Sadiq’s deputy Rajesh Agrawal makes forex pay despite Brexit

The foreign exchange empire of Sadiq Khan’s business guru boomed last year as it negotiated its way through Brexit, it has emerged.

Rational Group, which comprises the foreign exchange firms founded by deputy mayor for business Rajesh Agrawal, saw revenues surge 20% last year to £1.4 billion, according to accounts filed at Companies House.

The increase was described as a “significant achievement” by the parent company of RationalFX and Xendpay, which said the results were in line with targets set before the Brexit vote hammered sterling.

The company said the pound’s slump “helped the group identify opportunities for operational improvement that have driven a small spread contribution from the previously loss-leading Xendpay”. Pre-tax profits jumped more than 200% to £1.6 million, but were still tiny compared with revenues.

Agrawal joined Khan’s team at City Hall last summer, handing over the chief executive role to co-founder Paresh Davdra, as he stepped back to be non-executive chairman at RationalFX and Xendpay.

Agrawal has hit out at Theresa May’s Brexit strategy. He said last year that London firms needed to maximise access to the single market, passporting rights, and access to talent in Europe.

“We are concerned by the uncertainty caused by Brexit,” Davdra said today. “From our London office, we serve customers from across Europe and employ many people from the EU. Brexit is not the result we hoped for but I believe we have to move forward.”

Expansion in Europe, investment in tech, reducing costs and improving customer service have all helped its performance.