(Sharecast News) - Consultancy business Alpha Financial Markets Consulting said it still expects to meet full-year market expectations despite a drop in margins in the first half.
The company, which provides specialist consultancy services to the asset management, wealth management and insurance sectors, reported on Tuesday that net fee income grew 8% in the six months to 30 September in the face of a "more competitive environment with a longer sales cycle".
Alpha said that consultant day rates and sales wins were "consistent" through the half.
However, adjusted EBITDA margins fell to just over 17%, down from 20.5% at the end of the last fiscal year and lower than the 21% registered at the half-year stage a year earlier.
Alpha said this was a result of reduced average utilisation - the percentage of time that consultants are billing clients - due to quieter months during the summer.
"Utilisation has ticked up in September from the summer low and is expected to increase further during the second half, normalising to target levels," Alpha said.
"While the global consulting market continues to balance supply and demand, a more positive market sentiment is returning following the summer months. The group continues to see robust client demand and enters the second half with a good 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 in the outlook. Accordingly, the board expects to deliver full-year results in line with current market expectations."
Alpha Financial Markets Consulting (AFM)