Alpha FX Group registers 90% Y/Y increase in revenues in H1 2021
Alpha FX Group plc (LON:AFX), a provider of FX risk management and alternative banking solutions to corporates and institutions internationally, today published its unaudited Interim Report for the six months ended 30 June 2021.
- The Group reported revenue of £34.2 million for the first six months of 2021, up 90% from the result reported for the equivalent period a year earlier. The increase was driven by a broad recovery in client activity post lockdown and strong growth across all divisions.
- Underlying profit before tax was up 214% to £15.4 million in the first half of 2021reflecting the operational gearing of the business.
- Reported H1 2021 profit before tax jumped 225% to £15.3 million (H1 2020: £4.7m).
- Underlying basic earnings per share for the first half of 2021 amounted to 27.9p, with basic earnings per share of 27.6p (H1 2020: 8.9p).
Let’s note that the Group’s FX Risk Management division had a strong half, with revenues up 48% to £24.7 million, helped by recovering client trading activity across Alpha FX Group’s core UK client base and growth in its overseas offices.
The Group’s Corporate London division continues to perform strongly with revenues up 29%. Since the beginning of H2 2020, the overall market opportunity has been broadly consistent with pre-COVID levels. Notable exceptions include tourism and hospitality, but this has been more than offset by increased activity in other sectors. Let’s recall that Alpha FX Group posted a set of strong financial metrics for 2020 too.
In terms of outlook, the Group stated:
“Our momentum from the first half has continued into H2, and the Group’s trading has continued to be strong, driven by a healthy demand for our services from existing and new clients. In order to maximise our long-term growth opportunities, we will continue to re-invest across all divisions in the business in H2 and beyond”.
Morgan Tillbrook, Chief Executive Officer of Alpha FX commented:
“I am proud to report on a strong set of results for the Group which saw growth and profitability achieved across all divisions. Since our IPO in 2017, we have gone a long way to establish Alpha as a leading provider of FX Risk Management solutions, and our strategy to grow that reputation internationally continues to gain momentum.
Our movement into Alternative Banking in 2020 represented new, unchartered territory, and questions may therefore have been raised as to whether the success we have achieved as a high-quality, people-led FX consultancy could be replicated when it came to developing technology and products. Ultimately, I believe the results published today show that it can”.