(Sharecast News) - Foreign exchange risk management and alternative banking provider Alpha FX Group updated the market on its performance in 2020 on Tuesday, reporting continued strength since its last update in early December.
The AIM-traded firm said revenue for the full year was expected to be around £46m, with underlying operating profit to be "slightly ahead" of the most recent expectations.
Growth for the year came from both its foreign exchange 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, Alpha FX said client numbers increased by 16% during the year, to 754 from 648.
Alpha said it remained profitable, debt-free, and "extremely well-capitalised", with around £48m in its own free cash immediately available on its balance sheet.
Due to the growing traction of its alternative banking solutions, the company said it was naturally seeing an increase in the proportion of products sold that were readily convertible into cash, in particular spot transactions, which was providing accelerated cash conversion to support its growth.
"Despite the challenges faced, the team ensured 2020 was another consecutive year of strong growth across all divisions of the business," said founder and chief executive officer Morgan Tillbrook.
"The lifeblood of Alpha's success is our people and I am extremely proud of our team for rising to the challenge to deliver in the way they have.
"It is a real privilege to lead the group and I believe the progress made this year will set us in very good stead long into the future."
Alpha FX reiterated its intention to reinstate a dividend policy at the time of its full-year results in March.
At 1424 GMT, shares in Alpha FX Group were down 3.52% at 1,370p.
2 Sep 2021 14:55