Alpha FX profits surge as firm expands to new markets

(Sharecast News) - Foreign exchange service provider Alpha FX reported a 73% improvement in revenue to £23.5m in its audited full-year results on Wednesday.The AIM-traded firm said its underlying operating profit in the 12 months ended 31 December was 48% higher than the prior year at £10.0m, with reported operating profit improving 72% to £9.7m.Its underlying operating profit margin for the period was 43%, down from 50% year-on-year, and on a reported basis the margin fell to 41% from 42%.Underlying basic earnings per share were 30% higher than 12 months earlier at 22.7p, with the figure on a reported basis rising to 21.8p from 14.2p.The board declared a final dividend of 4.6p per share.On the operational front, Alpha FX claimed a 55% increase in client numbers, to 482 from 310, while its headcount increased to 82 from 51.It said 51% of its employees were now partners in the business, and added that new headquarters had been secured at the Brunel Building in Paddington, London, which would be ready for occupation in the third quarter of 2019.The company also launched its institutional division during the period, which the board said expanded its service offering to cover funds and institutions.A new office was opened in Toronto, focusing on the Canadian market, and the firm also launched its international payments platform, Alpha Pay.Looking ahead, the Alpha FX board said the company's "strong performance" to date demonstrated the appeal of its products and services in existing as well as new verticals and geographies.It said it was currently "barely scratching the surface" of its potential, as the business volumes represented small proportions of every market in which it operated.Alpha FX said its new verticals and geographies increased the potential size of its addressable market further still, adding that it would continue to invest accordingly to take full advantage of the growing market opportunity.The first quarter had begun "well", the board said."I'm very happy with the progress we have made during the year," said chief executive officer Morgan Tillbrook."As well as once again delivering strong revenue and profit growth, the impact of the investments made in the previous year highlight the strength of our strategy, and the returns that we are seeing give us great confidence for the future."