- Marked growth in membership numbers
- A maiden full-year profit revealed
A significant moment for Aquis Exchange (AQX), as the exchange services group announced its first full-year pre-tax profit, with “financial progress across all the group's divisions”.
Aquis, which acquired growth company-focused NEX Exchange from CME Group last year, is looking to attract the types of listings that used to be the preserve of London’s Aim.
Corporate interest in the exchange appears to be growing. Membership numbers increased 10 per cent to 33 by the end of 2020, and have climbed to 39 in the intervening period. With some of the UK’s most prominent trading platforms looking at developing commercial ties with a second UK-based stock market, prospects are looking up, particularly as Brexit uncertainties – a disincentive in terms of public listings – have largely been resolved.
Liberum forecasts EPS of 8.5p in 2021, rising to 14.9p in the following year. The group performed creditably through a year characterised by major disruption, but a forward price/earnings multiple of 69 suggests that sizeable expectations are already baked into the share price. Hold.
Last IC view: Hold, 475p, 17 Sep 2019
| AQUIS EXCHANGE (AQX) | ||||
| ORD PRICE: | 585p | MARKET VALUE: | £159m | |
| TOUCH: | 570-600p | 12-MONTH HIGH: | 605p | LOW: 304p |
| DIVIDEND YIELD: | nil | PE RATIO: | 146 | |
| NET ASSET VALUE: | 55p | NET CASH: | £11.3m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2017 | 2.01 | -3.27 | na | nil |
| 2018 | 3.98 | -3.66 | -20.0 | nil |
| 2019 (restated) | 6.89 | -0.92 | -3.00 | nil |
| 2020 | 11.5 | 0.47 | 4.00 | nil |
| % change | +67 | - | - | - |
| Ex-div: | - | |||
| Payment: | - |
