(Sharecast News) - Foreign exchange risk management, accounts and payments specialist Alpha FX said in a trading update on Friday that its revenue was growing "strongly", in line with its recently-upgraded expectations, with "consistent" month-on-month growth against the prior year.
The AIM-traded firm said profit for the year ending December was expected to be "materially ahead" of expectations, as a result of the interest rate environment generating additional income from alternative banking's overnight cash balances.
Client default rates remained in line with expectations at the start of the year, despite subsequent macroeconomic pressures and extreme currency market volatility.
The group said it was continuing with its accelerated investment programme in its alternative banking division, as outlined in its first half results statement, alongside its investments in the global expansion of the foreign exchange risk management division.
Alpha FX said its regulatory licence had now been granted in Australia, with the team expanding and already generating revenue.
"I am pleased that we have continued to deliver on our upgraded revenue expectations, highlighting our robust business model during a period of macro volatility, with both our divisions continuing to perform strongly into the second half," said chief executive officer Morgan Tillbrook.
"Our tried and tested strategy in FX risk management continues to be successful within the current macroeconomic conditions, and we remain committed to ensuring our clients are advised appropriately whilst continuing to manage our own risk profile.
"At the same time, we have continued to grow the number of our Alternative Banking customers in response to the significant market demand."
At 1319 BST, shares in Alpha FX Group were up 9.6% at 2,044p.
Reporting by Josh White at Sharecast.com.
