TIDMAFX
RNS Number : 1403F
Alpha FX Group PLC
14 July 2021
14 July 2021
Alpha FX Group plc
("Alpha FX" or the "Group")
Trading Update
Alpha FX Group plc (AIM: AFX), a provider of FX risk management
and alternative banking solutions to corporates and institutions
internationally, today announces a trading update for the six-month
period ended 30 June 2021.
Key Highlights
- H1 revenue increased by 89% to GBP34m (H1 2020: GBP18m)
- 11% increase in client numbers from 754 FY 2020 to 838
in H1 2021
- Since June 2020, market opportunity and dynamics consistent
with pre-COVID environment
- All divisions profitable and delivering strong growth
- Cash conversion continues to be strong, supported by the
growth of the Alternative Banking division
Overview
Whilst uncertainty will remain under COVID-19, the normalisation
of international trading activity experienced since June 2020 has
continued in H1 of this year. As a result, trading in the first
half has been strong across the business: revenue increased 89%
against the same period last year, 84 new clients were added, and
average revenue per client continued to increase.
Overall headcount increased during the first half of the year,
from 147 to 171 as at 30 June 2021. This comprised new hires in
both Front Office, focused on new business development, and in Back
Office, focused on supporting the growth of our technology and
operations in Alternative Banking.
Since the Group's announcement on 27 May 2021 that it was on
track to exceed expectations for the full year, trading has
continued to be strong. As a result, the Board now expects that, in
the absence of any major new impacts from the pandemic, the Group
will further exceed its current expectations for the full year. We
will provide a more comprehensive update in our Interim Results
statement, which the Group expects to publish on 1 September
2021.
Market Dynamics
Since the beginning of H2 2020, the overall market opportunity
has been broadly consistent with pre-COVID levels. Notable
exceptions include tourism and hospitality, but this has been more
than offset by increased activity in other sectors. Overall, our
strong performance in the period reflects our continued investment
for growth, alongside the quality of our people, service offering,
and highly diversified client base.
FX Risk Management
Our Corporate team continues to deliver strong growth whilst
acting as the incubator for future leaders to launch Alpha into new
markets. Our Amsterdam office highlights the success of this
strategy, achieving quarter on quarter revenue growth since
launching at the end of Q1 last year and was already profitable in
H1 2021. Our Canadian office and UK Institutional business also
continue to deliver excellent growth, with established strong core
teams, setting them up to follow the same growth path as our UK
corporate division.
Milan Office
We continue to believe our ability to leverage our UK corporate
team to export Alpha's culture, knowledge and expertise into new
markets is key to achieving growth, as well as attracting and
retaining talented staff.
Given the early success of the Canadian and Amsterdam teams, we
now feel confident we are ready to make our next growth investment
and, subject to regulatory approval, intend to launch a new office
in Milan later this year. In line with our strategy in Amsterdam,
three existing employees will move to Milan to lead the team, with
each already demonstrating strong track records of success
penetrating the Italian market from our UK office. A presence in
Italy will not only enhance our opportunity within a marketplace
that has already shown encouraging growth, but will also enable us
to attract an even wider pool of high-quality local talent.
Alternative Banking
We are pleased with the performance of Alternative Banking,
which launched a new end-to-end technology stack and platform in
April 2021, before achieving a record-breaking month in May, in
both volumes of payments and subscriptions. As we continue to
enhance the capabilities of our platform it is becoming
increasingly attractive to existing and potential clients.
As a result of the growing revenue streams from Alternative
Banking, our cash conversion is becoming increasingly strong,
helping support future investments and the collateralisation of
hedging contracts as the Group expands.
Having invested significant amounts of time and resource in
analysing the market opportunity for our Alternative Banking
division, we are heading into H2 and beyond with a clearly defined
long-term strategy, underpinned by a focused technology roadmap and
highly capable team.
Morgan Tillbrook, Chief Executive Officer of Alpha FX said:
"I spoke throughout 2020 about the team's drive and commitment
to ensure we emerged from the pandemic a stronger and better
business. The growth we have seen in the first half of the year is
testament to their efforts, as well as our strategy of continuing
to reinvest in the business. Whilst there are still six months of
this year left to go, I am incredibly proud of what we have
achieved and would like to thank everyone for their hard work and
support. I look forward to providing a more detailed update in the
Interim Results in September."
Enquiries:
Alpha FX Group plc via Alma PR
Morgan Tillbrook, Founder and
CEO
Tim Kidd, CFO
Liberum Capital Limited (Nominated Tel: +44 (0) 20 3100 2000
Adviser and Sole Broker)
Neil Patel
Cameron Duncan
Kane Collings
Alma PR (Financial Public Relations) Tel: +44 0203 405 0205
Josh Royston
Andy Bryant
Kieran Breheny
Notes to Editors
Alpha provides FX risk management and alternative banking
solutions to corporates and institutions across the UK, Europe and
Canada. Combining leading expertise and technology, the Group
partners with a small number of high value clients, to provide
enterprise-level solutions across four key areas: FX risk
management, international payments, accounts and collections.
Since it was incorporated in 2010, Alpha FX has been able to
build and retain a high-quality client base that includes a number
of highly respected brands.
Market Abuse Regulation
This announcement is released by Alpha FX Group plc and contains
inside information for the purposes of the Market Abuse Regulation
(EU) 596/2014 ("MAR") and is disclosed in accordance with the
Company's obligations under Article 17 of MAR. The person who
arranged for the release of this announcement on behalf of Alpha FX
Group plc was Tim Kidd, Chief Financial Officer.
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