LONDON (Alliance News) - Specialist asset management consultancy firm Alpha Financial Markets Consulting PLC hiked its dividend Wednesday after profit and revenue both jumped, whilst it also announced it had acquired peer Axxsys Ltd for at least GBP9 million.
For the year ended March, pretax profit multiplied to GBP12.5 million from GBP1.5 million the year prior. This was after revenue leapt 15% to GBP76.0 million from GBP66.0 million the year before.
Profit performance was helped by a sharp fall in finance costs to GBP55,000 from GBP7.1 million the year prior. This followed its admission to trading on the AIM market of the London Stock Exchange in October 2017, which subsequently saw existing debt either repaid or converted to shares.
"We are pleased with the performance of the group and to be able to report on another year of profitable growth," Alpha Financial Chief Executive Officer Euan Fraser said.
"This strong growth comes despite the current political uncertainty and shows that Alpha is well positioned to help our clients respond to change in their industry," Fraser added. "We have continued to invest in growth through additional hires, expansion of our services and, following client demand, we have launched two new business practices and opened an office in Zurich.
Alpha Financial proposed a 4.09 pence per share final dividend, up 11% from 3.69p the year prior. For the full year, the dividend rose 16% to 6.00p from 5.17p the year before.
"We have been able to deliver growth in the number of clients that we support, our repeat client contributions remain strong and we look forward positively to the year ahead", Fraser continued.
In a separate announcement on Wednesday, Alpha Financial announced it had acquired investment management consultancy Axxsys for an initial GBP9.0 million with a further earn-out consideration. The deal will be immediately earnings enhancing.
Alpha Financial did not provide further information on the earn-out consideration. The initial consideration will be paid in tranches across two years.
"This acquisition delivers exceptional value for both organisations, and demonstrates our focus on continuing Alpha's growth through highly selective acquisitions, as well as via continued organic expansion," CEO Fraser explained.
"Axxsys brings a range of service propositions and skillsets which are complementary to Alpha," Fraser continued. "This transaction, which was agreed at an attractive valuation, also strengthens the group's global platform for servicing clients in Europe, particularly the Nordics, and North America, with additional offices in Denmark and Canada, and creates a strategic growth opportunity."
Shares in Alpha Financial were 1.0% lower at 228.75 pence on Wednesday.
Alpha Financial Markets Consulting (AFM)