Fexco Reports Flat Operating Profits Despite 8% Revenue Growth

Fexco, the Kerry-based financial services firm, reported unchanged operating profits of €22.4 million for the past year, despite a substantial rise in income of 8%, reaching €193 million. This development comes as the company prepares to integrate Sainsbury’s Travel Money unit into its operations, enhancing its presence in the UK market.

The acquisition, set to take effect in early 2024, will allow Fexco to expand its retail footprint to over 460 locations in the UK, positioning the firm among the top five players in the UK’s retail foreign exchange market. Sainsbury’s has been divesting its financial services, having sold its personal loans, credit cards, and deposits business in 2023 to NatWest.

Founded in 1981 by Brian McCarthy, Fexco specializes in foreign exchange and payment services, alongside business and advisory services, property management, and sustainability technology. The firm has also made significant inroads into international markets, particularly in the Asia-Pacific, Latin America, and the Middle East.

In its results announcement, Fexco highlighted new business partnerships, including a collaboration with digital payments provider Maya in the Philippines. This partnership will see Fexco’s dynamic currency conversion tool deployed across 112,000 merchant terminals. Additionally, a deal in Brazil will facilitate the deployment of its currency conversion tools throughout the country’s ATM network.

Strategic Expansion and Investments

Fexco’s Chief Executive, Neil Hosty, emphasized the company’s strategic progress over the past year. He stated, “As we look ahead, we’re focused on innovating and expanding into new markets to create long-term value for our customers and stakeholders.”

The firm has also invested in cloud technologies to enhance operational efficiency and flexibility. Improvements have been made to its network infrastructure, and further investments in cybersecurity and business continuity measures have been implemented to bolster its resilience.

Fexco operates in approximately 30 countries across Europe, the Middle East, Asia-Pacific, North America, and Latin America, employing over 2,500 people. Its recent acquisitions, including Irish firm Owens McCarthy, a public loss assessor, and Inspired Property Management in the UK, which manages over 15,000 units across more than 500 buildings, reflect its commitment to diversifying its service offerings.

The acquisition of Sainsbury’s Travel Money not only strengthens Fexco’s market position but also aligns with its strategy to expand its service capabilities and retail presence in key international markets. As Fexco prepares for further growth, its focus remains on delivering innovative solutions to meet the evolving needs of its global clientele.