Alpha FX Group plc (LON:AFX), a provider of FX risk management, accounts and payments solutions to corporates and institutions internationally, announces it has recommenced its trading relationship with a key Norwegian client.

In March 2020, as a result of the impact on the client from the onset of COVID-19, the Group entered into a settlement agreement with the client whereby weekly repayments would be required to be made until June 2022 in respect of their obligations for unpaid margin. Since this date, the client’s financial standing has continued to strengthen, and they have consistently met all 104 of their weekly repayment obligations on time. As a result, the gross balance outstanding as at 1 April 2022 has been reduced to £2.9 million.

Thanks to the client’s strong financial standing and the consistency with which they have settled and reduced their outstanding liability, Alpha FX is recommencing its trading relationship. Furthermore, as a gesture of goodwill in re-establishing a trading relationship, Alpha FX has agreed to allow the client to spread their remaining weekly repayments, originally contracted to expire at the end of June 2022, until the end of December 2022.

Alpha FX says it has no concerns regarding the client’s ability to fulfill its obligations under the terms of the original agreement.

Morgan Tillbrook, Chief Executive Officer commented:

“Having learnt from the experience of having too much concentration to one client in March 2020, we have instituted limits on the value of our exposure to any client regardless of the strength of their credit standing. Additionally, since that experience, we have added further enhancements to our risk processes and controls with the aim of further protecting against such an occurrence in the future. We also continue to provide investors and stakeholders with improved visibility and assurance, by publishing our top 20 client and currency exposures on our website, the largest of which currently represents 4.86%.”