Alpha FX Group (LON: AFX), a provider of FX risk management, accounts and payments solutions to corporates and institutions, generated £17.8 million in pre-tax profits in the first six months of 2022, which is an increase of 16 percent.
However, the pre-tax profit margin dropped to 39 percent from the previous year’s 43 percent. The company cited an increased investment in people and technology behind this decline. The basic earnings per share jumped 21 percent to 33.3 pence.
The interim result published on Monday came after a trading update was provided by the company when it had already revealed the revenue figure that increased by 35 percent in the period to touch £46.1 million. It includes a recharge interest of £1.4 million.
The revenue from FX risk management increased by 31 percent to £32.3 million, while alternative banking solutions brought in £13.9 million, which is 47 percent more than the previous year.
Incoming Clients
Additionally, the company’s numbers improved on the operational front as well. Its FX risk management client number increased 11 percent to 975, whereas alternative banking accounts jumped from 1,746 at the end of December 2021 to 3,061 at the end of June 2022.
On top of that, it launched a new Milan office last March, which is now profitable and is on track to have a physical presence in Luxembourg and Australia. In addition, it increased the total headcount to 288.
“It is a privilege to report on another strong set of results, and I would like to thank our team for all their hard work in delivering this performance,” said the CEO of Alpha FX, Morgan Tillbrook.
“Our highly decentralized structure has helped us to evolve our business model and strategy in a way that is delivering significant competitive advantage and momentum whilst giving us the clarity and confidence to increase the rate at which we are investing for long-term growth. I am, therefore, confident we are in a strong position to sustain our company's growth and returns in the long term, whilst continuing to deliver strong performance in the short term.”
