Changing fortunes after Brexit
Post-referendum, a fun game to play is to try and find a British company whose shares have not dropped.
While many firms are looking for signs of recovery, currency provider FAIRFX had its best ever week.
Due to heightened trading activity during the UK’s EU referendum vote, FAIRFX enjoyed its best ever week since foundation. Revenues were 30% better than its previous record week, back in July 2015, and were over 50% higher compared to the corresponding week in 2015.
Chief executive of FAIRFX, Ian Strafford-Taylor, commented on the lead-up to Brexit and the fallout as ‘interesting’.
He said: “In the run up to it, all the polls were suggesting that we were staying in. The pound became strong and that last week was phenomenally busy for us. Some people were thinking ‘if we leave, will the pound crater?’ which has happened. This week has been more normal.”
Currency has never been a popular topic of conversation. However, the constant discussion of the fall of the pound following Brexit has brought this topic to the forefront.
Strafford-Taylor said: “Because of the shenanigans of the last couple of weeks, people are more aware. It has raised the profile of the pound. It could be that a side effect of Brexit is that it is going to make the man on the street more aware of what a pound buys you, which is not a bad thing for us.”
Another highlight was all of its platforms and systems remaining operational while other currency providers were not as lucky.
Strafford-Taylor said: “In theory, what we do is relatively simple. Last week showed us that it is now as simple as it seems. That is why some people decided not to open their doors, the Post Office’s website crashed, Travelex removed their price promise and various people had issues.”
The chaos of the last few weeks may even turn other players off from entering the market.
“It showed that you can’t just have a website with a server in the corner of your office and expect people to use your product. It’s a financial services product at the end of the day and you need credibility and robustness. I would think some smaller niche players may not participate. People who are thinking about it may think twice,” Strafford-Taylor concluded.