Alpha Group expects revenue for FY22 to increase 27% to £98M
Alpha Group expects revenue for the full year to increase 27% to approximately £98m (2021: £77.5m), operating profit to be in-line with expectations and profit before tax (including interest) to be ahead.
The company commented:
“We believe it would be a missed opportunity to not bring forward investment in our operations (in particular in our Alternative Banking Solutions division), originally planned for 2024/25 and beyond. This investment is already underway and is focused on accelerating future revenue growth and strengthening the long-term scalability and sustainability of our business. Furthermore, in the event our Operating Profit (which excludes interest) exceeds current market expectations for 2023, we will look to make additional investments in discretionary initiatives (e.g. marketing campaigns), designed to further accelerate growth, without becoming embedded into our cost base”.
Trading within Alpha Group’s FX Risk Management (FXRM) division has produced strong results, with revenues increasing to approximately £69m (2021: £57m) and client numbers increasing to 1,050. Underpinning this growth were some solid dynamics: a reduction in overall client concentration, a continued increase in average revenue per client, and further increases in the average revenue generated by Alpha Group’s Front Office sales team in their first, second and third years.
Alpha Group also looks forward to launching its sixth FXRM office in Madrid later in the year. The Madrid team will be led by three highly experienced, long-term Alpha employees who have been successfully penetrating these markets from Alpha Group’s London HQ since 2017, and therefore have already built up a sizeable Spanish speaking client base.
Alpha Group also noted the solid performance of its Alternative Banking Solutions division, with live accounts invoiced increasing to 4,200 and revenues increasing to approximately £29m (2021: £20m). The ABS 2022 performance included a record month in December for both new accounts and revenue. This encouraging performance continued into 2023 with a very strong start to January.
Morgan Tillbrook, Founder & Chief Executive Officer of Alpha, said:
“2022 continued Alpha’s thirteen consecutive years of strong organic and profitable revenue growth. Whilst there is no doubt the world has moved into a more challenging macro-environment, we have proven our resilience, even when faced with unprecedented challenges. Importantly, whether it’s exchanging currency, holding accounts, or making payments, businesses will always need to carry out these activities. Indeed, managing them efficiently and effectively often becomes even more important in a challenging environment.
As a business, we are in the strongest position we have ever been in, and with our growing number of products and geographies still barely scratching the surface of our addressable market. Moving into 2023 and beyond, we have all the foundations in place to deliver predictable, defensible, long-term growth and I am therefore looking forward to the year ahead with confidence.”