Last checked at 7 Feb 2024 07:00
7 February 2024
Alpha Financial Markets Consulting plc
('Alpha FMC' or 'Alpha' or the 'Group')
Trading update
Alpha FMC (AIM: AFM), a leading global consultancy to the financial services industry, provides a trading update for the year ending 31 March 2024 ("FY 24").
As previously reported, the global consulting market has experienced a more competitive environment during the current financial year and the supply and demand dynamics continue to rebalance. A longer sales cycle has remained evident with trading starting more slowly than planned in January and a number of new client projects now expected to start in FY 25. While consultant utilisation improved in Q3 close to target levels, the slower start has resulted in lower than anticipated utilisation at the beginning of Q4. Overall utilisation in Q4 is now expected to remain consistent with Q3, with an improving trend through the rest of the quarter.
Consequently, the Board now expects the Group to deliver FY 24 results showing net fee income growth of up to 5% against the prior year and adjusted EBITDA of approximately £42m - £43m at a slightly improved margin on the first half. In the current market environment the Group has maintained consistent day rates, a selective approach to hiring into key growth areas, and continues to manage actively its cost base. The Group also maintains a strong net cash position.
The Group continues to see robust client demand and has seen higher sales wins in recent months, while maintaining a strong 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 that the Group remains well positioned for continued growth, in line with our ambition to double the business again by 2028.
Luc Baqué, Chief Executive Officer, commented:
"The challenging market environment previously reported remains prevalent. While trading is improving in the second half it has not recovered at the pace we envisaged when reporting our interim results, as the market continues to rebalance supply and demand. However, we continue to see improving market conditions and with the Group's ongoing strong pipeline, leading expertise, strong propositions and multiple growth opportunities, we remain well positioned for future growth."
Enquiries:
Alpha Financial Markets Consulting plc Luc Baqué (Chief Executive Officer) John Paton (Chief Financial Officer) Georgina Sharley (Company Secretary)
| +44 (0)20 7796 9300 |
Investec Bank plc - Nominated Adviser, Joint Corporate Broker Patrick Robb James Rudd Harry Hargreaves
| +44 (0)20 7597 4000 |
Berenberg - Joint Corporate Broker Toby Flaux James Thompson Alix Mecklenburg-Solodkoff
| +44 (0)20 3207 7800 |
Camarco - Financial PR Ed Gascoigne-Pees | +44 (0)20 3757 4980 |
Phoebe Pugh |
This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014.
About Alpha FMC:
Headquartered in the UK and quoted on the Alternative Investment Market of the London Stock Exchange, Alpha is a leading global consultancy to the financial services industry.
Alpha combines highly specialist, sector-focussed management consulting and technology expertise to support the client transformation lifecycle. It has over 1,000 consultants globally, operating from 17 client-facing offices spanning the UK, North America, Europe and APAC.
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