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Argentex - Second forecast upgrade in as many months

December 2019

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • AGFX
  • Price:
  • 170.5p
I incorrectly said FX specialist Argentex had completed its office move to bigger premises last month (it is still working on it) but despite not having room to swing a cat at its Bond Street offices, it has managed to lift its headcount - a proxy for growth - to deliver another eps upgrade.For the H1 to end September, Argentex traded £6bn of FX (+16%). Sales were up 42% to £13.8m, well ahead of the company’s three-year 30% compound rolling target. The operating margin was 43%, also ahead of the mid-forties target.The performance was driven by maturation of the existing sales team combined with 210 new clients signed up and strong repeat business from existing clients. Pretax profit was £4.3m for eps o ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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