Revenues for Aquis Exchange (AQX) have continued to surge this year, as the cash equities trader and exchange licensee saw its market share of continuous pan-European trading climb from 3.8 to 4.8 per cent in the six months to June. This was done despite some consolidation among its clientele, as existing members – which include 14 of the world’s leading investment banks – traded on Aquis’ platform at higher volumes.
In absolute terms, these figures are still slight, and the relative scale of Aquis’ business meant the Aim-traded company still posted a small half-year loss before interest, tax, depreciation and amortisation. But the subscription-based model for trading continues to gain traction, evidenced by the 125 per cent rise in exchange revenue, year on year.
The licensing offering has arguably been even more of a hit. Revenues from Aquis’ market gateway, surveillance and matching engine and exchange technology rocketed in the period, from 8 to 21 per cent of total revenue. Given these were driven by mandates in the prior period, investors might have wished for clearer guidance on likely sources for the division’s near-term growth. Turning the recently acquired NEX Exchange into a highly liquid platform could be a longer-term challenge.
House broker Liberum forecasts an adjusted loss of 3.6p a share this year, and earnings of 9p a share in 2020.
| AQUIS EXCHANGE (AQX) | ||||
| ORD PRICE: | 475p | MARKET VALUE: | £129m | |
| TOUCH: | 475-494p | 12-MONTH HIGH: | 620p | LOW: 410p |
| DIVIDEND YIELD: | NIL | PE RATIO: | N/A | |
| NET ASSET VALUE: | 51p | NET CASH: | £11.2m* | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2018 | 1.3 | -3.2 | -118 | nil |
| 2019 | 3.4 | -0.6 | -2 | nil |
| % change | +165 | - | - | - |
| Ex-div: | n/a | |||
| Payment: | n/a | |||
| *Excludes £1.28m of lease liabilities | ||||
