Fairfx Share Discussion Threads

[proactivest] 15/4/2016 14:32

Video interview with Ian Strafford-Taylor



Ian Strafford-Taylor, chief executive of FairFX Group plc (LON:FFX), is confident he can double the current number of customers by the end of next year.

The online multi-currency payments and travel money specialist has just over 508,000 customers and is focusing on attracting more clients through an improved website, an easier to use app and a television ad campaign which starts on June 1st.

Strafford-Taylor says cross-selling success will be achieved by embedding the company into customers’ phones and their psyche.

High on the agenda for the FairFX boss is the corporate offering which is growing rapidly and "we have a lot of exciting plans there as well.”

[quepassa] 08/3/2016 08:20

More dilution.

Personally, I don't understand why the market price is around 30p when the new equity/placing price is at 20p.


One notes the words in the RNS "to dis-apply statutory pre-emption rights ".

Seems that they have acquired many more customers during 2015 - it will be interesting to see if that feeds through to profitability when "FairFX expects to report its full year results in April 2016".

Why can't they give a firm date for results as we are in March?

ALL IMO. DYOR.
QP

[mach100] 07/3/2016 08:16

Looks a good deal to me p1nk. I have been watching these for a while as they certainly have fallen a long way. I need to find out more about Crystal but they seem to have shown a lot of faith in the company. If it falls to the placing price I will invest for sure but I think it will hold up on today's news.

[p1nkfish] 07/3/2016 07:56

20p raising and warrants to 7.3% of float.
Crystal will do well out of it.
Not sure about others though.

[errollc] 15/2/2016 09:43

Distressed seller cleared....business going well.

WE shall see.

[cascudi] 17/12/2015 21:58

is Mr Drummond may be the seller behind those big trades?

[quepassa] 17/12/2015 16:33

Is this telling you something?

Down 15% today at c. 21p bid.

What a shocker.

ALL IMO. DYOR.
QP

[quepassa] 14/12/2015 15:20

In just over a month, Fairfx has fallen another 20% or so.

My screen now showing 24p bid.

Not encouraging in my view.

ALL IMO. DYOR.
QP

[quepassa] 09/11/2015 12:17

At near 30p is this a new low?

ALL IMO. DYOR.
QP

[quepassa] 29/9/2015 22:51

Let's hope so.

But it is by no means clear that clients will remain when advertising falls.

There has been a clear link between rising advertising spend and rising turnover.

My guess is that when advertising spend falls, turnover will fall.

It's not like SAC ( Subscriber acquisition cost ) with mobile telephone companies where you lock your client into a 12/18 month contract.

Cenkos don't always get it right you know. Weren't they the adviser to Quindell whose fortunes have been somewhat torrid of late?

But what continues to defy gravity in my view is the microscopic networth of the company versus its market cap.

The Company needs to give a figure for ACTIVE customers or new customers not just a historic five year list of the number of customers who at one time or another did fx with them.

It really does not convince that they spend a fortune on advertising and still produce a massive loss.

It looks to me like a quoted company with a networth as low as that of Fair FX is living on the edge.


ALL IMO. DYOR.
QP

[errollc] 29/9/2015 12:02

Marketing expenditure is now going to fall, so with rising turnover next year, profits will come through. As per the Cenkos note.

[quepassa] 29/9/2015 08:09

It's no good increasing your turnover if it produces a bigger loss.


The H1 this year loss has risen to a whopping £2.06million ( from a comparable 2014 H1 loss of £0.58m).

Total Equity has fallen to a tiny £122,000. - Compare that to the current market capitalisation of the stock.


Certainly not robust in my view


ALL IMO> DYOR.
QP

[cwa1] 28/7/2015 10:18

Thanks, please, no heroic efforts though!! No probs at all if you don't manage :-)

[errollc] 28/7/2015 09:55

CWA1 I'll try to get the full note and then email it to you.

[cwa1] 27/7/2015 16:21

errolc, thanks for that. Do you have a link/copy of that available? Cheers

[errollc] 27/7/2015 15:55

CWA1 The recent Cenkos note puts the company of a 2016 PE of 5.6x. The analyst there is very good.

[quepassa] 23/7/2015 08:22

Beware customer numbers. They count anyone who ever did a single transaction with them as a customer. So If someone changed £100 5years ago but has never done anything with them since, they are still classified as a customer.

The customer numbers do not, in my understanding, relate in any way to active customers.

ALL MO> DYOR.
QP

[cwa1] 21/7/2015 08:05

Morning All

Well that seems to be a very upbeat and self congratulatory update:-



However, as someone who is totally unfamiliar with the company: will they make any money/profits from all this "land grab"? Not much on that. No forecasts or broker notes that are easily available as far as I can see.

What say you company followers out there? Start of something big, or just another start up that shows that turnover is vanity, profit is sanity?

Would welcome any informed opinion.

[berkhath] 28/4/2015 20:00

FairFX sells money for money. Margins are tiny and volume is a big factor. They have run with tight finances for too long now.

Their card product is stronger and has more public presence, however, prepaid cards are currently a lost leader and there are bigger players out there.

Another AIM shock?. Of course not.

[quepassa] 22/4/2015 14:06

The bid price of 41p is now 10% beneath the IPO price.

ALL IMO. DYOR.
QP

[quepassa] 20/4/2015 11:55

Now beneath the placing price of last year.

I am sure there will be a lot of detailed and searching questions at the investor presentation tomorrow being held at FinnCap in The City.

Such as:-

1. Why there is such a small free float and how this impacts on small shareholders.

-Especially as the host of the seminar, The Share Soc., is a champion of small shareholder rights.

2. The cash burn on advertising versus income.

3. A detailed explanation of how FairFx calculate their oft-quoted rising customer numbers.

4. Why the share price is now below the flotation price, especially as it went up some 70% or so after the IPO.

5. Detailed look at the balance sheet figures and cash-flow statements for the Company. Not just a glossy blue-sky story/presentation of providing cheap fx services.

6. How the current net worth of the Company supports the current market valuation of the Company of circa £30million.

7. The intentions of the large shareholders vis-à-vis keeping their shareholdings or otherwise.


ALL IMO. DYOR.
QP

[errollc] 31/3/2015 09:28

Costs can come down and with the top line growing rapidly this can be profitable quickly. The database is valuable (any bank would want this turnover and client base) making FFX a takeover target when a bit bigger. Europe is now opened up for FFX providing a huge source of new clients...with strong, backers who are proven money makers (Chris Levett etc), I'm happy here.

ALL IMO. DYOR.
EC

[quepassa] 31/3/2015 07:25

A stonking great loss for the last financial year of £2.8 million ( compared to a profit of £100k in 2013).

It's one thing and relatively easy to achieve big growth in turnover. It's another thing to make money out of it.

ALL IMO. DYOR.
QP