Updates

FairFX - Buys City Forex for £6m cash

March 2018

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.

The shares climbed after FairFX said it has acquired City Forex for £6m. The business is already well known to it as it has been providing its travel money since 2007. It has three branches in the City and adds 2,000 businesses and 8,000 private clients, which will boost FairFX’s forex volumes by 50% and remove a layer of margin.Excitingly, City Forex has developed an end-to-end transaction processing platform that allows corporates to get money at bespoke spreads and also carries out automated settlement. By integrating the platform into FairFX’s operations, Cenkos expects c£1m in operating efficiencies – implying a post-synergies acquisition multiple of sub 6x.Separately, FairFX said it expects FY17 profits to be “ahead of ...

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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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