Shares of FX risk management and payment solutions Alpha FX Group plc rose by about 5% in early Wednesday trading on the LSE, after the London based company released its 1H-2020 results and a somewhat rosy outlook for the rest of the year.

Overall, Alpha FX group revenue was up 16% YoY to £18.0 million (H1 2019: £15.6m). Underlying operating profit came to £6.1 million (H1 2019: £6.7 million) after deducting a temporary provision of £0.5 million for the debt of a Norwegian client referenced in the announcement of 2 April 2020. All cash repayments of the debt due from the Norwegian client have been received on schedule.

The company’s Alpha Payment Solutions reported consecutive record revenue quarters in Q1 and Q2 and grew operating profit margin to 38%.

Overall, the group was profitable throughout the period and is well capitalised and debt free, with net assets in excess of £80 million and £37.0 million of own free cash on the balance sheet.

Client numbers at Alpha FX increased during the period from 648 to 671.

Regarding its navigation of the COVID-19 pandemic, management stated that strong business continuity planning and cloud-based infrastructure enabled 100% of staff to transition to remote working within 24 hours, without compromising service levels, following the outbreak of COVID-19. The company completed migration away from both external and internal technology contractors, with all technology team members now full-time employees based at Alpha FX London HQ.

Regarding outlook, management stated that after a strong Q1, trading in Q2 was marginally down against the comparable period, following the impact of COVID-19. However, as the world begins to recover from the impact of COVID-19, the company has seen the group’s performance return to the levels seen in Q1, with a strong group performance recorded in both July and August. Overall, the company said it is “confident in the full year outcome.”

Morgan Tillbrook, Chief Executive Officer of Alpha FX commented:

“I am pleased to report on another period of progress delivered across all areas of the business. Whilst COVID-19 presented us with some challenges, the dedication and hard work of all employees ensured we were able to continue servicing our clients to a high standard and finish the period stronger than originally anticipated in the early stages of lockdown.

To our investors, clients and the team that I have the privilege of working with on a day-to-day basis – thank you for your continued support.  Your belief in our business and understanding of our long-term growth ambitions is inspiring and fuels our goal to continue taking Alpha to new heights.  Whilst uncertainty remains, we have proven that we have the resilience and drive to succeed, and I look ahead to the rest of the year with confidence.”

Alpha FX’s full 1H 2020 disclosure release can be seen here.