(Alliance News) - Alpha Financial Markets Consulting PLC on Wednesday said it expects to see annual net fee income growth of up to 5% from a year earlier, citing improved trading conditions.
However, the Paris-based asset and wealth management and insurance consultancy also expects adjusted earnings before interest, tax, depreciation and amortisation of around GBP42 million to GBP43 million in the financial year ending March 31, down from GBP46.6 million but at a "slightly improved" margin on the first half
Shares were down 11% to 331.00 pence each in London on Wednesday morning.
As previously reported, it said the global consulting market has experienced a "more competitive environment during the current financial year and the supply and demand dynamics continue to rebalance."
The company pointed to a longer sales cycle with trading starting "more slowly than planned" in January and a number of new client projects now expected to start in its financial 2025.
"While consultant utilisation improved in [the third quarter] close to target levels, the slower start has resulted in lower than anticipated utilisation at the beginning of [the fourth quarter]. Overall utilisation in [the fourth quarter] is now expected to remain consistent with [the third quarter], with an improving trend through the rest of the quarter," Alpha Financial Markets Consulting said.
"The group continues to see robust client demand and has seen higher sales wins in recent months, while maintaining a strong pipeline of new business opportunities. These factors, together with the strong long-term structural growth drivers that underpin demand for Alpha's services and the group's compelling proposition to clients, gives us confidence that the group remains well positioned for continued growth, in line with our ambition to double the business again by 2028."
Chief Executive Officer Luc Baque commented: "While trading is improving in the second half it has not recovered at the pace we envisaged when reporting our interim results, as the market continues to rebalance supply and demand. However, we continue to see improving market conditions and with the Group's ongoing strong pipeline, leading expertise, strong propositions and multiple growth opportunities, we remain well positioned for future growth."
By Greg Rosenvinge, Alliance News senior reporter
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Alpha Financial Markets Consulting (AFM)