Alpha FX Group to payout 8p dividend
Alpha FX Group (AIM:AFX), a provider of FX risk management and alternative banking solutions, confirmed on Wednesday that the company’s revenue rose by 31% to £46.2m in 2020.
This is up from £35.4m in 2019 as the company said its market position “remains strong” under testing conditions.
Alpha’s underlying profit before tax also jumped by 20% to £17.5m, up from £14.6m in 2019.
The AIM-listed company grew its client numbers for the year ending 31 December 2020 by 16% to 754, while average revenue per client increased by 12%.
Alpha outlined its “solid cash position” and confirmed the company is debt free with £91m of net assets and £52m in free cash.
The company confirmed a final dividend of 8p per share which is set to be paid in May 2021. Having cancelled dividend payments for 2020, this figure exceeds the company’s 2018 and 2017 payouts, which were 6.5p and 4.9p respectively.
A year ago, after one client was unable to lodge its collateral leaving a £30.2m black hole, Alpha confirmed it was cancelling its dividend payment.
The company confirmed in a statement on Wednesday that while the pandemic remains a cause for concern, Alpha FX Group remains on track to deliver another year of strong growth, having already made an excellent start to the year.
Morgan Tillbrook, chief executive of Alpha FX, commented: “For many companies across the world, 2020 has represented their greatest challenge to date, and Alpha was no different. However, what I witnessed last year was a team that grew more ambitious, more determined and more connected with every challenge that was thrown at them.”
“The result that the market will see today was another year of consecutive growth across all divisions, and I am naturally delighted with this. However, I believe the long-term benefits for our team and culture, having overcome this experience together, will prove far more valuable still.”
