Full Year Audited Results-ALPHA FINANCIAL MARKETS CONSULTING PLC

Full Year Audited Results-ALPHA FINANCIAL MARKETS CONSULTING PLC

AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2023

Excellent double-digit organic growth across all regions

Alpha Financial Markets Consulting plc (AIM:AFM), a leading global provider of specialist consultancy services to the asset management, wealth management and insurance industries, is pleased to report its audited results for the 12 months ended 31 March 2023 (FY 23).

Financial highlights1

·    Revenue increased by 44.8% to £228.7m (FY 22: £158.0m) and net fee income2 increased by 43.9% to £227.2m (FY 22: £157.8m), or 36.1% on a constant currency basis. On an organic3 basis, net fee income grew by 39.6%

·    Gross profit increased by 35.4% to £80.4m (FY 22: £59.4m) at 35.4% margin2 (FY 22: 37.6%), reflecting the easing of utilisation to target levels, alongside continued investment in our growing team

·    Adjusted2 EBITDA increased by 37.5% to £46.6m (FY 22: £33.9m) with 20.5% margin largely consistent with FY 22's 21.5%

·    Adjusted profit before tax increased by 38.6% to £44.0m (FY 22: £31.8m)

·    Adjusted earnings per share increased by 36.4% to 29.27p (FY 22: 21.46p)

·    On a statutory basis, profit before tax increased to £25.8m (FY 22: £14.9m) and basic earnings per share increased to 15.82p (FY 22: 7.69p)

·    Good adjusted cash conversion of 74.0% (FY 22: 112.1%) with adjusted cash generated from operating activities of £32.9m (FY 22: £36.0m), reflecting specific cash outflows, alongside good underlying working capital management

·    Robust balance sheet with a net cash balance as at 31 March 2023 of £59.2m (31 March 2022: £63.5m)

·    In view of Alpha's performance and cash position at the year end, the Board is recommending a final dividend of 10.50p (FY 22: 7.50p)

 

12 months to

31 March 2023

12 months to

31 March 2022


Change

Revenue

£228.7m

£158.0m

44.8%

Gross profit

£80.4m

£59.4m

35.4%

Adjusted EBITDA

£46.6m

£33.9m

37.5%

Adjusted profit before tax

£44.0m

£31.8m

38.6%

Profit before tax

£25.8m

£14.9m

73.2%

Adjusted EPS

29.27p

21.46p

36.4%

Basic EPS

15.82p

7.69p

105.7%

Total dividend per share

14.20p

10.40p

36.5%

 

Operational highlights

·    Double-digit organic net fee income growth across all regions, including North America, a key strategic region for the Group

·    Continued strong growth of client relationships, with the number of clients4 that the Group has worked with increasing to 874 (FY 22: 718) and new client wins spanning the Group's global businesses

·    Continued growth in the Group's insurance offering, supported by the appointment of a Global Head of Insurance Consulting to further the expansion of the proposition

·    Investment in the best talent: consultant5 headcount increased to 994 (FY 22: 760), including the addition of 13 new directors6

·    CEO succession plan and relevant governance changes implemented, including the appointment of a new Global Head of Asset & Wealth Management Consulting

·    Post-year end acquisition of Shoreline, an APAC-based asset and wealth management consultancy, completed in May 2023; integration initiated and progressing well

Outlook

·     Alpha has performed extremely well in the year against a backdrop of ongoing macro-economic uncertainty, and the long-term structural growth drivers that underpin demand for Alpha's services remain very strong

·     Alpha has the best consultants in its chosen industries and an excellent global reputation to address the demand created from those drivers

·     In recent months, the global consulting market has experienced increased levels of competition as a result of overcapacity, which we expect to be the market backdrop in the short term

·     As the global consulting market balances supply with overall demand, the Group will continue to manage appropriately its discretionary spend and hire selectively to invest for the future, in line with our 2028 strategic ambition to double the business

·     While we currently see higher levels of competition and a lengthening sales cycle, we are confident that Alpha's strong client proposition and business strategy will continue to drive market share growth

·     The Group enters FY 24 with resilient trading and a good pipeline of new business opportunities, and the Board remains confident of delivering full-year results in line with current market expectations

Commenting on the results, Luc Baqué, Chief Executive Officer, said:

 "I am very pleased by the financial performance of the business over the year; the Group has exceeded expectations and achieved excellent organic growth across all regions, in particular North America. I am excited to take the helm of Alpha and have the honour of leading its fabulous team; and I am thankful to Euan for his excellent leadership over the last decade and look forward to building on the Group's continued success and leading it through the next growth chapter.

Whilst we have recently seen a lengthening sales cycle and higher levels of competition, we enter FY 24 with resilient trading and a good pipeline of new business opportunities. Our compelling proposition to clients, leading talent base and clear growth strategy give us confidence as we progress towards our 2028 strategic goals."

Commenting on the results, Euan Fraser, Chief Executive Officer to 31 March 2023, said:

"The past financial year covers the final year of my decade as Alpha's CEO. I am delighted that the Group has experienced such strong growth and a set of financial results that exceeded our expectations. The Group has also achieved, well ahead of plan, the ambition we set out in 2020 to double in size.

I am extremely proud of everyone in the Alpha team for reaching that landmark and I am certain many more will follow. It has been an incredible journey and a huge honour being CEO. Alpha is in very good hands with Luc Baqué - and I for one cannot wait to see where the outstanding talent, commitment and expertise across the Group takes Alpha next."

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