Alpha FX sees strong growth as customer numbers rise

Alpha FX Group reported a 68% improvement in group revenue in its full-year results on Wednesday, to £77.5m, as its client numbers and average revenue per client grew.

The AIM-traded firm said its underlying profit before tax was up 91% year-on-year for the 12 months ended 31 December at £33.4m, while its reported profit before tax was ahead 94% at £33.2m.

Its underlying profit before tax margin grew to 43% from 38%, and its reported profit before tax margin was 43%, rising from 37% in 2020.

Basic earnings per share came in 82% higher at 57.7p, and underlying basic earnings per share were up 78% at 58.3p.

The board declared a final dividend of 8p per share, payable on 13 May to shareholders on the register on 19 April, making for a total dividend for 2021 of 11p - up from distributions of 8p per share in 2020.

Operationally, Alpha FX said client numbers increased 27% through the year to 958, while its average revenue per client was up 32%.

It recorded a 36% increase in its average employee headcount to 184, with 36% of its employees holding a long-term equity interest in the business.

Alpha FX said it was in a “strong” cash position at year-end, adding that it was debt-free with net assets of £109.8m.

After the year ended, the company launched a new office in Milan, with further office launches in Luxembourg and Australia planned for later in the year.

“We have consistently delivered year-after-year, even in the most testing of macro environments, and 2021 was no exception,” said chief executive officer Morgan Tillbrook.

“Our capabilities, cash position and governance have never been stronger - bolstered by a healthy and balanced management bandwidth and clear and considered strategy.

“It's a very privileged position to be in, and one I know didn't happen by chance.”

At 1226 GMT, shares in Alpha FX Group were up 11.22% at 1,735p.