Page 1

RNS Number : 2997K Alpha FX Group PLC 01 September 2021 1 September 2021 Alpha FX Group plc ( " Alpha FX " or the " Group " ) Interim Report Alpha FX Group plc ( AIM : AFX ) , a provider of FX risk management and alternative banking solutions to corporates and institutions internationally , today announces its unaudited Interim Report for the six months ended 30 June 2021 . Financial Highlights Group H1 revenue up 90 % to £ 34.2m ( H1 2020 : £ 18.0m ) supported by a broad recovery in client activity post lockdown and strong growth across all divisions . Underlying * H1 profit before tax up 214 % to £ 15.4m ( H1 2020 : £ 4.9m ) reflecting the operational gearing of the business . Reported H1 profit before tax up 225 % to £ 15.3m ( H1 2020 : £ 4.7m ) Uplift in H1 profit before tax margin to 45 % ( H1 2020 : 27 % ) benefitting from short - term lower travel , hiring and entertainment expenses . Underlying H1 basic earnings per share of 27.9p in the period ( H1 2020 : 9.5p ) , with basic earnings per share of 27.6p ( H1 2020 : 8.9p ) . The Group is well capitalised and debt free , with net assets in excess of £ 98m and £ 67m of own free cash on the balance sheet . Cash conversion continues to be strong , supported by the growth of the Alternative Banking division . Proposed interim dividend of 3.0p ( H1 2020 : nil ) . Operational Highlights Client numbers ** increased during the period from 754 ( December 2020 ) to 838 as at 30 June 2021 . Maintained a diversified client base drawn from a range of sectors . Our Corporate team continued to serve as the incubator for future leaders to launch Alpha into new markets , reflected in the success of our overseas offices in the first half . Launched new end - to - end platform to drive scalability of high growth Alternative Banking following decentralisation *** of the technology stack . Milan office set to open in H2 subject to regulatory approval A healthy outlook as we emerge from the pandemic , with the Group's market dynamics consistent with pre - COVID environment and with our addressable market opportunity expanding . * Underlying excludes the impact of non - cash share - based payments . ** The Group exclude Training Accounts ( those that have generated less than £ 10,000 in revenue since being onboarded ) in order to provide a clearer picture of client retention for the purposes of these figures . **** Decentralisation refers to the process of dividing the business into two separate divisions - FX Risk Management and Alternative Banking - each with their own dedicated technology , infrastructure and teams . Outlook As we continue to emerge from the pandemic , activity has normalised and the market opportunity is ever larger . Our momentum from the first half has continued into H2 , and the Group's trading has continued to be strong , driven by a healthy demand for our services from existing and new clients . In order to maximise our long - term growth opportunities , we will continue to re - invest across all divisions in the business in H2 and beyond . We remain confident in the direction of travel of the business and the full year outcome , in line with our revised expectations reported in the Group's trading update announced on 14 July 2021 . Morgan Tillbrook , Chief Executive Officer of Alpha FX commented : " I am proud to report on a strong set of results for the Group which saw growth and profitability achieved across all divisions . Since our IPO in 2017 , we have gone a long way to establish Alpha as a leading provider of FX Risk Management solutions , and our strategy to grow that reputation internationally continues to gain momentum . Our movement into Alternative Banking in 2020 represented new , unchartered territory , and questions may therefore have been raised as to whether the success we have achieved as a high - quality , people - led FX consultancy could be replicated when it came to developing technology and products . Ultimately , I believe the results published today show that it can . Our decentralisation effort has no doubt played a key part in our progress , creating two highly focused and agile teams with clearly defined strategies for growth . But when we take a step back , I believe our success to date comes down to a far simpler truth - whether it's providing a high - quality consultancy service or a high - quality technology offering , the common denominator is always the same - people . At Alpha , we are privileged to be working with some of the sharpest , hardest - working ( and nicest ! ) people in the industry . They have , and always will be our greatest strength . Page 1 of 13