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RNS Number : 3119L Alpha FX Group PLC 12 January 2021 12 January 2021 Alpha FX Group plc ( " Alpha FX " or the " Group " ) Trading Update Alpha FX Group plc ( AIM : AFX ) , a provider of FX risk management and alternative banking solutions to corporates and institutions internationally , today announces a trading update for the financial year ended 31 December 2020 . Performance Following the last trading update on 3 December 2020 , trading has continued to be strong , with revenue for the full year expected to be approximately £ 46m and underlying operating profit slightly ahead of most recent expectations . Growth for the year came from both our FX risk management and alternative banking divisions , despite the former seeing a significant impact in the first half from businesses delaying their trading activity because of the slowdown in global trade as a result of COVID - 19 . Despite the backdrop , client numbers increased by 16 % during the year from 648 to 754 . FX Risk Management Our FX risk management division focuses on supporting corporates and institutions across the UK , Europe and Canada that trade currency for commercial purposes , such as buying or selling goods and services overseas or hedging the underlying value of an asset . We service this marketplace through our corporate and institutional sales teams in London , Canada and Amsterdam . Whilst revenue growth from FX risk management solutions slowed in H1 as businesses delayed their trading activity , H2 saw much stronger growth , with our corporate and institutional teams in London performing well and a strong performance from our corporate team in Canada leading to that office posting a profit for the year . Our team in Amsterdam ( launched at the start of the pandemic in March and now fully operational ) also performed well in its first year , achieving consecutive quarterly revenue growth . Alternative Banking Solutions Our alternative banking solutions division focuses on providing corporates and institutions across the UK , Europe and Canada with a suite of alternative banking solutions covering payments , collections and accounts . Serviced primarily by a specialist team within Alpha Platform Solutions ( formerly named Alpha Payment Solutions ) , the team also benefits the Group from cross- selling to and from our corporate and institutional sales teams . Our alternative banking solutions division also delivered strong growth throughout the year , with Alpha Platform Solutions increasing its traction and stickiness with clients by delivering not just payments but an increasingly wider range of solutions . As a result of the growing traction of our alternative banking solutions , we are seeing an increase in cash conversion , since the offering typically involves transactions such as spot trades and invoicing . Investments & People Since our IPO in 2017 , we have continued to invest in the breadth and depth of our offering and the quality of our team to ensure we can deliver sustainable , long - term growth . Our ability to remain a growth business in 2020 , despite the impact of COVID - 19 , is a testament to this strategy . Accordingly , the Group continued its investment in Back Office headcount , which grew from 50 to 69 during the period to support the ongoing technological development of our alternative banking solutions , and the increase in support required across Compliance , Risk , and Settlements as the business scales . Our Front Office team meanwhile saw a small increase in headcount from 74 to 78. This was largely down to employee attrition rates remaining stable , but new hiring being reduced , owing to the challenge of inducting new salespeople remotely and at a time where people were naturally more reluctant to move from known job security . Ultimately , while the size of the team has not grown as much as we would have liked , we are confident the ' talent density ' within the team has , with many of our more recent starters now making significant traction . Whilst we will continue to grow the team to support the rate of client acquisition , we are confident there also remains significant capacity within the existing team to support considerable growth long into the future . COVID - 19 The Group has proven its resilience and ability to adapt to the challenges posed by COVID - 19 . We are also mindful however that at the height of the pandemic , when lockdown measures were at their peak , growth slowed , particularly on the FX risk management side of the business . With a full lockdown once again in place and infection rates rising , we are now returning to an environment similar to that at the height of the pandemic and naturally anticipate conditions to be more challenging than they were in H2 of last year when restrictions were lower , and infection rates were on the decline . Nonetheless , with COVID - 19 now a more familiar challenge than it was in Q2 2020 and due to the roll - out of vaccinations , we are cautiously optimistic for the year ahead . Brexit The Group has been preparing for a no - deal Brexit for a considerable length of time and is therefore able to continue servicing the vast majority of its European clients . However , the limited scope covering financial services within the Free Trade Agreement means the Group will now be concluding the final set up of a wholly - owned subsidiary established in Malta , with completion expected by the end of Q1 at the latest . Until this time , the business will service European derivative clients Page 1 of 3