Moneycorp, the UK’s only fully integrated foreign exchange operator, has reported substantial growth in its unaudited 2013 year end trading update, as it continues to implement its expansion strategy.
- Gross profit of £97.2m compared to £65.2m in 2012
- Total business growth EBITDA up 59% year on year or 100% on a pro-forma basis
- International Payments business at revenue of £31.3m, generating growth of 13% accelerating as the year progressed
- Retail business growth of 58% revenue
- Significant growth in online channel sales, with online transactions up 48%
- Over £10b currency trades in 2013
- 39 new airport stores, including Heathrow, Gatwick and Stansted
Over the course of 2012 and 2013, Moneycorp has implemented a number of internal changes to support its rapid growth strategy. These include a re-structuring of its management team; re-energising its sales and marketing functions; investment in support infrastructure; substantially growing its airport contracts and commercial partnerships; and galvanising its Retail business unit.
Moneycorp’s International Payments business unit accounts for over 90% of income. In 2013 the unit saw growth of more than 13%, with record levels of customer retention across its corporate and private clients, as well as record levels of new business acquisition. Recent customer research indicates that this loyalty derives from customers’ appreciation of Moneycorp’s value for money, reliability, service and online platforms which the business continues to invest in to drive improvement. Moneycorp also acquired Thomas Cook International Payments, a strategic move designed to further strengthen the business’s foothold in SME export and import transactions, which reached a five year high in early 2013.
Moneycorp’s Retail business unit grew by more than 58% in 2013. The business opened 39 new airport stores in 2013, including a key move into Heathrow and the renewal of its exclusive contract for Stansted. Moneycorp also deployed more than 60 ATMs across the UK. In April 2013 the business re-launched its multi-currency pre-paid Explorer Card, and has seen significant growth in its reserve and collect service, which allows consumers to order online at a preferential rate for collection at branches – including airports.
The end of 2013 also saw an overhaul of Moneycorp’s brand to reflect the evolution and growth of the business.
Mark Horgan, CEO of Moneycorp said:
“We are setting out to make Moneycorp the first choice in international payments and foreign exchange in the UK. Over the course of the last two years we have looked at every aspect of the business to build a solid foundation for substantial future growth. Our outstanding performance in 2013, across both our International Payments and Retail business units, speaks for itself.
“The international payments market is poorly served by the high street banks, and yet they still retain around 80 per cent of the market in the UK. Our pricing, systems, innovative products and expert service give us a competitive edge over the high street banks, and in 2014 we’ll be competing aggressively to grow our share of this market.”