(Alliance News) - Asset management consulting firm Alpha Financial Markets Consulting PLC on Wednesday reported a drop in interim profit on acquisition costs but it achieved strong underlying growth.
In the six months to September, Alpha FMC's pretax profit slipped 27% to GBP4.9 million from GBP6.7 million. This was after the company acquired Axxsys Ltd in June - resulting in a 32% year-on-year rise in administration expenses to GBP11.1 million.
Adjusted pretax profit increased 6.0% to GBP8.8 million from GBP8.3 million. Adjusted earnings before interest, tax, depreciation and amortization grew 12% year on year to GBP9.5 million.
Revenue grew 8% year on year to GBP42.4 million from GBP39.0 million, with the company's North America revenue jumping 39% to GBP6.9 million on the back of Canada-based Axxsys. Alpha FMC's core UK market revenue grew 2.0% year on year to GBP24.7 million. Europe & Asia revenue increased 11% to GBP10.8 million.
At the end of the first half, the company's consultant headcount stood at 418, 19% higher than the 352 reported at the same point a year prior.
The company added it is "pleased" with its domestic client base.
Alpha FMC upped its interim dividend by 9.9% to 2.10 pence from 1.91p the year before.
Chief Executive Euan Fraser said: "Since the group's admission to AIM in October 2017, we have remained committed to growing the business in scale and strength across our service proposition and to investing in our people.
"In the course of those two years, we have delivered strong revenue and adjusted Ebitda growth of over 45% and 60% respectively, while significantly increasing headcount and expanding the business practices from nine to 13."
Fraser said this strategy has resulted in a "good set" of interim results, despite a global environment of sustained political uncertainty.
He continued: "We are pleased to be reporting on a period in which we have continued to make great strategic progress: acquiring a new business in Axxsys, which added new offices in Copenhagen and Toronto, launching a Pensions & Retail Investments practice and growing our highly skilled team of consultants by 19%; and completing recently a further acquisition of Obsidian Solutions Ltd."
Looking ahead, Fraser said the company's trading is in line with board expectations, and is confident of further growth.
Shares in Alpha FMC were 1.6% higher in London on Wednesday at 196.00 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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Alpha Financial Markets Consulting (AFM)