FairFX registers 111% increase in turnover in 2018
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.
