova

Growth was supported by FairFX’s continued focus on its core products of International Payments and Prepaid Cards.

E-banking and international payments provider Fairfx Group PLC (LON:FFX) has earlier today posted a trading update for the year ended December 31, 2018.

Full year turnover for the Group amounted to £2.36 billion, marking an increase of 111% on the prior year (2017: £1.12 billion) and in line with management expectations. Turnover grew 22% excluding the effect of the acquisitions of CardOne Banking in August 2017 and City Forex in February 2018.

The Group expects to report adjusted EBITDA of approximately £7.5 million for FY18. This compares to EBITDA of £1.0 million registered in FY17.

Growth was supported by FairFX’s continued focus on its core products of International Payments (up 134%) and Prepaid Cards (up 8%). In keeping with the Group’s stated strategic objective of growing the Corporate segment of the business, usage of the Company’s corporate card platform rose by 30% compared to 2017. Furthermore, during FY18, 315,000 new UK domiciled retail customers were acquired bringing the total to 1,040,000 customers.

The Group has continued to invest in the CardOne business and platform to pursue identified opportunities which are expected to be realised during the current financial year.

The other key area of strategic focus for the Company has been to invest in the platform and rationalise the supply chain. Further advances were made during the year, including self-issuance of CardOne corporate cards under FairFX’s Mastercard membership. One area of focus was the removal of a layer of the supply chain and improve margins across the corporate card division. Progress was made in this respect but it was slower than the Board would have liked. The Board expects this to be finalised and to contribute improved margins during the current financial period.

Regarding outlook, FairFX conceded that Brexit negotiations continue to provide macro-economic headwinds for the business. However, the Board expects 2019 to be another year of significant growth.

Read this next

Financewire

Kinesis Mint becomes the official partner for the House of Mandela

Kinesis Mint, the certified independent precious metals mint and refinery of Kinesis, the monetary system backed by 1:1 allocated gold and silver, has been appointed the exclusive coin producer for the House of Mandela.

Chainwire

Kadena Announces Annelise Osborne as Chief Business Officer

Kadena, the only scalable Layer-1 Proof-of-Work blockchain, expands its leadership team by onboarding Annelise Osborne as Kadena’s new Chief Business Officer (CBO).

Fintech

TNS brings full-stack market data management to EMEA

“We are also delighted to have Ben Myers join our London-based TNS Financial Markets team as Head of Strategic Sales for EMEA, to bolster our presence in the region.”

Chainwire

Velocity Labs and Ramp Network facilitate fiat to crypto onramp on Polkadot via Asset Hub support

Velocity Labs is proud to announce a fiat to crypto onramp using Ramp Network through the integration of Asset Hub. Through it, Ramp will be able to service any parachain in the Polkadot ecosystem.

Executive Moves

INFINOX hires Mayne Ayliffe as Global Head of HR

“I look forward to working with our teams around the world to develop a strategic HR agenda that supports high performance and is centred on human motivation.”

Fintech

Sterling to provide risk and margin support for fixed income

“Firms must have the tools to effectively manage their risk across all asset classes. As yields rise, we see more exposure from clients in the fixed income space. We understand their need to measure and mitigate risk in a highly regulated environment.”

Retail FX

FXOpen launches HK share CFDs: Tencent, Alibaba, Xiaomi, Baidu

Hong Kong share CFDs will be commission-free for a limited period of time.

Retail FX

IronFX Celebrates an Award-Winning Start to 2024 with a Series of Industry Recognitions

IronFX, a global leader in online trading, has embarked on 2024 with a spectacular display of accolades that highlight its commitment to excellence and innovation in the competitive financial services sector.

Industry News

FIA urges CFTC to regulate use cases rather than AI itself

“We urge the CFTC to refrain from crafting new regulations that generally regulate AI because this approach presents certain well-known pitfalls. By approaching the issue from the perspective of AI as a technology, rather than the use case for the technology, corresponding regulations would likely necessitate a definition of AI. We anticipate that any attempt to properly define AI would be very challenging and require considerable resources.”

<