What started in the year 1998 as a foreign exchange website based in Australia, has today evolved into a specialist money transfer entity on an international level. OFX or OzForex as it was previously known has stronghold as a service provider for international payments in Australia and the Asia Pacific, as well as Canada, the United Kingdom, the United States, and some countries in Europe.
The company has been time and again listed as one of the top tech companies of Australia that have shown steady growth since their inception. However, last year during May, the annual profits for OFX took a 10% drop as it fell to $21.8 million – something that the company boss on the halted Western Union takeover of the company.
However, this dip in the profitability of the company did not stop it from working for bigger and better performance objectives this year. The OFX of 2017 has been a different venture altogether under a different CEO this time around. Helping people and organisations send money overseas in a hassle free way, the company has cashed on their investment in technology and people to bring out maximum productivity for the business and improve upon the customer experience they deliver across the globe.
A full year has passed since May 2016 and the OFX group is well on its way to recovery after the turbulence faced in the preceding financial year. This time around they’ve come out stronger with their shares witnessing a whopping 17% rise in price soon after the Australia-based company for currency transfer reported its financial Full Year financial standing in 2017. The OFX Group has a fiscal year ending March 31.
The company, this year has displayed a considerable growth in their transaction volumes (up by 8.7%) as well as their active clients that now stand at 157,000 after a 3.7% increase from last year, with the corporate segment alone showing a 6.7% rise. However, the OFX Average Transaction Values (ATVs) for overseas money transfer dropped down by 8.8%, most significantly in the UK.
Even with the decline in ATVs, the company’s balance sheet shows a stable position. At reporting date, the company had pre-dividend cash standing net of their customer liabilities stood at $42.6 million. The company had no debt!
This has obviously improved investor confidence in the OFX shares. The same investors who were let down with the company’s performance last year, are now back and willing to once again increase investment in the company. This is one of the major reasons why the OFX shares in 2017 have witnessed remarkable growth so far after taking a terrible blow last year.
The OFX shares closed at AUD $1.54 on May 23, 2017. Although the price is showing an upward trend, it has a long way to go before it reaches the ultimate high of being traded between AUD $2.00 and $2.50 in the past.
Good thing is that the company’s management is determined to reach for bigger and better targets for growth. They have come a long way since the scotched takeover, but there is still a lot that needs to be done to restore the company to its former glory.