Foreign exchange provider OFX Group is still to struggling to bounce back from depressed transaction volumes post-Bexit, with the company issuing a warning on Wednesday that fee and commission income for the 2017 full year would be lower than expected.
The trading update came at the same time as the business announced the appointment of a new chief executive, John Alexander Malcolm, who replaces Richard Kimber who has stepped down from the role.
The company warned that its financial year 2017 fee and commission income would be $3 million lower than expected, causing investors to push OFX (formerly called OzForex) shares down more than 15 per cent in opening trade to $1.42.
OFX chairman Steven Sargent said in a statement to the ASX the trading update was disappointing.
"While softer market conditions in the UK as a result of Brexit have resulted in lower average transaction values, the revenue uplift from our marketing program in Australia during the third quarter and into January has not been as significant as we had hoped," he said.
"The board firmly believes that the growth opportunities for OFX, both domestically and abroad, are substantial and that the long term outlook for the business is very strong."
OFX's earnings before tax, depreciation and amortisation for the 2016-17 financial year is "now expected to be between $27.5 million and $28.5 million with statutory net profit of at least $19 million", the company said in a statement to the ASX.
The foreign exchange group said in the three months ended December 31, it saw a "further decline in average transaction values", largely stemming from the UK after the June Brexit vote resulted in "fewer large value discretionary transactions and a corresponding 35 per cent decline in revenues per transaction".
Mr Malcolm earlier worked with HSBC for 10 years in the UK, before returning to Australia to join Westpac's card products group.
