Moneycorp, the foreign exchange and international payments specialist, has reported a strong half year financial performance in the run up to the EU Referendum.
In the uncertain environment ahead of the landmark vote, client demand for specialist support to maximise international payments grew across its corporate and private businesses.
In H1 2016, EBITDA increased 34% YOY and gross income hit £68m, a 12% increase on the same period in 2015. The Corporate International Payments businesses delivered impressive results including a 13% YOY growth in revenues for the UK and 41% increase in revenues for Ireland.
The specialist, which continues to challenge traditional high street banks on both cost and service, saw a record-breaking number of transactions on the day of the Brexit result on June 24th. Moneycorp traded a weeks’ worth of normal business in seven hours, between 5AM and 12PM.
Moneycorp also continued its sharp focus on technology and the digital transformation of the business during H1, including the investment in a complementary offshore technology hub in India.
Within moneycorp’s Private International Payments business, revenue was up 7% from H1 2015 in a more challenging market environment. Meanwhile, the Retail business division saw gross income up by 11% - in line with increased passenger numbers in Gatwick and Stansted airports during the same period. Moneycorp’s reserve and collect service continued to grow during H1, with 10% of total transactions originating from reserve and collect customers. Development in the Retail business has also seen an expansion to 10 currencies available for customers on moneycorp’s pre-paid card, the explorer MasterCard.
H2 is set for a strong performance and the business will continue to invest significantly in the international rollout of its corporate and consumer payments platforms, and tech innovations including a mobile app.
Nick Haslehurst, CFOO of moneycorp said:
“We’ve had a very strong start to 2016 despite huge uncertainty in the market. Now more than ever, internationally trading businesses and individuals are looking for specialist guidance to manage currency volatility and we’re helping thousands of customers to do this.
“Growth is set to continue during the second half of the year, as clients understand the value of an expert during uncertain market conditions. We are continuing to focus on our customer relationships as well as bolster our international footprint to ensure that we can provide the best service for our clients all over the world. Financial technology has always been at the heart of moneycorp’s success and we’ll be looking at further product enhancements and our online capabilities.”
Moneycorp now has more than 800 staff based across Europe and the US and the company’s ambitious international strategy will see further growth in the future, as well as the development of Gibraltar-based Moneycorp Bank.