Aquis swings to loss in 2024 as SIX takeover progresses
Aquis Exchange PLC on Monday reported a year of ‘strategic progress’ as it swung to a loss in 2024.
The London-based stock exchange firm offers primary listings and secondary trading of equities as well as licensing of propriety technology.
It swung to a pretax loss of £2.2 million in 2024 from a profit of £5.2 million the prior year, as the firm faced increased impairment charges and depreciation and amortisations costs.
It said its IFRS 9 application resulted in a net impairment provision charge of £3.7 million, multiplying from £1.0 million the previous year.
Depreciation and amortisation costs grew 21% to £1.7 million from £1.4 million, owing to ‘continuing investment in the group’s technological capabilities.’
Aquis reported ‘broadly flat’ 2024 revenue of £23.8 million, up 0.3% from £23.7 million the prior year.
The firm said the small increase in revenue was achieved ‘despite continuing economic headwinds during the year’. This was due to factors such as political changes in both the UK and abroad as well as the impact of interest and inflation rates on market conditions and primary market issuances.
It added that the company saw ‘particularly strong’ revenue in its Aquis Markets division, having had increasing contributions from the Aquis dark pool and an increased revenue from market data following a full year of charging members.
Aquis said that it is working towards the completion of the deal with Six Exchange Group AG, a Zurich, Switzerland-based exchange operator.
The 727 pence per share cash bid from Six, which was announced in November 2024, valued Aquis at £225 million on a fully diluted basis.
In the November statement, Aquis said it recognised the European exchange market remains highly competitive and requires ongoing investment in technology and distribution.
Aquis added that it agreed to the Six offer after extensive talks and ‘several unsolicited proposals’ from Six.
The deal remains subject to the satisfaction of certain regulatory approvals and subsequent sanctioning of the deal by the High Court of Justice.
It expects regulatory approvals to be satisfied in the second quarter of 2025.
Aquis shares were down 0.3% to 705.50 pence in London on Monday morning.
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