Argentex crisis deepens after FCA orders it to suspend trading
Argentex warned on Thursday that it had failed to secure much-needed financing, which meant its main subsidiary had fallen short of obligations agreed with the Financial Conduct Authority last month. As a result, the business has halted all commercial activity and its shares have been suspended from trading at 2¾p.
It is the latest blow for the London-based foreign exchange group, which was thrown into turmoil in April by the plunge in the US dollar when the White House stunned global financial markets with its sweeping 'liberation day' tariffs.
Argentex helps corporate clients to hedge their currencies exposure but the violent market moves laid bare weaknesses in its business model. Its shares tumbled and it averted disaster only by agreeing to sell itself to IFX Payments for about £3 million, having been valued at £120 million just six years ago when it listed on London's junior Aim market.
The sale to IFX has yet to complete, however, and it was unclear on Thursday night how the halt to its operations would affect the deal. A spokesman for IFX was approached for comment.
Argentex had almost 200 employees as of the end of last year and until recently counted Lord Jones of Birmingham, better known as Digby Jones, who was once the head of the Confederation of British Industry, as a non-executive board member. Jones left in May amid a wider boardroom exodus. The company is being run by Tim Rudman, its former chief operating officer, who replaced Jim Ormonde as chief executive in April, only hours before the IFX rescue deal was announced.
IFX has extended two loan facilities to Argentex, of £26.5 million and £10.5 million. Argentex had also been seeking a further credit line to ensure it adhered to the measures its main subsidiary had agreed under last month's so-called 'voluntary requirement' with the regulator, which had curtailed its trading activities and placed liquidity conditions on the business that Argentex was meant to have satisfied by Tuesday this week.
Another requirement, blocking it from disposing of its own assets without the regulator's permission, was also put in place last week.
Argentex said on Thursday that it had expected to meet the liquidity conditions through 'the provision of an additional secured revolving credit facility'.
'The company has not been able to secure that additional funding, nor does the company have any other source of alternative funding or liquidity available to it, in the near future.' This means its main subsidiary is required to put a stop to its business until the voluntary requirement is met.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
10 minutes ago
- Daily Mail
ALEX BRUMMER: Bank fears Farage turmoil in No 10
As a public figure, the governor of the Bank of England Andrew Bailey receives most attention from consumers and businesses alike for his role in setting interest rates. Critical as that is to national wellbeing, it has long been my belief that Bailey is more comfortable with the Bank's other, less discussed role of maintaining financial stability. Bailey was first to the battlements in his early days in office in March 2020 as the pandemic shut down Britain and much of the world. Bond markets in New York were in panic, and the Bank, led first by Mark Carney and then Bailey, moved to calm events. A currency swap deal with the US was activated, interest rates were cut to the bone and more money printing, through quantitative easing, was authorised. Bailey passionately urged government to take steps to prevent scarring to the economy. He was also at the tiller in the autumn of 2022 when Liz Truss's tax-cutting mini Budget sparked a run on the pound and a sudden retreat from British government bonds. The scale and suddenness of the move caused ructions for pension funds which had used derivative products to gamble on returns. The episode had threatened, without Bailey's intervention, to cause a cascade of financial collapses among banks who had provided credit for the trades. The Bank of England became a butt of criticism, not least on these pages. Its twice-yearly Financial Stability Report had in the past warned of the potential danger of liability driven-investment products (LDIs) but neither the Bank nor the Pensions Regulator addressed the matter. It is one thing for the Financial Stability Committee to identify and warn of dangers to the financial system, but quite another to tackle a weakness and close it down. Bailey was in the Bank's engine room in the Great Financial Crisis of 2008, so has vast experience of dealing with fractures in the financial system and knows how rapidly contagion takes place. All this experience tells him that Chancellor Rachel Reeves' efforts to encourage growth, by deregulating the City, could be a huge error. It is a reminder of the light touch regulation in the run-up to the collapse of Northern Rock in 2007 and the crisis which followed. Readers of this month's Financial Stability document would find few clues to what Bailey believes is the most acute concern at present. It is not Trump tariffs or the present Government's borrowing needs, as serious as they may be. The governor's biggest worry is political uncertainty. It may seem mad to think that this should be the case given Labour's vast Commons majority and four more years in office. The significant statistic is that Nigel Farage's Reform UK has led the other parties in 65 consecutive polls. And the present kerfuffles in Epping and the record small boat arrivals in a long hot summer make the potential for a Farage journey to Downing Street ever more credible. Bailey and the independent Bank never indulge in party politics. But for the governor, pound sterling, the bond markets and the whole stability of the financial system, the number one threat is a big-spending populist released into Downing Street. Reach for the safety straps.
The Independent
12 minutes ago
- The Independent
Trump and von der Leyen agree EU-US deal on US President's Scotland visit
The US and European Union have agreed a trade deal on Donald Trump's visit to Scotland, bringing months of difficult negotiations to a close. The bloc will face 15% tariffs on most of its goods including cars, semiconductors and pharmaceuticals entering America rather than a 30% levy previously threatened by the US President. President of the EU Commission Ursula von der Leyen said the agreement would provide 'certainty in uncertain times' for citizens and businesses, while Mr Trump hailed what he described as the 'biggest deal ever made'. They also agreed 'zero for zero' tariffs on a number of products including aircraft, some agricultural goods and certain chemicals, Ms von der Leyen said. The two leaders met at the US President's Turnberry golf resort in Ayrshire on Sunday to hammer out the broad terms of the agreement, the detail of which is due to be fleshed out in the coming weeks. Before their bilateral talks, which lasted around an hour, Mr Trump had said there was a '50-50' chance of the deal being reached as a number of the sticking points remained. Following the meeting, he said: 'I think it's great that we made a deal today instead of playing games and maybe not making a deal at all … I think it's the biggest deal ever made.' Ms von der Leyen said: 'Today's deal creates certainty in uncertain times, it delivers stability and predictability for citizens on both sides of the Atlantic.' Irish Taoiseach Micheal Martin welcomed the 'clarity' the agreement brought to the transatlantic trade relationship and said the implications for exports from Ireland would be studied in the coming days. 'That is good for businesses, investors and consumers. It will help protect many jobs in Ireland,' he said. 'The negotiations to get us to this point have been long and complex, and I would like to thank both teams for their patient work. 'We will now study the detail of what has been agreed, including its implications for businesses exporting from Ireland to the US, and for different sectors operating here.' The development on Sunday evening looks to have averted the prospect of transatlantic trade war amid concerns that US tariff rates could damage the world economy. However, uncertainty remains over American levies on steel, which Mr Trump has suggested remains subject to a rate of 50%.
Daily Mail
12 minutes ago
- Daily Mail
Charging point shortage dents demand for EVs
A shortage of charging points is denting demand for electric vehicles, according to industry experts. Figures show there are just 82,369 public chargers in the UK with 48 added each day on average so far this year. Analysis by the Mail reveals Britain needs to build around 130 a day – nearly triple the current number – to reach the goal of having 300,000 public charging points by 2030. The shortage of charging points – which has fuelled so-called 'range anxiety' among motorists worried about where they can plug in – has been highlighted as one of the reasons why demand for electric cars has dwindled. Drivers have also been put off by the price of electric vehicles, which are typically more expensive than petrol and diesel cars. The Government has this summer announced plans to give motorists up to £3,750 to switch to EVs in a bid to boost demand to meet net zero targets. But experts said the shortage of charging points was a major threat to these efforts. Quentin Willson, founder of FairCharge, said the Government 'should do more to fast track and better support installations, especially in areas where there are charging deserts'. He added: 'Consumers rightly worry that there aren't enough public chargers. 'Government needs to send out a clear message to drivers that they are in control of the EV charging narrative, that they will support investment into the charging sector and help keep prices down.' According to charging point statistics website Zapmap, about 8,670 were added to the public network in the first half of this year. But this is less than half of the 19,834 added in 2024, suggesting the rollout is slowing. Just 1,371 were added to the Zapmap database in June – or 46 a day. Susan Wells, a director of EV charging point firm Hive, said: 'Charging must become as straightforward as filling up a petrol or diesel car.' A Department for Transport spokesman said: 'We're adding a public charge point every half an hour.
