5th Sep 2018 13:25
LONDON (Alliance News) - Alpha FX on Wednesday reported a rise in interim profit and revenue after making "considerable progress" in the first half of the year.
The UK-based foreign exchange service provider posted a pretax profit increase of 63% in the six months ended June to GBP3.9 million from GBP2.4 million a year before.
Revenue increased 54% to GBP9.7 million from GBP6.3 million a year prior.
Alpha FX said revenue growth was driven by increasing client numbers in both the UK and overseas as well as a "promising start" made by the company's new institutional team. Alpha FX said the change in client commission rates has not affected revenue growth.
The company's derivatives desk, launched in August 2017, also aided revenue growth.
Alpha FX believes its investment in its technology continues to be a "key differentiator" for the company's ability to acquire and retain clients. Alpha FX increased its number of clients in the period to 392 from 310.
The company declared an interim dividend of 1.9 pence per share, up from the 1.5p declared a year prior.
Looking ahead, Alpha FX is "highly confident" of "at least" meeting its full year expectations, with trading in the second half "positive".
Chief Executive Officer Morgan Tillbrook said: "The first half of the year has seen considerable progress across all facets of the business. Revenue growth has been pleasing and justified the investment decisions made in the prior financial year. Driven by client demand, we continue to make advances in regulatory approvals and technology in order to enhance our product offering.
"This strengthens relationships with existing clients and enables us to increase revenues and also cater for a more diverse range of requirements and thereby service a wider range of new clients. At the same time, we continue to increase our addressable market by attracting entrepreneurial talent who can leverage our technology, infrastructure and brand to access wider markets."
Shares in Alpha FX were down 2.5% at 526.40p each on Wednesday.
Related Shares:
AFX.L