Aquis swings to pre-tax loss ahead of acquisition by SIX Exchange

14th Apr 2025 11:12

(Sharecast News) - Aquis Exchange reported a decline in profitability for the year ended 31 December on Monday, as it continued to invest in its long-term strategic ambitions across all divisions, while progressing towards a recommended cash offer from SIX Exchange Group.

The AIM-traded firm said gross revenue for the year was broadly flat at £23.8m, compared to £23.7m in 2023, but net revenue declined to £20.1m from £22.7m.

Adjusted profit before tax dropped sharply to £1.1m, down from £5.2m the year before, while the company reported a statutory pre-tax loss of £2.2m, swinging from a profit of £5.2m in the prior year.

Cash and cash equivalents at year-end were £13.7m, slightly lower than £14.8m a year earlier.

Despite the weaker financial performance, Aquis highlighted progress in its core operations.

Aquis Markets introduced conditional orders early in 2024, which helped grow market share to 5.22% by year-end, while Aquis Technologies signed one new contract and reported a record pipeline of prospective deals, and Aquis Data saw further growth in market data revenue.

The Aquis Stock Exchange delivered higher trading volumes and the strongest level of secondary fundraising since acquisition, despite subdued UK primary listing activity.

Aquis said its recommended acquisition by SIX Exchange Group remained on track, noting that following shareholder approval in December, all antitrust conditions had now been met.

The remaining regulatory approvals were expected to be received in the second quarter, with completion of the scheme still anticipated within that timeframe and before the longstop date of 11 November.

"2024 was a year of strategic progress for Aquis across the group, with a slight increase in gross revenue despite continued economic headwinds throughout the year," said chief executive officer David Stevens.

"The group benefits from the diversified product offerings of its four divisions, with growth in the markets and data divisions offsetting a flat year for the Aquis Stock Exchange and a decline in revenues for the Technologies division following a strong 2023.

"The recommended offer represents an exciting next step in Aquis' journey and an opportunity to accelerate our development."

At 0920 BST, shares in Aquis Exchange were down 0.28% at 705.5p.

Reporting by Josh White for Sharecast.com.