Increase in Inter-country Business Payments Among Business Entities

In the dynamic world of foreign exchange (FX) companies, Argentex has been a consistent performer since its launch in 2012. The company, which went public in June 2019, has managed to carve out a niche for itself in the mid-size and up corporate segment.

With a client base of 1,212, Argentex's average annual revenue hovers just over £14,000 per client. Interestingly, approximately 41% of this revenue comes from its top 20 clients, with an average annual revenue of £592,000 per client.

Argentex's take rate, or revenue share of FX flow, averages around 0.2%. This figure is comparable to that of other leading B2B-focused players such as Ebury, Cambridge, and Alpha. The corporate segment, with its long tail of small providers offering relationship-driven sales, remains an attractive market for Argentex.

The company's revenue from spot and forwards has been evenly split in recent years. This balance reflects Argentex's strategic positioning in the FX market.

In the broader financial market, Argentex's peers include companies like Western Union, MoneyGram, and Travelex. These firms have experienced varied impacts during the COVID-19 pandemic. While some have seen reduced transaction volumes due to travel restrictions, others have adapted through digital transformation and increased demand for online remittance services.

Argentex has shown resilience during these challenging times, with no adverse material impact reported from its hedging business due to the pandemic. However, some of Argentex's peers who took on more hedging risk have faced challenges, with EncoreFX going out of business, Cambridge reporting a $90m loss, and Alpha FX initially reporting a significant potential loss, now mitigated to a £2m loss provision.

Argentex's revenue per employee is notable, with 54 employees generating nearly £30m as of 31 March 2020. This efficiency is a testament to Argentex's lean operational structure and focused strategy.

It's worth noting that comparatively, Argentex's performance data is not available for AFEX, Global Reach, and Monex due to a lack of recent or available data. On the other hand, Revolut and TransferWise are gaining customers but typically serve very small businesses with much smaller per customer revenue.

In conclusion, Argentex's steady growth since its inception and its resilience during the pandemic set it apart in the competitive FX market. The company's strategic focus on the corporate segment, efficient operational structure, and balanced revenue streams position it well for future growth.