Global money transfer service OFX has lifted underlying full-year profit 12 per cent to $20.9 million despite what it says has been a quiet time in the global money transfer market.
Fee and trading income for the 12 months to March 31 jumped 8.2 per cent to $128.7 million, with revenue growing in all regions in which the foreign exchange provider operates.
But net profit dipped 5.8 per cent to $17.6 million due to $4.3 million in previously disclosed one-off costs related to failed talks to acquire UK-based Currencies Direct.
Chief executive Skander Malcolm told investors that, while it was a good year for the company, "we fell short of our own performance expectations," failing to grow active clients in the second half and failing to execute "an inorganic opportunity".
Chairman Steven Sargent said he expected consolidation in the global transfer payment market, which he said has had many new entrants in the last five years, "attracted by the low barriers to entry, and the low cost of debt".
Competitors have attracted a strategy of acquiring clients at any cost, but few are profitable, he said.
OFX had a competitive advantage in offering localised, knowledgeable customer service 24/7 "for what are important and often emotional financial transactions," Mr Sargent said.
Nonetheless, OFX said client engagement was up and that it processed a record 1.05 million transactions, up 8.8 per cent from last year.
The average transaction value was $22,600, up 2.8 per cent.
Looking ahead, Mr Malcolm said that the company would try to continue growth in North America and Asia, while improving client experience.
At 1110 AEST, OFX shares were up 14.5 cents, or 10.25 per cent, to $1.56, a one-month high.
OFX REVENUE UP
* Net profit down 5.8pct to $17.6m
* Fee and trading income up 8.2pct to $128.7m
* Underlying EBITDA up 8.1pct to $32.2m
* Fully franked final dividend up 0.28 cents to 3.28 cents
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