Argentex Share Discussion Threads

[doctor888] 09/11/2022 09:25

@yump - all technical again; typical profit-taking will take this down to around 100-101p, then a new high over the 127.9p.

[yump] 09/11/2022 09:16

Trident5
Oct 3rd “whoop whoop cracking update”

Whats with the reversal ?

You can see adjusted and non adjusted earnings. Not much difference. Its on a low rating for the growth whichever figures you use.

[brummy_git] 09/11/2022 08:27

Find out in this fascinating interview with CEO Harry Adams and CFO Jo Stent - how Argentex grew H1’22 revenues 75% YoY to £27.4m, alongside upgrading FY’22 guidance.

www.linkedin.com/posts/paul-hill-a5994116_video-qa-with-argentex-ceo-harry-adams-activity-6996023627624112129-CvD4?utm_source=share&utm_medium=member_desktop

[trident5] 09/11/2022 08:15

Singer are the NOMAD - it's a pity they have to use made up numbers (adjusted profits) and BS numbers (EBITDA).

[se81] 09/11/2022 07:44

Singer update yesterday

AGFX has published interim results for the six month the period to 30 Sep’22 this morning. Strong revenue growth of 75% yoy to £27.4m was well flagged at the Group’s trading update in October. Adj. operating profit for the period is up 55% yoy to £7.3m and the adj. operating margin of 26.6% remains ahead of FY consensus. The Group’s successfully launched platform as well as its Netherlands operations saw performances ahead of expectations, providing confidence in the Group’s delivery of its strategic plan. We increase our EPS estimates by 23% and 7% for FY22E and FY23E, respectively leaving FY24E unchanged. We increase our TP to 160p as we roll our valuation forward and reiterate our Buy rating.

Strong +75% revenue growth as well as a further increase in the number of trading clients was well flagged at the trading update in October. Revenue growth was partly driven by stronger growth within forward and options-related revenues, the latter of which mitigating any impact of lower spot contribution on cash generation. Overall this has translated to attractive adj. operating profit growth of 55% yoy to £7.3m, whilst adj. operating margins at 26.6% remained ahead of management expectations and well ahead of our ~20% FY forecasts. Increased trading volumes on the back of elevated FX market volatility in the last two weeks of September were a key driver and we believe the successful navigation of this period stands testament to AGFX’s strengthened operating infrastructure.

Whilst strong revenue growth was partly driven by increasingly volatile FX markets during the period, we note the Group further progressed with its strategic plan. In its core business, AGFX has continued to increase wallet share and grow its client base. Additionally, the Group has seen better than expected performance from its Netherlands operations as well as further growth on the client platform side.

We update our model, reflecting a particularly strong performance during 9M’22, upgrading our u/lying EPS forecasts by 23% and 7% for FY22E and FY23E, respectively, leaving FY24E unchanged. The changes are driven by overall stronger topline growth reflecting increased contribution from options, increased wallet share and relatively higher spreads, partly offset by higher costs, predominantly driven by variable costs and further hiring across the business.

We roll our valuation forward, now using FY23E adj. EBITDA to derive our TP and take into account our forecast changes. As a result, we increase our TP to 160p (vs. 121.3p, previously) and reiterate our Buy rating as we see further upside and strong potential on the back of the Group’s continuous delivery of its strategic plan

[se81] 09/11/2022 07:41

Impressed or not with the presentation, the business is starting to do the talking. M'ment given you a good idea of what they're trying to do and where they're trying to go- take a view on the current valuation then either back them or b*gger off!

[dr biotech] 09/11/2022 07:32

Positive write up in the IC

[big7ime] 09/11/2022 00:40

I was in my pants.
I prefer my companies’ directors to wear suits though. 😉

[yump] 08/11/2022 22:33

trident5

The problem they have had is dropping profits, which are now rising.

A true growth stock (unless you're in the US and simply impressed by revenue growth) is one that is growing profits (and revenue).

It may well also be, that having invested a lot in new people who will become more efficient, profit growth will be geared to increases in revenue in a non-linear way.

They are a load of suits. Probably because they are mainly dealing with a load of suits. Except for the jean-clad hoody-wearing internet millionaires. I was in my overalls watching, so I don't know where that puts me.

[yump] 08/11/2022 22:26

"The shares are below ipo"

Oh dear, oh dear, what a pathetic effort to get a bit of a short term trading drop opportunity. There are much better shares to try that on.

[rik shaw] 08/11/2022 22:05

The presentation is available online if anyone missed it:

[trident5] 08/11/2022 19:48

I wasn't impressed by the presentation, they came across as hired suits reading from slides.

[horndean eagle] 08/11/2022 17:56

Its not great. The shares are below ipo. They have had numerous pw already.

[toffeeman] 08/11/2022 17:32

Given the results are now out the PDMRs who bought at 80p will be selling methinks.

[valhamos] 08/11/2022 16:55

The presentation was very clear and confident in terms of the strategy being put in place.

[trident5] 08/11/2022 16:50

Last 4 years' Revenue CAGR was 26% (per their presentation slide)- now the LTIP targets 15% CAGR.

So, either they've got greedy or they expect growth to slow down.

[chinahere] 08/11/2022 16:36

The new LTIP says it will be limited to 6.5% dilution of existing shares and will vest 2026 and 2027.

It is also above a 10% annual shareholder return hurdle which seems reasonable.

But it won't be a yearly event to issue these will it?!?

[dr biotech] 08/11/2022 16:28

Sounds confident with a lot of expansion plans. Said they are a different company to this time last year.

[doobz] 08/11/2022 16:23

Top up times, easy buy this one

[big7ime] 08/11/2022 13:52

Yes it’s because of the change to reporting year, I expect it will be 2p for the 9mths ending 31/12 paid early next yr.

[wirralowl] 08/11/2022 12:59

Results on the face of it look v.impressive, so was surprised to see no interim dividend declared. Anyone seen any reason given for this?

Edit. Just seen this in the 'Outlook' section of the report and answered my question:

"Due to the shortened reporting period for the 9 months to the end of December 2022, the Board has determined not to pay an interim dividend but intend to pay a final dividend representing the 9-month period post year-end..."

[kalai1] 08/11/2022 12:15

Argentex Group plc posted impressive Interims for the six-month period ended 30 September 2022. Revenue continues to grow strongly up 75% to £27.4m compared to same period last year. Adjusted operating profit was up 55% to £7.3m. The number of corporate clients trading was up 12% to 1,393, structured solutions contributed 9.5% of revenue for HY23 up from HY22: 3% exceeding expectations. Clients trading on the new online platform grew by 82%. The outlook also remains upbeat, the Board expects that FY performance will exceed current market expectations and in the medium term expects initiatives to generate a strong return on investment through growth in revenues and optimisation of revenue mix, thereby boosting profitability and improved earnings quality. Valuation is attractive, balance sheet is strong, share price was already breaking higher and has momentum. BUY...

...from WealthOracle

hxxps://wealthoracle.co.uk/detailed-result-full/AGFX/606

[topvest] 08/11/2022 11:33

It does look like everything is now moving in the right direction, which is the first time for a year or so.

[dr biotech] 08/11/2022 11:23

Think the idea of underpromising and over delivering seems to have hit home a bit.

My breakeven here is about 115 (bit less when divs are included) - hasn't been a great investment for me but obv somewhat better now than the 30% loss I was sitting on a short while ago. Will try and tune in later.

[topvest] 08/11/2022 11:16

Good results indeed. Presentation at 4pm.