A currency management solutions company, Alpha FX Group announced on Tuesday that it has recommenced its trading relationship with a key Norwegian client.
As a result of the impact on the client from the start of COVID-19, the company entered into a settlement agreement with the customer in March 2020, under which weekly repayments for unpaid margin would be required until June 2022.
The client’s financial situation has improved since that time, and they have routinely met all 104 of their weekly payback commitments. As a result, the outstanding gross balance as of 1 April 2022 has been decreased to £2.9 million.
Alpha FX can resume its trading relationship as a result of the client’s solid financial status and the regularity with which they have paid and decreased their outstanding liabilities.
Furthermore, as a goodwill gesture in re-establishing a trade relationship, the group has agreed to extend the client’s remaining weekly repayments, which were originally scheduled to conclude at the end of June 2022, until the end of December 2022.
Alpha has no reservations about the client’s capacity to fulfil their responsibilities under the terms of the original agreement as the client’s financial condition is the best it has been since the beginning of the relationship.
“Having learnt from the experience of having too much concentration to one client in March 2020, we have instituted limits on the value of our exposure to any client regardless of the strength of their credit standing. Additionally, since that experience, we have added further enhancements to our risk processes and controls with the aim of further protecting against such an occurrence in the future,” said Morgan Tillbrook, Chief Executive Officer, Alpha FX.
“We also continue to provide investors and stakeholders with improved visibility and assurance, by publishing our top 20 client and currency exposures on our website, the largest of which currently represents 4.86%.”
Alpha FX Group’s shares gained 2.7% to 2,075p on commencing relationships with a key Norweigan client.
