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Source: wutzkohphoto, Shutterstock
Summary
- Alpha FX Group PLC had reported a revenue of £46.2 million during FY20.
- AFX had a robust free cash flow of £52.0 million during FY20.
- AFX had shown an increase of 16.0% in client numbers from 648 during FY19 to 754 during FY20.
- AFX will pay the final FY20 dividend of 8.0 pence per share on 14 May 2021.
Alpha FX Group PLC (LON:AFX) is the LSE listed financial stock. AFX’s shares have generated a return of approximately 60.92% in the last 12 months. It is listed on the FTSE AIM 100 Index. AFX was incorporated in 2010.
Business Model
Alpha FX Group PLC is the FTSE AIM 100 Index listed company, engaged in providing alternative banking solutions and FX (“foreign exchange”) risk management to international corporates and institutions. Moreover, the Company provide banking solutions to over 600 organizations in around 30 countries. The Company had two reportable business segments – FX Risk Management and Alternative Banking. AFX is backed by several reputed investors.
(Source: Company website)
Financial Highlights (for twelve months ended 31 December 2020, as of 17 March 2021)
(Source: Company result)
- AFX had shown a significant increase in revenue from £35.4 million during FY19 to £46.2 million during FY20.
- On the profitability front, AFX had reported a 27.0% improvement in the profit before tax to £17.1 million during FY20.
- The basic earnings per share grew by 15% to 31.7 pence per share during FY20.
- Meanwhile, AFX will pay a final dividend of 8.0 pence per share on 14 May 2021, driven by strong FY20 results.
- Furthermore, the Company is well-positioned, illustrated by solid cash position and debt-free position with £91.0 million of net assets and £52.0 million of free cash flow during FY20. The net cash & cash equivalents were £83.0 million as of 31 December 2020.
- Moreover, AFX had shown an increase of 16% in client numbers from 648 during FY19 to 754 during FY20.
- The average employee headcount rose by 32% from 102 to 135 during the period.
- The average revenue per client also grew by 12% during the period.
- Alpha Platform Solutions had achieved profitability during the period with a revenue surge of over 600% during FY20.
- The Canadian office launched during 2018 had also achieved profitability for FY20.
Segmental review
FX Risk Management- The FX risk management segment aid corporate institutions to trade currency for commercial purposes. The revenue for this segment went up by around 18% to £40.3 million during FY20. However, the Company witnessed significantly lesser revenue growth during the first half of 2020 as investors preferred delaying their trading activities.
Alternative Banking– The alternative banking segment serves the clients primarily through Alpha Platform Solutions, which was earlier named Alpha Payment Solutions. The revenue across this business segment had shown an exceptional growth of nearly 417% to £6.0 million during FY20. Moreover, Adam was appointed as the Group Managing Director of this segment during April 2020.
Share Price Performance Analysis of Alpha FX Group PLC
(Source: EODHD/Others, chart created by Kalkine group)
AFX’s shares were trading at GBX 1,400.00 and were up by close to 0.36% against the previous closing price as of 17 March 2021 (before the market close at 11:25 AM GMT). AFX's 52-week Low and High were GBX 465.00 and GBX 1,565.00, respectively. Alpha FX Group PLC had a market capitalization of around £559.72 million.
Business Outlook
The Company had managed to produce resilient business performance during the year despite challenging business conditions. Moreover, AFX had managed to capitalize on market opportunities illustrated by the success achieved through its investments. However, the Company had highlighted its concern regarding the Covid-19 pandemic. Nonetheless, AFX had kickstarted 2021 on a good note. Overall, AFX is well-positioned to drive long term growth and achieve operational excellence.
