OFX confirms receiving unsolicited approach, talks discontinued

Maria Nikolova

The company entered into discussions about potential M&A activity but, in light of uncertain equity markets, these discussions have been discontinued.

Provider of online payment services OFX Group Ltd (ASX:OFX) today published a trading update ahead of the release of its FY20 financial results due in May 2020. The announcement includes a brief comment regarding recent developments on the M&A front.

OFX confirms that having recently received an unsolicited approach, the company entered into discussions about potential M&A activity, the details of which remain confidential. However, in light of uncertain equity markets, these discussions have been discontinued.

The company explains that its FY20 results will include some corporate action costs resulting from these discussions.

Regarding its performance, OFX says that volatility related to market uncertainty from COVID-19 has stimulated trading activity across both the Consumer and Corporate segments. This has led to strong turnover and transaction volumes in February and March to date. As a result, the company anticipates underlying EBITDA for FY20 to be between $36.8 million and $38.3 million.

OFX reconfirms its FY20 financial commitments of delivering annual positive operating leverage on an underlying EBITDA basis, related to revenue growth, with stable NOI margins excluding IPS. Capital expenditure for FY20 will be below the $11m anticipated at the half year. The investment in infrastructure to support the Link Enterprise deal remains on track with the registration process now live.

The company continues to generate good levels of cash and is well placed to provide additional collateral to its banking counterparties to support heightened trading levels. It expects to end the year with more than $56 million of net cash held.

In response to the COVID-19 pandemic, OFX has implemented business continuity procedures across its global operations. The services are operating well, the company says, and the situation is being monitored daily.

Read this next

Uncategorized

Finance Feeds launches Podcast: Listen to Ep. #1 feat. Dmitri Galinov of 24 Exchange

The team at Finance Feeds are happy to announce the launch of our Podcast series, available on Spotify and hosted by our Editor-in-Chief Nikolai Isayev. In the first episode, Nikolai interviewed Dmitri Galinov, Founder and CEO of 24 Exchange, the fast-growing OTC ECN addressing market challenges such as fragmented pools of liquidity and increasingly costly […]

Retail FX

SimpleFX Review: Cryptos, Spreads, Pros & Cons

SimpleFX combines years of Forex and cryptocurrency experience with a focus on offering resources to retail traders. 

Retail FX

Ironbeam becomes CME clearing member and launches MT5

“The direct clearing aspect along with our low-latency proprietary trading tools and technology solutions make Ironbeam the ideal trading destination.”

Institutional FX

Top 0.07%: oneZero makes it to Inc. 5000 of fastest growing companies in America

oneZero started out by serving the foreign exchange trading community, developing and executing technology that could scale with the growth of the FX market.

Industry News

CFTC wins case against broker for secretly taking other side of client orders in block trades

“As we said at the outset of this case, the illegal use of inside or confidential information undermines confidence in markets and will not be tolerated.”

Technology

BankiFi raises $4.8m to bring embedded banking platform to North America

“Our mission is to make all aspects of cash management and payments easier for SMBs everywhere, and this investment is another huge step to making that a reality.”

Executive Moves

Shieldpay hires ex-Payoneer Chris Andrews as Head of Sales

“We’ll be expanding our position in existing markets and accelerating growth into new verticals, whilst building on our direct and indirect channels.”

Digital Assets

Crypto.com secures preliminary approval to operate in Canada

Crypto.com, one of the longest-established crypto platforms, has become the first digital asset platform to sign a Pre-‘Registration Undertaking’ with the Ontario Securities Commission (OSC) in Canada.

Retail FX

CySEC hits IC Markets One with regulatory warning

The Cyprus Securities and Exchange Commission has once again stepped up its fight against unauthorized brokers.

<