Travelex warms up for IPO with rising earnings
FOREIGN exchange shop Travelex yesterday confirmed it is hoping to float on the stock market after a period of investment in its overseas business and technology division drove profits higher.
The firm, a fixture of airports around the globe, said it was exploring a number of strategic options for the group, which included an initial public offering of shares in the business.
Travelex is majority controlled by private equity firm Apax.
“We’re evaluating strategic options such as an IPO, which remains a favoured option,” chief executive Peter Jackson told City A.M.
Revenue rose 12 per cent for the year ending December to nearly £700m, with earnings before interest, taxes, depreciation and amortisation rising by 21 per cent.
“The business is clearly benefiting from the investment we’ve made and we’re seeing good growth in outsourcing and wholesale, which is one of our hidden gems,” Jackson added.
Travelex is now based in 26 countries around the world and runs 1,400 shops and 1,250 cash machines.
Its largest revenue stream comes from its shops and cash machines and this segment saw a four per cent rise in revenue to £487.6m for the year.
“We must have grown market share,” Jackson said. “In the UK we’re a category leader.”
Payment and technology showed the fastest revenue growth of 21 per cent, hitting £21.2m of revenue.
Travelex made a bold move in Brazil in April last year by taking a 49 per cent stake in Grupo Confidence, its Brazilian equivalent. This helped add £50.3m of revenues to the group last year.