Profit Slide Puts Pressure on OFX’s Capital Strategy and Growth Plans

Financial Performance Overview

OFX Group Limited has reported a modest decline in revenue for the financial year ended 31 March 2025, with total income falling 3.39% to $221.9 million. This contraction reflects a challenging market environment for the foreign exchange services provider, which has also seen a more pronounced dip in profitability.

The company’s underlying profit after tax dropped 18.2% to $27.7 million, while statutory profit after tax declined by 20.6% to $24.9 million. These figures suggest that while OFX remains profitable, margin pressures and possibly increased costs or competitive factors have weighed on earnings.

Capital Management and Shareholder Returns

Notably, OFX did not declare any dividends for the current or prior year, signaling a cautious approach to cash distribution amid profit pressures. Instead, the company has focused on returning value to shareholders through its on-market share buy-back program.

During the year, OFX repurchased approximately 9.2 million shares at a total cost of $13.7 million, continuing a capital management strategy aimed at enhancing shareholder value and supporting the share price. This buy-back activity has increased net tangible assets per share to 26.72 cents, up from 21.25 cents the previous year, indicating a stronger asset backing per share despite the profit decline.

Outlook and Governance

The company’s financial statements have been audited by KPMG, providing assurance on the reported results. OFX has scheduled its Annual General Meeting for 15 August 2025, where investors will seek further clarity on the company’s strategic direction and outlook amid these mixed financial signals.

While the announcement does not include forward guidance or detailed operational commentary, the continuation of the buy-back program alongside the profit decline raises questions about OFX’s growth prospects and capital allocation priorities moving forward.