Foreign exchange service provider Alpha FX Group PLC (LON:AFX) announced its results for the six months ending June 30, 2021, which showed solid performance in terms of revenue and earnings growth.
According to an investor update, the company was able to amass a total revenue of £46 million. This figure was up 35% over the six months through June 2021, which was reported at £43 million the previous year.
Alpha FX had its underlying profit before tax up 16% to £17.8 million compared to £15.3 million a year earlier.
As per the report, the number of Alpha FX’s risk management clients increased 11%, from 881 to 975. Alternative Banking Solutions accounts also increased 75% from 1,746 on December 31 to 3,061 by the end of June 2022.
Average revenue per client grew by 32% on a yearly basis. To further solidify its presence in Europe, the FCA-regulated firm recruited more staff to meet demand with the headcount rising over the year. As a result, 74 new heads were added during the period, taking total headcount to 288. This compared to 67 heads added in the whole year in 2021.
Alpha FX also revealed that its Luxembourg and Australia offices are progressing closer towards their official launches, with significant investment already made to set up regulatory licenses and office space.
Alpha FX strengthens regulatory profile in the UK
Commenting on the results, Morgan Tillbrook, Chief Executive Officer of Alpha FX said: “Our highly decentralised 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.”
In 2017, Alpha FX obtained its regulatory license from the Financial Conduct Authority (FCA) in Britain. The authorisation came just three months after the firm began the live trading of its shares on the AIM market of the London Stock Exchange (LSE).
The UK-based FX service provider, which manages exchange rate risk for domestic corporates, is now operating as a BIPRU investment firm. This was the third regulatory authorisation that Alpha FX Limited has applied for and obtained in order to build up and expand its global business. The company is licensed by the FCA as an authorised payment institution, and is also registered with HM Revenue and Customs as a money services business.
The group caters to a wide range of clients, including medium sized corporates that deal with currency conversion, international commerce, and payrolls.