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FAIRFX Group PLC (EQLS)

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Wednesday 26 September, 2018

FAIRFX Group PLC

Interim Results

RNS Number : 9308B
FAIRFX Group PLC
26 September 2018
 

26 September 2018

 

FairFX Group plc

("FairFX" or "the Group" or "the Company")

 

Interim Results for the six months ended 30 June 2018

 

Strong Half Year Profit and continued growth despite Sterling weakness

 

 

FairFX, the e-banking and international payments group, announces its interim results for the six months ended 30 June 2018.

 

Financial highlights:

 

·      Group turnover(1) of £1,067.4 million (H1 2017: £434.8 million), an increase of 146% (23% on a like-for-like basis)

·      Group revenue of £12.0 million (H1 2017: £6.1 million), an increase of 97% (15% on a like-for-like basis)

·      Gross profit of £9.7 million, an increase of 100% (H1 2017: £4.8 million)

·      Adjusted EBITDA(2) of £2.7 million (H1 2017: £0.2 million)

·      Adjusted PBT(3) of £2.6 million (H1 2017: £0.2 million)

·      Adjusted net profit margin increases by a factor of 10 to 21.9% (H1 2017: 2.7%)

 

(1)   Turnover is measured by gross value of currency transactions sold of £805.0 million plus gross value of deposits into bank accounts of £262.4 million for a total of £1,067.4 million

(2)   Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation charges, acquisition-related expenses, share-based payments and foreign exchange gains and losses

(3)   Adjusted PBT is profit before tax, acquisition-related expenses, amortisation of acquisition intangibles, share-based payments and exchange rate gains or losses

Operational highlights:

 

·      Acquisition of City Forex providing economies of scale

·      Successful migration of FairFX international payments to City Forex Platform  

·      Commencement of self-issuance of cards under Mastercard membership

·      Corporate card turnover growth of 28% to £74.8 million (H1 2017: £58.7 million)

·      Launch of Fair Everywhere business current account

·     Including customers acquired as part of City Forex acquisition, there have been 182,171 new customers added to the business bringing the total number of customers to 911,156.

 

Post-Period End:

 

·      1 million customer milestone passed

·      Strong start to H2 with turnover in July and August up 152% year on year (23% on a like for like basis)

·      Strong performance despite tough macro environment for travel money products - weak Sterling, Brexit, hot UK summer

·      International Payments up 146% year on year (41% on a like for like basis)

·      Corporate expense platform up 41% with growth rate accelerating

·      Commencement of transfer of Corporate platform to new supply chain

·      New Corporate expenses app with receipt upload and VAT reporting established

·      Continued focus on sustainable turnover growth and rationalisation of supply chain

·      FairFX Ireland to be expanded and regulated to cover Brexit risk and reduce reliance on strength of the Pound

 

 

Commenting on the results and outlook, Chief Executive Officer of FairFX, Ian Strafford-Taylor, said:

 

"The business has delivered an excellent first half performance both operationally and in terms of bottom-line. Top line turnover growth has continued, and with the Group operationally geared revenue is increasingly flowing through to profit. This trend is expected to continue in the second half of the year as we grow further and rationalise the supply chain. Achieving this performance against a backdrop of weak Sterling, combined with less people taking holidays in 2018 due to the warm summer in the UK, bears testament to the great strides we have made in recent years to broaden the product mix and reduce our reliance on revenues from foreign exchange.

 

"The outlook for the Group for the balance of the year remains positive despite Brexit weighing on Sterling and providing a headwind. We are actively improving the supply chain both in terms of robustness and improved economics, which we strongly believe will feed through in the second half. We also have an exciting pipeline of product enhancements for the remainder of 2018, and we look forward to updating the market in due course.

 

"Against this background, we remain confident that the full year results will be in line with expectations."

 

Contact:

 

FairFX Group plc                

Ian Strafford-Taylor, CEO

+44 (0) 20 7778 9308

Cenkos Securities plc                                      

Max Hartley/Callum Davidson

+44 (0) 20 7397 8900

Yellow Jersey                                     

Charles Goodwin

Abena Affum

Katie Bairsto

 

+44 (0) 7747 788 221

+44 (0) 7555 159 808

+44 (0) 7946 424 651

 

  

Operational Summary

 

The overall operating environment for FairFX in the first half of 2018 was characterised by a generally weaker Pound trapped in a narrow range, as Brexit continued to dominate customer sentiment. This environment has continued into the second half of the year and serves to reinforce the Group's strategy to diversify its revenue stream from a reliance on Sterling strength. The success of this strategy was demonstrated in H1, with 31.7% of turnover deriving from non-FX activities compared with 13.6% in the same period in 2017. Against this backdrop, the business has performed very well, delivering continued strong growth.

In February 2018, the Group acquired City Forex which offered two key products: International Payments and Travel Currency. City Forex serviced both private client and corporate customers through its proprietary platform and its three central London-based branches. The proprietary platform processes the Travel Currency and International Payments businesses with a high degree of automation and as such, it has now become the Group's platform for international payments. Significantly, the Group's international payments business migrated onto the platform within ten weeks of the acquisition being finalised. The integration of the acquisition has been completed successfully and FairFX has been able to effectively benefit from the synergies created across the Group.

The theme of improving user-experience (UX) remained a key focus in the first half. The Group has aligned its engineering, product and design teams by individual product stream, and the benefits of this are now flowing through with innovation in new products and further enhancements to UX. In particular, new functionality and improved UX was implemented in the Corporate Expense platform with a complete re-design of the site and improved statement and search functionality, which has underpinned its growth in the first half of the year and beyond. In addition, the Group made significant progress on upgrading its overall engineering platform and rationalisation of the supply chain in line with the stated strategy. These major infrastructure projects are now delivering results in terms of internal efficiency and cost savings.

Within the Banking division, a key milestone achieved was the commencement of self-issuance of CardOne Banking Corporate cards in April, which was made possible after the Group's e-money licence was combined with full Mastercard membership granted at the end of 2017. On a wider scale, self-issuance allows the Group to consider multiple options for the issuance of cards across its entire product suite and delivers the stated objective of achieving increasing economies of scale, whilst selectively internalising appropriate parts of the value chain. In addition, within the Banking division, the Fair Everywhere business account was launched at the end of the first half, bringing together the expertise of FairFX in international payments and CardOne's banking capabilities. The account is designed to make global business banking easier, faster and cheaper for those that don't want borders to limit their business ambitions. Since the launch, the product has been further refined and a strong pipeline of development is planned in Banking for the rest of 2018 and beyond.

Financial Review

 

The Group delivered another strong period of growth during the first half of the year whilst maintaining individual product margins which resulted in a substantial increase in profitability. Group turnover grew to £1,067.4 million in the first half (2017 £434.8 million) representing an increase of 145% and 23% on a like-for-like basis. The key areas of growth continued to be the Corporate Platform, which grew 28% and International Payments which grew 131% and 39% on a like-for-like basis (pre-acquisition of City Forex).

 

Group revenue increased by 97% to £12.0m (2017: £6.1m) and on a like for like basis increased by 15% to £7.0m (2017: £6.1m). The percentage increase in Revenues, both on a Group level and on a like for like basis is lower than the turnover percentage growth as a major part of the growth is, as expected, in International Payments and Corporate card products which have lower margins than retail cards.

 

Gross profit doubled to £9.7 million (H1 2017: £4.8 million), ahead of revenue growth, as a consequence of the effects of supply-chain rationalisation and better management of direct costs. The Group's operating expenses increased by 58% on prior period last year, significantly lower than the gross profit percentage increase.

 

As illustrated in the table below, the Company achieved an adjusted PBT in the first half of £2.6 million (H1 2017: £0.2 million), demonstrating the Group's operational gearing and ability to take advantage of further growth. As a result of the significant increase in profitability, the statutory EPS increased to £1.41 (2017: £0.14).

 

 

Adjusted EBITDA/PBT Calculation

2018 H1 £

2017 H1 £

2017 £

Statutory Net Profit

2,083,559

150,392

447,137

Amortisation of acquisition intangibles

310,100

-

220,325

Other amortisation charges

-

-

792

Depreciation costs

86,011

15,108

51,726

Tax credit

(58,919)

-

(217,687)

EBITDA

2,420,750

165,501

502,292

Acquisition-related costs

227,752

-

269,769

Share-based payments

24,000

64,539

112,961

Foreign exchange loss / (gain)

(10,373)

(47,076)

68,186

Adjusted EBITDA

2,662,129

182,964

953,208

Depreciation costs

(86,011)

(15,108)

(51,726)

Other amortisation charges

-

-

(792)

Adjusted PBT

2,576,118

167,856

900,690

 

 

The Company's balance sheet remains healthy with net assets of £ 37.1million (H1 2017: £4.9 million), whilst cash and cash equivalents (excluding client money) totalled £10.7 million (H1 2017 £3.6 million).

 

Current Trading and Outlook

 

FairFX continues to build on the significant growth achieved in 2017 and the first half of 2018, with total turnover for July and August of £472.0 million, up 152% on the same period last year and 23% on a like-for-like basis.

 

Growth continues to be strongest in International Payments and Corporate Expenses product lines, up 146% and 41% respectively in the 2-month period.

 

The Corporate expense product has had new functionality deployed, including multi-card top-up, a receipt upload functionality, VAT reporting plus the ability to annotate expenses on-the-go via the App. These product enhancements have helped the year-to-date growth rate accelerate to 31.4% at the end of August. In addition, the Group has now commenced the roll-out of the new supply chain for the Corporate card which is expected to result in a higher revenue stream and reduced costs for the product.

 

Retail travel money products (cards and cash) have been impacted by a number of macro-factors in 2018 to-date. An exceptionally hot summer in the UK meant that many people elected not to take overseas holidays. This can be seen in the results from various tour operators. In addition, the impact of the Football World Cup on viewing audiences and the effects of a weaker Pound provided headwinds. Despite these factors, the retail products are running parallel to last year both in terms of spend on the cards and customer acquisition, and FairFX already has new product enhancements in the development pipeline.

 

In International Payments, FairFX has made further system enhancements based on the City Forex platform which have eliminated many operational inefficiencies across the Group. The focus of the International Payments team is to work on the customer-facing UX for the platform, and to add new functionality. In addition, the Group has commenced the process of becoming a direct member of SWIFT which will further improve efficiency and reliance on third party infrastructure.

 

The Group has now started the process of upgrading it's registered FairFX Ireland entity to be a full-service operation with authorised payment institution (API) status. The original driver of this entity was to diversify the revenue streams in FX, such that the Group relies less on Sterling strength, and thus, it already has a live online presence. FairFX is now accelerating this process to provide its full suite of services out of the Irish subsidiary. This also has the added benefit of providing a natural hedge for all the various potential outcomes of the Brexit process.

 

The focus for the second half of 2018 will be to continue the strategy of extracting efficiencies via scale whilst evolving the banking products for SME's. In addition, the Group will be continuing to identify and maximise the numerous cross-selling opportunities.

 

 

Accordingly, the Board of FairFX continues to be confident of meeting market expectations for the full year.  

 

  

 

FairFX group PLC

 

consolidated statement of COMPREHENSIVE INCOME

 

 

 

 

Notes

Unaudited

Unaudited

Audited

 

 

6 Months

6 Months

Year

 

 

Ended

Ended

Ended

 

 

30-Jun-18

30-Jun-17

31-Dec-17

 

 

£

£

£

 

 

 

 

 

Gross value of currency transactions sold

 

 

805,293,495

434,052,907

936,593,130

Gross value of currency transactions purchased

 

 

(796,327,938)

(427,948,544)

(923,028,865)

Revenue on currency transactions

 

8,965,558

6,104,363

13,564,265

Banking revenue

 

 

3,057,739

-

1,896,470

Revenue on currency transactions

     4

12,023,297

6,104,363

15,460,735

Direct costs

 

(2,328,410)

(1,256,949)

(3,525,675)

Gross margin

 

9,694,887

4,847,414

11,935,059

Administrative expenses

 

(7,442,495)

(4,697,022)

(11,435,841)

Acquisition expenses

 

(227,752)

-

(269,769)

Profit / (loss) before tax and from operations

 

2,024,640

150,392

229,449

Tax credit

5

58,919

-

217,687

Profit / (loss) for the period / year

 

2,083,559

150,392

447,137

 

 

 

 

 

 

 

 

 

 

Profit / (loss) per share

 

 

 

 

Basic

6

1.41p

0.14p

0.37p

Diluted

6

1.38p

            0.14p

0.36p

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All amounts relate to continuing activities.

 

 

 

 

 

FairFX group PLC

 

consolidated statement of FInancial POSITION

 

 

 

 

 

 

Unaudited as at

Unaudited as at

Audited as at

 

30-Jun-18

30-Jun-17

31-Dec-17

 

        £

          £

       £

ASSETS

 

 

 

Non-current assets

 

 

 

Property, plant and equipment

             603,246

             199,275

             137,580

Intangible assets and goodwill

         24,622,318

             424,578

         17,649,128

Deferred tax asset

             511,912

                      -  

             511,912

 

           25,737,476

                623,853

           18,298,620

Current assets

 

 

 

Inventories

239,763

281,590

199,747

Trade and other receivables

4,252,944

2,926,734

3,779,768

Derivative financial assets

279,522

205,910

303,775

Cash and cash equivalents

57,809,546

7,025,332

51,950,729

 

         62,581,775

         10,439,566

         56,234,019

 

 

 

 

TOTAL ASSETS

         88,319,251

         11,063,419

         74,532,639

 

 

 

 

EQUITY AND LIABILITIES

 

 

 

Equity attributable to Equity holders

 

 

 

Share capital

1,553,682

1,038,401

1,553,682

Share premium

35,858,770

10,482,032

35,858,770

Share based payment reserve

1,168,832

732,961

1,144,832

Merger reserve

8,395,521

5,416,083

8,395,521

Contingent consideration reserve

543,172

-

543,172

Retained deficit

(10,366,986)

(12,747,290)

(12,450,546)

 

37,152,991

4,922,187

35,045,431

 

 

 

 

 

 

 

 

Non-Current liabilities

 

 

 

Deferred tax liability

261,206

                      -  

         673,661

 

261,206

                      -  

         673,661

Current liabilities

 

 

 

Trade and other payables

50,664,514

6,065,990

38,550,504

Deferred tax liability

117,838

-

117,838

Derivative financial liabilities

122,702

75,243

145,205

 

50,905,054

6,141,232

38,813,547

 

 

 

 

TOTAL EQUITY AND LIABILITIES

88,319,251

11,063,419

74,532,639

 

 

 

 

 

Included in cash and cash equivalents at 30 June 2018 was £47.1 of client funds (30 June 2017: £3.4m, 31 December 2017: £34.1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FairFX group PLC

 

consolidated statement of CHANGES IN EQUITY

 

 

Share Capital

Share Premium

Share Based Payment

Retained Deficit

Merger Reserve

Contingent consideration reserve

Total Equity Attributable to Shareholders

 

 

 

 

 

 

 

 

 

£

£

£

£

£

£

£

 

 

 

 

 

 

 

 

Balance as at 1 January 2017

1,031,160

10,174,273

668,422

(12,897,682)

5,416,083

-

4,392,256

Profit for the period

-

-

-

150,392

-

-

150,392

Share issued in the period

7,241

307,758

-

-

-

-

314,999

Share based payment charge

-

-

64,539

-

-

-

64,539

Balance as at 30 June 2017

1,038,401

10,482,032

732,961

(12,747,290)

5,416,083

-

4,922,187

 

 

 

 

 

 

 

 

Balance as at 1 January 2017

1,031,160

10,174,273

668,422

(12,897,682)

5,416,083

-

4,392,256

Profit for the period

-

-

-

447,136

-

-

447,136

Shares issued in the year

522,522

25,684,497

-

-

2,979,438

-

29,186,457

Share based payment charge

-

-

476,410

-

-

-

476,410

Equity based acquisition consideration

-

-

-

-

-

543,172

543,172

Balance as at 31 December 2017

1,553,682

35,858,770

1,144,832

(12,450,546)

8,395,521

543,172

35,045,431

 

 

 

 

 

 

 

 

Profit for the year

-

-

-

2,083,560

-

-

2,083,560

Shares issued in the period

-

-

-

-

-

-

-

Share based payment charge

-

-

24,001

-

-

-

24,001

Balance as at 30 June 2018

1,553,682

35,858,770

1,168,832

(10,366,986)

8,395,521

543,172

37,152,991

 

 

The following describes the nature and purpose of each reserve within owners' equity:

Share capital

Amount subscribed for shares at nominal value.

Share premium

Amount subscribed for shares in excess of nominal value less costs directly attributable to the Initial Public Offer of the company's share.

Share based payment

Fair value of share options granted to both directors and employees.

Retained deficit

Cumulative profit and losses are attributable to equity shareholders.

Merger reserve

Arising on reverse acquisition from group reorganisation.

Contingent consideration reserve

Arising on equity based contingent consideration on acquisition of subsidiaries

 

 

Under the principles of reverse acquisition accounting, the group is presented as if FAIRFX Group Plc had always owned the FAIRFX (UK) Limited group.  The comparative and current period consolidated reserves of the group are adjusted to reflect the statutory share capital and merger reserve of FAIRFX Group Plc as if it had always existed

 

FairFX group PLC

CONSOLIDATED STATEMENT OF CASH FLOWS

 

 

Unaudited

Unaudited

Audited as at

 

6 months ended

6 months ended

Year ended

 

 

 

 

 

30-Jun-18

30-Jun-17

31-Dec-17

 

 

 

 

 

£

£

£

 

 

 

 

Profit / (Loss) for the period / year

2,083,559

150,392

447,136

 

 

 

 

Cash flow from operating activities

 

 

 

 

 

 

 

Adjustments for:

 

 

 

Depreciation

71,082

15,108

51,727

Amortisation

325,029

-

221,117

Share based payment charge

24,000

64,539

112,961

Decrease / (increase) in trade and other receivables

1,146,761

74,668

(697,755)

Decrease (increase) in derivative financial assets

24,253

17,974

(79,891)

(Increase) in deferred tax asset

-

-

(511,912)

(Decrease) / increase in trade and other payables

13,870,033

(1,448,134)

31,254,467

Increase in deferred tax liabilities

(58,919)

-

791,499

Increase in derivative financial liabilities

(22,503)

(72,714)

(2,752)

Decrease / (increase) in inventories`

(40,016)

(51,685)

38,031

Net cash generated from operating activities

17,423,279

(1,249,852)

31,624,630

 

 

 

 

Cash flows from investing activities

 

 

 

Acquisition of property, plant and equipment

(203,205)

(139,125)

(83,266)

Acquisition of intangibles

-

-

(193,757)

Acquisition of subsidiary, net of cash acquired

(6,963,834)

(424,675)

(12,827,261)

Investment in subsidiary undertaking

(4,397,423)

-

(1,255,748)

Net cash used in investing activities

(11,564,462)

(563,800)

(14,360,032)

 

 

 

 

Cash flows from financing activities

 

 

 

Proceeds from issuance of ordinary shares

-

314,999

27,703,789

Costs directly attributable to share issuance

-

-

(1,541,641)

Net cash from financing activities

-

314,999

26,162,148

 

 

 

 

Net increase / (decrease) in cash and cash equivalents

5,858,817

(1,498,653)

43,426,744

Cash and cash equivalents at the beginning of the period / year

51,950,729

8,523,985

8,523,985

Cash and cash equivalents at the end of the period / year

57,809,546

7,025,332

51,950,729

 

 

 

Included in cash and cash equivalents at 30 June 2018 was £47.1 million of client funds (30 June 2017: £3.4 million, 31 December 2017: £34.1million).

 

 

 

 

 

 

FairFX group PLC

Notes to the unaudited Consolidated Interim Report for the six months ending 30 June 2017

 

1.     Basis of preparation and accounting policies

 

The interim financial statements have been prepared in accordance with the AIM rules and the basis of accounting policies set out in the accounts of the Group for the year ended 31 December 2017. The consolidated interim financial statements have been prepared using recognition and measurement principles of IFRS as adopted for use in the European Union. The IASB has issued a number of IFRS and IFRIC amendments or interpretations since the last annual report was published. It is not expected that any of these will have a material impact on the Group and therefore accounting policies applied are consistent with those disclosed in the annual financial statements for the year ended 31 December 2017.

 

The interim financial statements are unaudited and were approved by the Board of Directors for issue on 26 September 2018. The information set out herein is abbreviated and does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. These interim consolidated financial statements do not include all disclosures which would be required in a complete set of financial statements and should be read in conjunction with the 2017 Annual Report. The results for the year ended 31 December 2017 are in abbreviated form and have been extracted from the published financial statements of the Group. There were audited and reported upon without qualificationby KPMG LLP and did not contain a statement under Section498 (2) or (3) of the Companies Act 2006.

 

The Group has not applied IAS 34 "Interim Financial Reporting" (which is not mandatory for UK Groups) in the preparation of this interim report.

 

The Company is a limited liability company incorporated and domiciled in England and Wales and whose shares are quoted on AIM, a market operated by The London Stock Exchange. The Group financial statements are presented in pounds Sterling, which is the Group's presentational currency.

 

2.     Basis of consolidation

 

The consolidated financial statements incorporate the financial statements of the Company and its subsidiary undertakings. The company did not undertake any transactions prior to 30 June 2014.

 

On 5 August 2014, FAIRFX Group plc listed its shares on AIM, a market operated by The London Stock Exchange. In preparation for the Initial Public Offering ("IPO") the Group was restructured. The restructure impacted a number of the prior year and comparative primary financial statements and notes.   The effect of this reorganisation was to insert one new company into the Group, a new ultimate holding company, FAIRFX Group plc.

 

FAIRFX Group Plc acquired the entire share capital of FAIRFX (UK) Limited (previously named FAIRFX Group Limited) on 22 July 2014 through a share for share exchange.  For the consolidated financial statements of the Group, prepared under IFRS, the principles of reverse acquisition under IFRS 3 "Business Combinations" have been applied.  The steps to restructure the group had the effect of FAIRFX Group Plc being inserted above FAIRFX (UK) Limited.  The holders of the share capital of FAIRFX (UK) Limited were issued fifty shares in FAIRFX Group Plc for one share held in FAIRFX (UK) Limited.

 

By applying the principles of reverse acquisition accounting, the Group is presented as if FAIRFX Group plc had always owned and controlled the FAIRFX group. Comparatives have also been prepared on this basis. Accordingly, the assets and liabilities of FAIRFX Group plc have been recognised at their historical carrying amounts, the results for the periods prior to the date the Company legally obtained control have been recognised and the financial information and cash flows reflect those of the "former" FAIRFX (UK) Limited group.

 

3.      Going concern basis

 

The financial statements have been prepared on a going concern basis. In determining the appropriate basis of preparation of the interim statements, the Directors are required to consider whether the Group can continue in operational existence for the foreseeable future. The Directors are of the opinion that the Group and Company have adequate resources to continuein operational existence for the foreseeable future and feel it is appropriate to adopt the going concern basis in the preparation of the interim statements.

 

4.      Segmental analysis

 

The revenue for the group is generated through the provision of currency cards, international payments, travel cash and banking. The revenue is wholly derived from within the UK.

 

 

 

 

Jun-18

Currency Cards

International Payments

Banking

Cash

Central

 Total

 

 

 

 

 

 

 

 

£

£

£

£

£

£

Segment revenue

                          4,087,205

                          3,945,795

                          3,057,739

                              932,558

                                          -  

                        12,023,297

Direct costs

                                          -  

                                          -  

(598,700)

                                          -  

(1,729,710)

(2,328,410)

Administrative expenses

                                          -  

                                          -  

(1,627,895)

                                          -  

(5,814,600)

(7,442,495)

Acquisition costs

                                          -  

                                          -  

                                          -  

                                          -  

(227,752)

(227,752)

Profit /(loss) before tax and from operations

                          4,087,205

                          3,945,795

                              831,144

                              932,557

(7,772,061)

                          2,024,640

 

 

 

 

 

 

 

Total assets

 

 

 

                                          -  

88,319,251

88,319,251

Total liabilities

 

 

 

                                          -  

(51,166,260)

(51,166,260)

Total net assets

                                          -  

                                          -  

                                          -  

                                          -  

                        37,152,991

                        37,152,991

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dec-17

Currency Cards

International Payments

Banking

Cash

Central

 Total

 

 

 

 

 

 

 

 

£

£

£

£

£

£

Segment revenue

                          8,124,165

                          5,108,440

                          1,896,470

                              331,660

                                          -  

                        15,460,735

Direct costs

                                          -  

                                          -  

(347,886)

                                          -  

(3,177,790)

(3,525,676)

Administrative expenses

                                          -  

                                          -  

(1,346,062)

                                          -  

(10,089,779)

(11,435,841)

Acquisition costs

                                          -  

                                          -  

                                          -  

                                          -  

(269,769)

(269,769)

Profit /(loss) before tax and from operations

                          8,124,165

                          5,108,440

                              202,522

                              331,660

(13,537,338)

                              229,449

 

 

 

 

 

 

 

Total assets

                                          -  

                                          -  

                                          -  

                                          -  

                        74,532,639

                        74,532,639

Total liabilities

                                          -  

                                          -  

                                          -  

                                          -  

(39,487,208)

(39,487,208)

Total net assets

                                          -  

                                          -  

                                          -  

                                          -  

                        35,045,431

                        35,045,431

 

 

 

 

 

 

 

Jun-17

Currency Cards

International Payments

Banking

Cash

Central

 Total

 

 

 

 

 

 

 

 

£

£

£

£

£

£

Segment revenue

                          3,531,781

                          2,398,541

                                          -  

                              174,038

                                          -  

                          6,104,360

Direct costs

                                          -  

                                          -  

                                          -  

                                          -  

(1,256,949)

(1,256,949)

Administrative expenses

                                          -  

                                          -  

                                          -  

                                          -  

(4,697,022)

(4,697,022)

Acquisition costs

                                          -  

                                          -  

                                          -  

                                          -  

                                          -  

                                          -  

Profit /(loss) before tax and from operations

                          3,531,781

                          2,398,541

                                          -  

                              174,038

(5,953,971)

                              150,389

 

 

 

 

 

 

 

Total assets

 

 

 

                                          -  

                        11,063,419

                        11,063,419

Total liabilities

 

 

 

                                          -  

                          6,141,232

                          6,141,232

Total net assets

                                          -  

                                          -  

                                          -  

                                          -  

                        17,204,651

                        17,204,651

 

5.      Taxation

 

There is no charge for current or deferred tax due to the availability of tax losses. Deferred tax assets are recognised for tax losses carried forward to the extent that the realisation of the related tax benefit through future taxable profits is considered more likely than not. The decision to recognise any asset will be taken at such point recovery is reasonably certain, when the group returns to profitability. 

 

Based on valuation of acquisition of intangibles an enacted UK corporation tax rates the Group has acquired deferred tax liabilities of £774,626 in relation to its acquisition of Q Money Limited and Spectrum Financial Group Limited. The deferred tax will be released to the income statement as the underlying intangible assets are amortised or otherwise recognised in the profit and loss. The deferred tax liability released to the income statement for the period was £58,919.

 

6.      Profit / Loss per share

 

The profit / loss per ordinary share is based on a loss attributable to equity shareholders of the parent company.

 

 

Unaudited

6 months ended 30 June 2018

£

Unaudited

6 months ended 30 June 2017

£

Audited

Year ended 31 December 2017

£

Earnings:

 

 

 

Profit / Loss for the purposes of basic and diluted profit/loss per share (PPS/LPS) being the net profit/loss attributable to the owners of the Company

 

2,083,559

 

150,392

 

447,137

Number of shares:

 

 

 

Weighted average number of Ordinary shares for the purpose of basic PPS/LPS

 

147,603,753

 

103,768,161

 

122,013,776

 

The calculation of diluted earnings per share has been based on the profit / loss attributable to ordinary shareholders and a weighted average number of shares outstanding, after adjustments for the effects of all dilutive potential ordinary shares.

 

7.     Dividends

 

The Directors do not recommend the payment of a dividend.

 

 

8.     Share capital and merger reserve

 

 

As at

30 June 2018

As at

30 June 2017

As at

31 December 2017

 

Number

£

Number

£

Number

£

 

Allotted, issued  and  fully paid

 

 

 

 

 

 

 

Ordinary shares of 1p each

155,368,259

 

1,553,683

103,840,175

 

1,038,402

155,368,259

 

1,553,683

 

 

Under the principles of reverse acquisition accounting, the group is presented as if FAIRFX Group Plc had always owned the FAIRFX (UK) Limited group.  The comparative and current period consolidated reserves of the group are adjusted to reflect the statutory share capital and merger reserve of FAIRFX Group Plc as if it had always existed.

 

 

9.      Events after the reporting date

 

None.

 

 

10.     Interim announcement

 

The interim report was approved by the Board of Director for issue on 26 September 2018. A copy will be posted on the Investor section of the Company's website at www.fairfxplc.com.

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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