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Alpha FX Sets Up New Division As It Declares Maiden Dividend For 2017

21st Mar 2018 11:28

LONDON (Alliance News) - Foreign exchange service provider Alpha FX Group PLC posted a rise in profit in 2017 on growth in revenue, as it also announced a new operating division and a new chief operating officer.

The results are Alpha FX's first since it listed in London last April.

Alpha FX posted pretax profit of GBP5.6 million in 2017, having recorded a figure of GBP4.3 million in the year before. Revenue increased by 60% to GBP13.5 million.

The company is paying a maiden final dividend, having paid out a first ever interim return for its first half, of 3.4 pence per share, taking the year's total to 4.9p.

Alpha FX also announced the launch of a division to support institutional clients, expanding its addressable market. The division will not charge clients consultancy or software subscription fees, but will monetise its service through a margin on transactions.

On top of this, the firm has moved Operations Director Henry Lisney to chief operating officer. Lisney joined the firm in 2013 as a portfolio manager.

Client numbers increased 39% year-on-year during 2017, taking the total number to 310. Given revenue grew at a higher rate, this shows the company has won bigger clients doing bigger trades.

Alpha FX is to continue expansion in both the core UK market as well as overseas, and Europe, it said, is a particularly "exciting" area of focus, and in the second half it took on its first European clients.

Going forward, Alpha said it has still only penetrated a small proportion of the market, and the firm said it is confident going into 2018 given the year has begun positively across all areas.

Chief Executive Morgan Tillbrook said: "I'm delighted with the progress that Alpha has made during the year. As well as delivering strong revenue and profit growth we have invested strategically across all aspects of our business to enable sustainable future growth, whist maintaining margins. The benefits of our IPO in April 2017 continue to exceed our expectations."

Shares in the company were trading at 530.00 pence per share on Wednesday, up 7.7%.


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