Commenting on the results and outlook FairFX plc LON:FFX Chief Executive Officer, Ian Strafford-Taylor, said: “The first half of the year has been very successful for FairFX, especially given the various macro-economic factors encountered. The twin effects of global political events and the EU referendum campaign have hindered many companies with a travel-related focus but FairFX has continued to grow. At the same time, we have significantly reduced the net loss for the first half, showing a clear path towards achieving profitability in 2017.”
FairFX, the low cost multi-currency payments service, announces its interim results for the six months ended 30 June 2016.
Key Financial Highlights
· Turnover up 10 per cent. to £344 million (H1 2015: £312 million)
· Revenue up 26 per cent. to £4.6 million (H1 2015: £3.6 million)
· Gross profit up 30 per cent. to £3.6 million (H1 2015: £2.7 million)
· Net loss reduced by 57 per cent. to £0.9 million (H1 2015: £2.1 million)
Key Operational Highlights
· Raised £5.25 million through placing, including strategic investment by Crystal Amber Fund Limited
· The Group delivered on its strategy to shift the business mix towards higher margin products. As a result, increases of 26 per cent and 30 per cent in revenue and gross profit respectively were achieved from a 10 per cent. rise in turnover
· Total retail customer numbers increased by 40,376 to a total of 548,424 with emphasis on card customers, which increased by 34,165 despite headwinds experienced by many travel-related companies
· Corporate card platform growth of 64% to £30.4 million in turnover (H1 2015: £18.5 million)
· Remodelled website with rebranding and full-service mobile app deployed ahead of schedule
· Targeted marketing investments of £1.6 million (H1 2015: £2 million), principally used for running of TV commercial
· Fully operational throughout EU referendum campaign with record week during voting period
· Strategic partnership with HolidayExtras to promote FairFX’s products to its customer base
Post-Period End
· Growth in new card sales accelerated further with 17,002 cards sold in the 2 months post-period end
· Total turnover in July and August was approximately £165 million, an increase of 32 per cent. on the same period last year
· Strategic partnership with Premier League Champions Leicester City signed
· Accelerated growth in Corporate card platform usage to 79 per cent. year-on-year