Alpha FX Group PLC – AFX – Full Year Results

Alpha FX Group PLC – AFX – Full Year Results

Alpha FX Group plc (AIM: AFX), a provider of FX risk management and alternative banking solutions to corporates and institutions internationally, is pleased to announce its audited Full Year results for the year ended 31 December 2020.

Financial Highlights

·    Group revenue up 31% to £46.2m (2019 £35.4m)

·    Underlying* profit before tax up 20% to £17.5m (2019 £14.6m)

·    Reported profit before tax up 27% to £17.1m (2019 £13.5m)

·    Underlying profit before tax margin of 38% (2019 41%)

·    Basic earnings per share up 15% to 31.7p (2019 27.7p) and on an underlying basis 32.8p (2019: 30.1p)

·    Final dividend of 8.0 pence per share, payable on 14 May 2021 to shareholders on the register as at 16 April 2021

Operational highlights

·    16% increase in client numbers, from 648 to 754**

·    Average revenue per client grew by 12%

·    32% increase in average employee headcount, from 102 to 135

·    44% of employees hold a long-term equity interest in the business***

·    Solid cash position and debt free with £91m net assets and £52m in free cash

·    Cash conversion of 100%, excluding the impact of our Norwegian client (2019 72%)

·    Canadian office launched in 2018 now profitable for the full year

·    Alpha Platform Solutions launched in 2018 now profitable and grew year on year revenues by over 600%

* Underlying excludes the impact of exceptional property related costs in the prior year and non-cash share-based payments.

** The Group exclude Training Accounts (those that have generated less than £10,000 in revenue since being onboarded) in order to provide a clearer picture of client retention for the purposes of these figures.

*** The Group defines a 'long-term equity interest' as an equity stake: held prior to the Company's IPO; or held in the Group's B, C or E growth share scheme; or shares owned directly in one of the Group's trading subsidiaries.

Outlook

The success of our investments to date has ensured that the market opportunity for Alpha remains strong, and our business resilient, even under the most testing conditions.

Whilst COVID-19 provides a continuing cause for caution across the world, the Group has made an excellent start to the year.  Subsequently, the Board remains optimistic that, providing the situation under COVID-19 does not deteriorate, the Group is on track to deliver another strong year of growth.

Morgan Tillbrook, Chief Executive Officer of Alpha FX, commented:

"For many companies across the world, 2020 has represented their greatest challenge to date, and Alpha was no different. However, what I witnessed last year was a team that grew more ambitious, more determined and more connected with every challenge that was thrown at them. The result that the market will see today was another year of consecutive growth across all divisions, and I am naturally delighted with this. However, I believe the long-term benefits for our team and culture, having overcome this experience together, will prove far more valuable still."

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