Aquis [AQSE:AQX], the company that runs the stock exchange that takes its name, published its unaudited six-months results to end-June last week.
The Aquis Stock Exchange saw two IPOs since the start of the year.. But the company manages a number of other divisions. Aquis Markets operates lit and dark books in sixteen European markets. Aquis Technologies, the group’s software and technology division, creates and licenses exchange infrastructure technology. Aquis Data collects, collates and sells data from Aquis Markets and the Stock Exchange.
- Clean Invest Africa: Turning waste into energy
- Tectonic Gold: A focus on Queensland and IRGS deposits
- Time Finance’s revenue, profit soar as it expands lending book
Aquis reported net revenue of GBP10m. Despite challenging trading this was up 3.5% year-on-year from the first half of 2023. Earnings were marginally down y-o-y from GBP1.7m in 1H23 to GBP1.6m in 1H24. Profit of GBP1.1m remained flat y-o-y, but earnings per share were down 0.8p y-o-y to 3p/share. The group had GBP14.5m of cash in the bank.
Strategic review underway
The company has been undertaking a strategic review in the last year and Alasdair Haynes, Aquis’ CEO explained: “There is real momentum across the business. Our pipeline in the technologies division has increased materially since last year and now stands at record levels, with notable growth in the quality of the pipeline as well. Our strategic investment in this division demonstrates our commitment to strengthen the group’s ability to capitalise on this pipeline, and drive further scale.”
The company identified its technology division as offering significant opportunities and in the second half of this year management announced that it was going to invest GBP6.2m in the division, spread over the next three years as a strategic focus following the build-up of a significant quality pipeline. The investment will help the firm build-out a portfolio of key products in exchange technology, especially the group’s proprietary matching engine technology.
Data was also a growth market for Aquis, increasing its data-specific clients from 75 at the end of last year, to 107 by the half-way point of this year. Aquis generates revenue from the sale of data from its Aquis Markets and stock exchange businesses to clients that aren’t part of the market. The data division, following the introduction of fees for data in 2Q24 saw revenues rise, which Haynes believed would continue to rise.
The most-public face of Aquis, its stock exchange, had a strong trading period, seeing value of trades up by 44% y-o-y and its market constituents raise just shy of GBP90m, notwithstanding very poor conditions for stock exchange across the board. As reported at the beginning of this year, the company had a strong 2023 and has carried its momentum over to the first part of this year.
As previously explained Aquis’ stock exchange sees itself as a disruptor to the legacy stock exchanges; a place for modern business, especially growth-orientated companies, such as in the technology sector, offering a simpler and more cost-effective listings platform that still has liquidity, but doesn’t skimp on regulatory oversight and offers companies often frozen out of the traditional exchanges a way to tap public money. As previously reported, Haynes is expecting a tidal wave of new international investment following the victory of the Labour Party in this year’s general election.
Aquis Stock Exchange performs strongly
Aquis divides the Stock Exchange into two segments, the Access Market and the Apex Market, with Access focusing on earlier stage growth companies and Apex the intended market for larger, more established businesses. Despite the stock market gloom, the Aquis Stock Exchange reported a 10% increase in number of trades and 88% increase in total value of further issues y-o-y.
Haynes said: “I am excited about the future as Aquis remains well-placed to pursue the opportunities that lie ahead, as we continue to execute our long-term growth plan.”
Aquis’ strong financial performance and strategic investments demonstrate its resilience and adaptability in a challenging market. With a growing pipeline of opportunities in its technology division and a thriving data business, the company is well-positioned to capitalise on future growth prospects. The Aquis Stock Exchange’s continued success as a disruptor in the market further solidifies its position as a leading player in the financial services industry.
