OFX Group set to incur $4m in extraordinary expenses due to discussions with Currencies Direct

Provider of online international payment services OFX Group Ltd (ASX:OFX) has earlier today posted a brief announcement on the ASX, saying it would incur some extraordinary costs.

OFX says it will incur non-recurring operating expenses related to disclosed discussions with Currencies Direct. These non-recurring operating expenses are expected to be approximately $4 million.

As per the outlook provided at the FY19 half year results, OFX reconfirms:

• Its commitment to deliver annual positive operating leverage on an EBITDA basis, excluding these non-recurring operating expenses related to corporate actions;
• That EBITDA in 2H19, excluding these non-recurring expenses, will be stronger than 2H18 EBITDA, with stable Net Operating Income (NOI) margins; and
• Continued revenue momentum with a focus on growing active clients and driving corporate growth.

The non-recurring operating expenses will reduce statutory net profit after tax (NPAT), so OFX anticipates paying a final dividend for FY19 based on underlying NPAT.

In an announcement filed with the ASX on November 13, 2018, OFX Group noted media speculation and commented that it continually reviews potential opportunities and holds discussions with various parties, including Currencies Direct. OFX also stressed that it is in compliance with its continuous disclosure obligations and will keep the market informed in accordance with those obligations.

A week later, OFX said that discussions with Currencies Direct were no longer continuing.