RNS Number : 8611I
22 June 2011
22nd June 2011
("Baydonhill" or the "Company")
Baydonhill (AIM: BHL), one of the UK's leading foreign exchange specialists, announces a trading update ahead of the announcement of its final results for the year ended 31 March 2011, which the directors expect will be released in late August 2011.
In the second half of the financial year to 31 March 2011, Baydonhill has focused on making strategic changes to improve the quality of its earnings. As part of these changes, Baydonhill made a decision to exit the Money Service Business sector due, in part, to changes in the regulatory environment. These changes will impact revenue in the short term although the Company expects to achieve a broadly breakeven position at the profit before taxation level for the second half of the financial year to 31 March 2011. The Company expects to report year on year revenue growth (net commission earned and bank charges) of approximately 85 per cent. to GBP6.5 million. For the year, the Company expects to have achieved a small profit before taxation, compared with a loss of GBP739k for the year ending 31 March 2010.
During the period Baydonhill entered into an affiliate arrangement to provide payment services to clients of Interchange Limited, a competitor in the Private Client sector, which ceased to trade in March 2011. This has facilitated a significant increase in the number of private clients using the Company's services.
In the first two months of the current financial year the Company has seen good underlying growth in revenues over the same period last year. The company expects to replace the revenue lost from exiting the Money Service Business sector by the end of the current fiscal year.
Wayne Mitchell (Chief Executive Officer)
Sarah Collis (Finance Director) +44 207 594 0515
Merchant Securities Limited (Nominated Adviser
Simon Clements +44 207 628 2200
Square1 Consulting Limited
David Bick / Mark Longson +44 207 929 5599
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