Alpha FX stock rises more than 10% following blowout earnings

Foreign exchange service provider Alpha FX Group PLC (LON:AFX) announced its results for the financial year ending December 31, 2021, which showed solid performance in terms of revenue and earnings growth.

Alpha FX

According to the investor update published today, the company was able to amass a total revenue of £77.5 million. This figure was up 68% over the twelve months through December 2020, which was reported at £46.2 million the previous year.

Alpha FX had its underlying profit before tax up 91% to £33.4 million compared to £17.5 million a year earlier.

As per the report, Alpha FX’s client number increased 27%, from 754 to 958. Average revenue per client also 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, it saw 36% increase in average employee headcount, from 135 to 184.

Shares in Alpha FX, which are listed on the London Stock Exchange have traded higher this morning, up by some 10.90% at £1.730. However, the stock had previously descended more than 23 percent over the last six months. In contrast, the return over five years has been impressive. Indeed, the share price is up a very strong 592% in that time. Overall, this reflects the underlying business is doing well enough to support the current price.

Alpha FX strengthens regulatory profile in the UK

Commenting on the results, Morgan Tillbrook, Chief Executive Officer of Alpha FX said: “I am incredibly proud of our team for the results achieved. We have consistently delivered year-after-year, even in the most testing of macro environments, and 2021 was no exception. Our capabilities, cash position and governance have never been stronger – bolstered by a healthy and balanced management bandwidth and clear and considered strategy. It’s a very privileged position to be in, and one I know didn’t happen by chance. I’d therefore like to thank everyone for their hard work and commitment, and look forward to seeing what we can do together in 2022 and beyond.”

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.