Alpha FX revenue growth accelerates in first half
Alpha Group International
2,053.33p
13:50 25/04/24
Foreign exchange outfit Alpha FX saw revenues accelerate in the first half of its trading year, driven by growth in its core UK corporate market.
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Alpha reported on Wednesday that sales for the six months ended 30 June were expected to be approximately £15.6m - a 60% increase year-on-year.
The AIM-listed group said its strong performance was a result of continued growth in its UK corporate market, as well as an acceleration in European revenue from its multi-lingual team. In addition, Alpha said its institutional division also continued to "perform well" and increase revenues.
Alpha also noted that its Canadian office was yet to contribute "meaningful revenue" as the focus of the business remained on recruitment and client acquisition.
As a result of the group moving office at the end of August, Alpha said costs in the second half of the year would increase, as expected.
Despite this, based on its year-to-date performance, Alpha's board expects full-year earnings to be ahead of expectations.
Founder and chief executive Morgan Tillbrook said: "This is another strong period of trading and we remain excited about the prospects of continuing to deliver our strategy throughout the remainder of the year."
Discussing the update, analysts at Liberum raised their target price on the group to 785p from 675p, highlighting the group's ability to grow revenues 60% year-on-year despite the subdued macro backdrop for British firms.
"We upgrade our Target Price to 785p with further potential upside as management starts to evidence the potential of their payments platform and the subsidiary model approach to building-out in new geographies," said Liberum analyst Andrew Bryant.
As of 1025 BST, Alpha shares had climbed 7.59% to 780p.