Alpha FX Group PLC Trading update (0594Z)
08 Gennaio 2020 - 08:00AM
UK Regulatory
TIDMAFX
RNS Number : 0594Z
Alpha FX Group PLC
08 January 2020
8 January 2020
Alpha FX Group plc
("Alpha" or the "Group")
Trading update
Alpha FX Group plc (AIM: AFX), a foreign exchange and payments
specialist working for corporates and institutions internationally,
today announces a trading update for the year ended 31 December
2019.
Following the last trading update on 17 October 2019, trading
has continued to be strong, with revenues for the FY expected to
exceed GBP35m and pre-tax profit margin also slightly ahead of
expectations despite continued investments made throughout the
year.
These results come off the back of another strong performance
from our core corporate and institutional divisions, across both UK
and European markets (serviced from our London office). Client
numbers[1] subsequently increased during the year by 34% from 482
to 648, whilst the number of countries in which Alpha services
clients also grew, further extending the Group's runway for growth
and validating the investment in recruiting bi-lingual speakers
over the past two years.
Heightened levels of uncertainty around the 2019 General
Election and Brexit have naturally made foreign exchange an
increased topic of conversation, however we do not believe this has
had a material impact on our performance. Fundamentally, this is
because we remain focused on promoting a structured and formalised
approach to currency risk management - one where clients buy
currency in line with a pre-agreed strategy, rather than in
response to isolated macro conditions.
Pleasingly, both Alpha FX Canada (launched in October 2018) and
Alpha Payment Solutions (launched in December 2018) also continue
to build momentum. Alpha FX Canada grew revenues consecutively in
each quarter during the year and is well placed to contribute to
the Group's profit in 2020. Alpha Payment Solutions performed in
line with expectations and, whilst it still remains in the early
stages of growth, with a clear strategy and strong leadership team
established, we are confident it is on track to become a meaningful
contributor of earnings in the medium-term.
As previously highlighted, the Group has maintained strong
profitability despite ongoing investments, both in the core
business and its more recently established divisions. Investment in
2019 included our move to new permanent headquarters in Paddington,
which as expected, has enabled us to accelerate recruitment in the
latter half of the year by providing us the space to attract more
high-calibre individuals who share our cultural values.
Consequently, Front Office headcount grew from 51 to 74, whilst
Back Office grew from 31 to 50.
Whilst the increase in Front Office headcount will support
further client acquisition in the medium to long-term, as expected,
the contributions from new hires has been minimal as they remain in
the early stages of their learning curve[2]. The results in 2019
are therefore testament to the quality of our more mature hires and
their ability to develop further along the learning curve. Equally,
with further strong hires during the year, we are excited about the
growth potential this cohort can bring to the business in 2020 and
beyond, as they also mature.
In Back Office, the acceleration in hires (versus prior years)
was coordinated to support the development of Alpha Payment
Solutions and further enhance the Group's overall technology stack.
Importantly, the technology being built by Alpha Payment Solutions
provides benefits to the wider group as a whole, in the form of
greater automation, resilience and scalability, all of which should
support the Group in retaining its highly efficient operating model
long into the future.
Ultimately, Alpha's growth and investments to date are once
again the by-product of our desire to build a company with a
sustainable and long-term growth story - one that our investors,
employees and clients will benefit from long into the future. We
thank all of our stakeholders for their continued support and now
look forward to publishing final results for the year ended 31
December 2019, in March 2020.
Enquiries:
Alpha FX Group plc via Alma PR
Morgan Tillbrook, Founder and CEO
Tim Kidd, CFO
Henry Lisney, COO
Liberum Capital Limited (Nominated Adviser and Sole Broker) Tel:
+44 (0) 20 3100 2000
Neil Patel
Richard Bootle
Kane Collings
Alma PR (Financial Public Relations) Tel: 07780 901979
Josh Royston
Helena Bogle
Rebecca Sanders - Hewett
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.
Notes to Editors
Alpha is a foreign exchange and payments specialist focused on
helping organisations manage their currency exposures more
effectively. The Group's primary client base consists of corporates
and institutions that have a requirement to convert currency for a
commercial purpose, such as buying or selling goods and services
overseas, repatriating profits, or expatriating payroll. 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 household brands.
[1] The Group exclude Training Accounts (those that have
generated less than GBP10,000 in revenue since being onboarded) in
order to provide a clearer picture of client numbers for the
purpose of these figures.
[2] Since Admission, the Company has used the term "learning
curve" to define the trend by which employee performance naturally
increases (in revenue terms) in line with tenure.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTKKOBQOBKDADK
(END) Dow Jones Newswires
January 08, 2020 02:00 ET (07:00 GMT)
Grafico Azioni Alpha (LSE:ALPH)
Storico
Da Feb 2024 a Mar 2024
Grafico Azioni Alpha (LSE:ALPH)
Storico
Da Mar 2023 a Mar 2024