Last checked at 9 Apr 2020 07:00
9 April 2020
Alpha Financial Markets Consulting plc
('Alpha FMC', 'Alpha', the 'Company' or 'Group')
Pre-close trading update for the year ending 31 March 2020
Alpha FMC (AIM: AFM), a leading global provider of specialist consultancy services to the Asset and Wealth Management industry, is pleased to provide its pre-close trading update for the year ending 31 March 2020.
Alpha FMC has performed well and expects to report results in-line with current full year market expectations. The Group has experienced almost no effect on trading from the COVID-19 related preventative measures, given the swift transition to effective remote working by our clients and consultants and the timing of the Group year end. The Group ended the year with approximately £20m net cash or c £25m total cash balances having recently drawn its £5m revolving credit facility to prudently maximise liquidity.
At the time of this announcement, the Group has seen minimal change to revenue levels. In recent weeks we have observed some lengthening of client approval processes and a few smaller new projects' start dates delayed. Looking ahead, as the impact of COVID-19 continues to evolve, the Board expects that in due course it will impact business development and new business, although this is difficult to fully quantify at this stage. Given that there is no visibility on the lifting of lockdown restrictions, either in whole or in part, and hence the impact on business development is unquantifiable, the Board is withdrawing future financial performance guidance.
Given the unprecedented nature of COVID-19, the Group is taking pre-emptive actions to manage costs in anticipation of reduced activity levels. In addition to limiting recruitment to only a small number of strategic hires and reducing discretionary operational expenditure, from 1 April 2020 the Group's senior leadership team, including the Global CEO and CFO and the Non-Executive Directors, have volunteered to take a temporary 40 per cent reduction in salary to 30 September 2020.
Alpha also welcomes the various COVID-19 response initiatives from governments globally to assist companies. We continue to explore and assess the relevance to the Group, of all forms of relief from governments and will adopt such measures to best protect our people, enhance cashflow and prudently protect the balance sheet, as appropriate.
Alpha will continue to monitor the developing COVID-19 situation closely and will keep the market updated. At this stage, the Board expects to deliver the annual results to 31 March 2020, on a slightly extended timetable than normal, in the second half of June.
Euan Fraser, Global CEO of Alpha FMC, commented:
"I am delighted that Alpha will record another year of growth and meet market expectations for the year ended 31 March 2020. The Group made great strategic progress, acquiring two new businesses, Axxsys and Obsidian, launching its Pensions & Retail Investments practice and growing our highly skilled team, including several key senior hires. We were also particularly pleased with the strong performance from our US business.
Whilst COVID-19 means uncertainty exists over how the coming year will unfold, in the medium term the underlying industry trends of cost reduction, increasing regulation and increasing assets under management remain firmly in place, driving ongoing change programmes globally for which Alpha's quality range of consulting services continues to be well placed to advise and best assist our clients' needs.
Our key priority is the overall well-being and health of our staff and ensuring that we follow all governments' guidelines. Our team deserves a huge thank you for adapting and managing so well to these exceptional times, whilst continuing to support our clients successfully."
Enquiries:
Alpha Financial Markets Consulting plc | +44 (0)20 7796 9300 |
Euan Fraser, Global Chief Executive Officer John Paton, Chief Financial Officer | |
Temple Bar Advisory | |
Alex Child-Villiers | +44 (0)7795 425 580 |
William Barker | +44 (0)7827 960 151 |
Sam Livingstone | +44 (0)7769 655 437 |
Grant Thornton UK LLP (Nominated Adviser) | +44 (0)20 7383 5100 |
Philip Secrett Richard Tonthat Harrison Clarke Seamus Fricker | |
Berenberg (Broker) | +44 (0)20 3207 7800 |
Chris Bowman Toby Flaux Alix Mecklenburg-Solodkoff |
This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014.
About Alpha FMC:
Alpha FMC is a leading global provider of specialist consultancy services to the asset and wealth management industry.
With over 400 consultants across twelve offices spanning the UK, Europe, North America and Asia, Alpha FMC has the largest dedicated team in the industry. Alpha FMC has provided consultancy services to 350 clients, including 80% of the 20 largest global asset managers by AUM and a range of other buy-side firms.
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