TIDMAFX
RNS Number : 7927P
Alpha FX Group PLC
05 September 2017
5 September 2017
Alpha FX Group plc
("Alpha FX" or the "Group")
Interim Report
Alpha FX (AIM: AFX), the UK-based corporate foreign exchange
service provider, is pleased to announce its unaudited Interim
Report for the six months ended 30 June 2017.
Financial Highlights
-- Revenue up 90% to GBP6.3m (H1 2016: GBP3.3m)
-- Underlying operating profit* up 84% to GBP3.2m (H1 2016: GBP1.7m)
-- Reported operating profit up 40% to GBP2.4m (H1 2016: GBP1.7m)
-- Underlying operating profit margin for the period of 50% (H1
2016: 52%) and on a reported basis 38% (H1 2016: 52%)
-- Underlying basic earnings per share up 69% to 8.6p (H1 2016:
5.1p) and on a reported basis 6.3p (H1 2016: 5.1p)
-- Maiden interim dividend of 1.5 pence per share, payable on 13 October 2017
Operational highlights
-- Successful AIM listing on 7 April 2017, raising GBP13m of new
money to provide the Group with collateral for an expanded FX
forward book and increased volume and size of FX trades for new and
existing clients
-- Front office staff numbers increased from 21 to 29 in the period
-- 46 new clients added during the period, taking total to 269**
* Underlying excludes the impact of the one-off costs relating
to the IPO and non-cash share based payments.
** The Group exclude Training Accounts (those that have
generated less than GBP10,000 in revenue since being onboarded) in
order to provide a clearer picture of client retention for the
purposes of these figures.
Morgan Tillbrook, Chief Executive Officer of Alpha FX,
commented:
"Alpha has developed a highly differentiated service in an
established market through the strength of its vision, culture and
people. Our client base continues to grow and there is significant
scope to grow our presence in the UK corporate FX market. As
Alpha's reputation grows ever stronger and the proceeds from the
IPO are put to use, the Group looks forward to the significant
opportunity that lies ahead and delivering on the objectives we set
out at IPO."
Outlook
We are encouraged by our performance in the first half of the
year and trading for the second half has begun well. The Board is
confident that the results for the full year will be in line with
market expectations.
Enquiries:
Alpha FX Group plc via Alma PR
Morgan Tillbrook, Founder
and CEO
Tim Kidd, CFO
Liberum Capital Limited Tel: +44 (0) 20 3100
(Nominated Adviser and 2000
Sole Broker)
Neil Patel
Richard Bootle
Dominik Götzenberger
Tel: 07780 901979
Alma PR (Financial Public
Relations)
Josh Royston
Rebecca Sanders-Hewett
Helena Bogle
Market Abuse Regulation
This announcement is released by Alpha FX Group plc and contains
inside information for the purposes of the Market Abuse Regulation
(EU) 596/2014 ("MAR") and is disclosed in accordance with the
Company's obligations under Article 17 of MAR. The person who
arranged for the release of this announcement on behalf of Alpha FX
Group plc was Tim Kidd, Chief Financial Officer.
Notes to Editors
Alpha is a UK-based corporate foreign exchange service provider
focused on managing exchange rate risk for UK corporates that trade
internationally. The Group's primary client base consists of medium
sized corporates that have a requirement to convert currency for a
commercial purpose, such as buying or selling goods and services
overseas, repatriating profits, or expatriating payroll. Since it
was incorporated in 2010, Alpha has been able to build and retain a
high-quality client base that includes brands such as ASOS, Holland
& Barrett and Global Data.
Chief Executive's Report
I am pleased to report on a strong set of half year results,
which include 12 weeks as a public listed company. The successful
initial public offering on AIM in April 2017, which attracted
strong support from high quality institutional investors, was a key
milestone in the Group's evolution and one that I believe will
enable Alpha to achieve its ambitious growth plans whilst retaining
the unique culture which is integral to our success.
Revenue for the first half was GBP6.3 million, representing
growth of 90% on the prior period, with underlying operating profit
of GBP3.2 million representing 84% growth on the prior period. The
performance has been driven by both an increase in new clients
trading their foreign exchange through Alpha for the first time and
an increasing volume of trades with existing clients. Additionally,
the capital constraints prior to the IPO that restricted the Group
from taking advantage of all of its available opportunities have
now been relieved.
Market developments
The UK corporate FX market continues to be dominated by large
multinational banks that hold approximately 85% market share, with
the remaining balance comprising independent FX specialists. Alpha
still makes up less than 1% of the UK corporate FX market and
therefore the Group's potential for growth remains significant.
In addition, the Group will continue to extend its brand and
services overseas in order to support our growing acquisition of
overseas clients.
Regulation
In January, Alpha submitted an application to the Financial
Conduct Authority (FCA) for its wholly owned trading subsidiary
Alpha FX Limited to be regulated as a BIPRU investment firm both in
anticipation of later regulatory changes, possibly driven by MiFID
II, and also to enable it to expand the range of products it
provides. Alpha FX Limited obtained authorisation on 1 August,
enabling the Group to offer currency Swaps and non-leveraged FX
Options to its clients, in addition to its existing products and
services. The Group has self-elected not to provide FX Options to
Retail Clients, restricting its FX Option service to Professional
Clients and Eligible Counterparties only (as defined in the Conduct
of Business Sourcebook).
These products will continue to adhere to Alpha's philosophy of
acting in its clients' best interests and always with the
overriding objective of helping them to manage exchange rate
risk.
Benefits of the IPO
The Group is already experiencing several benefits as a result
of the AIM listing in April. The proceeds from the primary
fundraise has provided the Group with greater collateral. This is
enabling it to expand the size of its FX forward book, allowing it
to both significantly increase the number of forward contracts
entered into with clients, as well as enter into larger FX trades
and pursue new, larger opportunities in the UK corporate FX market
which it could not pursue prior to the IPO. It is pleasing to note
that we are already seeing evidence of this, both in terms of
signing up new clients (including FTSE 250 clients), larger volume
with new and existing clients and an enhanced pipeline of potential
new business. Our Front Office team has also found that the
enhanced profile and credibility of being a publicly listed
business is helping to increase traction with potential new
customers, as well as larger clients who may have previously
discounted Alpha on account of its private company status and
balance sheet size.
The strong client retention rate that the Group achieved for the
financial year ended 31 December 2016 (97%) has continued during
the half year with 46 new clients added, bringing the total number
of corporates who trade through Alpha to 269. The Group has a track
record of gaining a larger share of new and existing clients'
annual currency purchasing volume as the relationship progresses,
once the client experiences the benefits of Alpha's approach, which
bodes well for generating further revenue growth in the years to
come. Alpha's co-founder, Jonathan Currie, has moved into a new
role which will see him focus predominantly on maintaining the
Group's high retention levels and enhancing customer
experience.
The IPO has provided key employees with the opportunity to
acquire equity. This has had a pronounced cultural benefit across
the business, with employees taking on an enhanced sense of
ownership and the Group is naturally benefitting from the mentality
and motivation that comes with this.
Following the IPO, we have also found that the Group has become
a more attractive prospect to both existing and potential liquidity
providers in the marketplace.
People
The Group's success is based on its collegiate culture, and
every new hire is carefully selected to ensure they fit with the
Alpha ethos. The IPO has aided and we believe will continue to aid,
the recruitment, retention and incentivisation of the Senior
Management team and high calibre employees at all levels of the
Group. Front Office staff recruited during 2016 have continued to
develop in line with expectations and we expect their contributions
to continue increasing incrementally as they mature. During the
first half of the year, overall staff numbers have increased from
30 to 44, with eight new staff added in Front Office functions and
six in the Back Office. Notably, two of the increases in Back
Office headcount were due to consultants becoming full-time
employees. Additionally, as new Portfolio Managers have become more
experienced, we have been able to draw on existing employees in
order to double the size of our team of Strategists and Support
Dealers, providing Portfolio Managers and their clients with even
greater levels of support and service.
In conjunction with the IPO, we welcomed Clive Kahn to the Board
as Non-Executive Chairman and Lisa Gordon, as Non-Executive
Director, both of whom made valuable contributions throughout the
IPO process and bring a wealth of experience in foreign exchange
and public company oversight. Their independent role has been much
appreciated and their continued counsel will be essential as the
Group continues to execute on its growth strategy.
Furthermore, the opening of the London office has enabled Alpha
to target a greater pool of skills, in particular, individuals that
are bilingual and fluent in foreign languages which will prove
vital as we continue to explore the possibilities of entering new
territories.
Following consultation with our employees, we have also
announced today an extension to the vesting periods from three to
five years for shares allotted to full-time employees under the
Growth Share Scheme implemented at the IPO. It is particularly
satisfying to note that employees share the same vision and longer
term outlook for the business.
Technology
Other new hires include additional support for the IT
Development and Back Office teams. The sophistication of our client
facing technology is a key area of differentiation for Alpha,
helping us to identify, win and retain bigger clients and we will
continue to invest in this field. In addition, significant
developments have been made in the technologies used by our Front
and Back Office teams, which will increase our efficiency and
effectiveness, particularly in areas of client insight and
profiling, as well as resource management.
Financial Review
Revenue in the first half increased by 90% to GBP6.3m (H1 2016:
GBP3.3m), whilst revenue growth against H2 2016 was 22%. In 2016,
H2 benefitted from the outcome of the Brexit referendum on 23 June
2016, whilst 2016 H1 was impacted as a number of clients were
reluctant to hedge prior to the referendum.
Underlying operating profit increased by 84% to GBP3.2m (H1
2016: GBP1.7m). The Group delivered an underlying operating profit
margin of 50% (H1 2016: 52%), despite continued investment in
headcount.
The average commission (revenue as a % of gross value of
currency transactions sold) increased in the six months to 30 June
2017 to 0.61% from 0.36% in the six months to 30 June 2016 due to a
higher proportion of forward trades (which attract a higher
commission rate), larger trades and changes in the mix of
currencies traded in the first half. The Group expects the average
commission rate to fluctuate from period to period due to the
different variables impacting it, primarily tenure, trade size,
collateral size and currency pair. There were no structural changes
in forward commission rates in the first half of the year compared
to the prior period.
Cash flow
The Group's cash position can fluctuate significantly from
period to period due to the impact of changes in the collateral
received from clients, early settlements or the unrealised mark to
market profit or loss from client swaps, resulting in an increase
or decrease in cash with a corresponding change in other payables
and trade receivables. Therefore, in addition to the statutory cash
flow, the Group presents an adjusted net cash summary below which
excludes the above items. In the six months to 30 June 2017 net
cash on the non-statutory basis increased by GBP12.6m to GBP14.4m,
largely due to the net proceeds of the IPO and the profitable
trading in the period.
30 June 31 Dec
2017 2016
GBP'000 GBP'000
-------------------------------------- -------- --------
Net cash and cash equivalents 11,778 7,581
Variation margin paid to
banking counterparties 6,638 4,342
-------------------------------------- -------- --------
18,416 11,923
Margin received from clients
& client held funds* (5,246) (9,772)
Net MTM timing loss/(profit)
from client drawdowns and
extensions within trade receivables 1,237 (350)
Adjusted net cash** 14,407 1,801
* Represents 'other payables' within 'trade and other payables'
note 8
** Excluding collateral received from clients, early settlements
and the unrealised mark to market profit or loss from client
swaps
The table below presents the operating cash conversion on a
similar basis, which excludes collateral received from clients,
early settlements and the unrealised mark to market profit or loss
from client swaps. Cash conversion for the six month period to 30
June 2017 was 65% in comparison to 60% for the financial year
2016.
6 months 6 months Year
to to ended
30 June 30 June 31 Dec
2017 2016 2016
GBP'000 GBP'000 GBP'000
----------------------------- --------- --------- --------
Underlying operating
profit 3,174 1,729 4,358
Depreciation & amortisation 42 33 57
Bad debt provision 100 - -
Increase in debtors** (1,149) (596) (2,145)
(Decrease)/increase
in creditors** (53) 242 427
Less capital expenditure (62) (45) (90)
Cash from operations
before tax, and after
capex** 2,052 1,363 2,607
----------------------------- --------- --------- --------
Conversion 65% 79% 60%
** Excluding collateral received from clients, early settlements
and the unrealised mark to market profit or loss from client
swaps
Dividend
The Board intends to target a dividend of approximately 30% of
the Group's underlying profits after tax in each financial year. In
line with its stated dividend policy, the Board is pleased to
declare a maiden interim dividend of 1.5 pence per share. The
interim dividend will be payable on 13 October 2017 to shareholders
on the register at 15 September 2017. The ex-dividend date is 14
September 2017.
Outlook
We are encouraged by our performance in the first half of the
year and trading for the second half has begun well. The Board is
confident that the results for the full year will be in line with
market expectations.
Consolidated statement of comprehensive income
Unaudited Unaudited Audited
Six months Six months Year ended
to to 30 June 31 Dec
30 June 2016 2016
2017
Note GBP GBP GBP
Gross value
of currency
transactions
sold 1,029,406,162 907,055,192 1,818,167,316
Gross value
of currency
transactions
purchased (1,023,115,851) (903,747,967) (1,809,691,892)
---------------------- ----- ---------------- -------------- ----------------
Revenue 6,290,311 3,307,225 8,475,424
Operating expenses (3,116,569) (1,578,250) (4,117,175)
Underlying operating
profit 3,173,742 1,728,975 4,358,249
Cost associated (612,873) - -
with the IPO
Share based (147,000) - -
payments
Operating profit 2,413,869 1,728,975 4,358,249
Finance costs (32,626) (6,350) (45,164)
---------------------- ----- ---------------- -------------- ----------------
Profit before
taxation 2,381,243 1,722,625 4,313,085
Taxation (528,452) (344,437) (863,992)
---------------------- ----- ---------------- -------------- ----------------
Profit and total
comprehensive
income for the
period 1,852,791 1,378,188 3,449,093
---------------------- -----
Profit for the
year attributable
to:
Equity owners
of the parent 1,852,791 1,070,373 2,940,086
Non-controlling
interests - 307,815 509,007
---------------------- ----- ---------------- -------------- ----------------
1,852,791 1,378,188 3,449,093
Earnings per
share attributable
to equity owners
of the parent
(basic and diluted) 4 6.3p 5.1p 13.4p
Consolidated statement of financial position
Unaudited
Unaudited Audited
30 June 30 June 31 Dec
2017 2016 2016
Note GBP GBP GBP
Non-current assets
Intangible assets 65,453 28,500 45,521
Property, plant
and equipment 168,981 165,246 169,291
--------------------------- ----- ------------ ------------ ------------
Total non-current
assets 234,434 193,746 214,812
--------------------------- ----- ------------ ------------ ------------
Current assets
Trade and other
receivables 6 16,294,751 15,050,937 15,792,474
Cash and cash equivalents 7 11,777,551 11,093,309 7,963,625
Other cash balances 7 741,590 826,544 1,921,264
--------------------------- ----- ------------ ------------ ------------
Total current assets 28,813,892 26,970,790 25,677,363
--------------------------- ----- ------------ ------------ ------------
Total assets 29,048,326 27,164,536 25,892,175
--------------------------- ----- ------------ ------------ ------------
Equity
Share capital 9 65,524 140 1,118
Share premium account 12,237,951 - -
Capital redemption
reserve 3,701 - 60
Merger reserve 666,529 - 666,529
Retained earnings 6,696,060 3,118,701 4,748,978
--------------------------- ----- ------------ ------------ ------------
Total equity attributable
to equity holders
of the Company 19,669,765 3,118,841 5,416,685
--------------------------- ----- ------------ ------------ ------------
Non-controlling - 476,176 -
interests
--------------------------- ----- ------------ ------------ ------------
Total equity 19,669,765 3,595,017 5,416,685
--------------------------- ----- ------------ ------------ ------------
Current liabilities
Loans and borrowings - 599,000 1,381,282
Trade and other
payables 8 8,810,769 21,142,372 17,826,893
Current tax liability 524,198 946,575 865,327
--------------------------- ----- ------------ ------------ ------------
Total current liabilities 9,334,967 22,687,947 20,073,502
--------------------------- ----- ------------ ------------ ------------
Non-current liabilities
Loans and borrowings - 847,500 370,500
Deferred tax liability 43,594 34,072 31,488
--------------------------- ----- ------------ ------------ ------------
Total non-current
liabilities 43,594 881,572 401,988
--------------------------- ----- ------------ ------------ ------------
Total equity and
liabilities 29,048,326 27,164,536 25,892,175
--------------------------- ----- ------------ ------------ ------------
Consolidated cash flow
statement Unaudited Unaudited Audited
6 months 6 months Year
to to 30 ended
30 June June 2016 31 Dec
2017 2016
Notes GBP GBP GBP
Cash flows from operating
activities
Profit before taxation 2,381,243 1,722,625 4,313,085
Finance costs 32,626 6,350 45,164
Amortisation of intangible
assets 10,172 - 1,979
Depreciation of property,
plant and equipment 32,310 32,741 54,724
Share based payment 147,000 - -
expense
Decrease in other receivables 32,022 461,284 484,105
(Decrease)/increase
in other payables (4,581,470) 4,981,066 6,053,170
Increase in derivative
financial assets (534,299) (7,605,568) (8,510,926)
(Decrease)/increase
in derivative financial
liabilities (4,434,654) 7,829,953 3,649,156
Decrease/(increase)
in other cash balances 1,179,674 (208,115) (1,302,835)
------------------------------- ------ ------------ ------------- ------------
Cash (outflows)/inflows
from operating activities (5,735,376) 7,220,336 4,787,622
Tax paid (857,475) (305,480) (908,868)
------------------------------- ------ ------------ ------------- ------------
Net cash (outflows)/inflows
from operating activities (6,592,851) 6,914,856 3,878,754
------------------------------- ------ ------------ ------------- ------------
Cash flows from investing
activities
Payments to acquire
property, plant and
equipment (32,000) (16,934) (42,961)
Internally developed
intangible assets (30,104) (28,500) (47,500)
Purchase of non-controlling
interest for cash - (1,000,000) (1,000,000)
------------------------------- ------ ------------ ------------- ------------
Net cash outflows from
investing activities (62,104) (1,045,434) (1,090,461)
------------------------------- ------
Cash flows from financing
activities
Proceeds from borrowings 400,000 - 475,925
Repayment of borrowings (1,769,425) (24,000) (100,000)
Dividends paid to equity
owners of the parent
company - (97,483) (510,000)
Amounts repaid by Directors - 105,875 242,642
Amounts lent to Directors - - (40,173)
Issue of ordinary shares
by parent company 13,000,000 - 900
Share issue costs (748,784) - -
Issue of ordinary shares 2,073 - -
by subsidiary
Repurchase of preference
shares in subsidiary - - (477,000)
Interest paid (32,626) (6,350) (45,164)
------------------------------- ------ ------------ -------------
Net cash outflows from
financing activities 10,851,238 (21,958) (452,870)
------------------------------- ------ ------------ ------------- ------------
Increase in net cash
and cash equivalents
in the period 4,196,283 5,847,464 2,335,423
Net cash and cash equivalents
at beginning of period 7,581,268 5,245,845 5,245,845
------------------------------- ------ ------------ ------------- ------------
Net cash and cash equivalents
at end of period 7 11,777,551 11,093,309 7,581,268
------------------------------- ------ ------------ ------------- ------------
Consolidated statement of changes in equity
Attributable to the owners of
the parent
Share Share Capital Merger Retained Total Total
capital premium redemption reserve Earnings Non-controlling
account reserve interests
GBP GBP GBP GBP GBP GBP GBP
Balance at
1 January 2016 140 - - - 1,916,753 1,916,893 991,438 2,908,331
----------------- ------------ ----------- ----------- -------- ---------- ----------- ---------------- ------------
Profit and
total
comprehensive
income for
the period - - - - 1,070,373 1,070,373 307,815 1,378,188
Transactions
with owners
Shares
repurchased
from
non-controlling
interest - - - - 260,759 260,759 (1,260,759) (1,000,000)
Cancellation
of shares in
subsidiary - - - - (31,701) (31,701) 31,701 -
Dividends paid - - - - (97,483) (97,483) - (97,483)
Waiver by
non-controlling
interests of
dividend
liabilities - - - - - - 405,981 405,981
Balance at
30 June 2016 140 - - - 3,118,701 3,118,841 476,176 3,595,017
----------------- ------------ ----------- ----------- -------- ---------- ----------- ---------------- ------------
Profit and
total
comprehensive
income for
the period - - - - 1,869,713 1,869,713 201,192 2,070,905
Transactions
with owners
Shares issued 900 - - - - 900 - 900)
Cancellation
of shares in
parent company (60) - 60 - - - - -
Settlement
of
non-controlling
interest via
share for share
exchange 138 - - 666,529 173,081 839,748 (839,610) 138
Dividends paid - - - - (412,517) (412,517) - (412,517)
Waiver by
non-controlling
interests of
dividend
liabilities - - - - - - 162,242) 162,242
Balance at
31 Dec 2016 1,118 - 60 666,529 4,748,978 5,416,685 - 5,416,685
----------------- ------------ ----------- ----------- -------- ---------- ----------- ---------------- ------------
Profit and
total
comprehensive
income for
the financial
period - - - - 1,852,791 1,852,791 - 1,852,791
Transactions
with owners
Bonus shares
issued 54,782 - - - (54,782) - - -
Cancellation
of shares in
parent company (3,641) - 3,641 - - - - -
Shares issued
on listing 13,265 12,986,735 - - - 13,000,000 - 13,000,000
Costs of issue
of equity
shares - (748,784) - - - (748,784) - (748,784)
Share based
payments - - - - 149,073 149,073 - 149,073
Balance at
30 June 2017 65,524 12,237,951 3,701 666,529 6,696,060 19,669,765 - 19,669,765
----------------- ------------ ----------- ----------- -------- ---------- ----------- ---------------- ------------
Notes to the consolidated financial information
1. Corporate information
The Company, Alpha FX Group plc, is a public limited company
having listed its shares on AIM, a market operated by The London
Stock Exchange, on 7 April 2017. The Company is incorporated and
domiciled in the UK (registered number 07262416). The consolidated
financial statements incorporate the results of the Company and its
subsidiary undertaking Alpha FX Limited.
2. Basis of preparation
The basis of preparation of this financial information is
consistent with the basis that will be adopted for the full year
accounts which will be prepared in accordance with IFRS as adopted
by the European Union.
While the financial figures included in this interim report have
been computed in accordance with IFRS applicable to interim
periods, this interim report does not contain sufficient
information to constitute an interim financial report as defined in
IAS 34.
This interim financial information has not been audited and the
financial information contained in this report does not constitute
statutory accounts within the meaning of Section 434 of the
Companies Act 2006. The year to 31 December 2016 has been extracted
from the audited financial statements for that year.
The Group's financial statements for the year ended 31 December
2016 have been reported on by auditors, BDO LLP, and have been
delivered to the Registrar of Companies. The auditors' report on
those financial statements was unqualified and did not contain
statements under Section 498(2) or Section 498(3) of the Companies
Act 2006.
Accounting policies
The accounting policies adopted in these interim financial
statements are identical to the those adopted in the Group's most
recent annual financial statements for the year ended 31 December
2016 except as described below.
Share based payments
The Group issues equity-settled share based payments to certain
senior executives of the Group. Equity-settled share based schemes
are measured at fair value, excluding the effect of non
market-based vesting conditions, at the date of grant using an
appropriate option pricing model. The probability of meeting
non-market vesting conditions which includes revenue targets, is
used to estimate the number of share options which are likely to
vest.
The fair value of the shares or share options is recognised over
the vesting period to reflect the value of the employee services
received. The charge relating to grants to employees of the Company
is recognised as an expense in the income statement.
3. Segmental reporting
The revenue for the Group is generated through the provision of
commercial and wholesale foreign exchange services and this is the
sole operating segment of the group. All revenue is derived from
within the UK.
4. Earnings per share
Basic earnings per share is calculated by dividing the profit
for the period attributable to equity holders of the parent, by the
weighted average number of ordinary shares during the period.
Diluted earnings per share additionally includes in the
calculation, the weighted average number of ordinary shares that
would be issued on conversion of any dilutive potential ordinary
shares.
The Group additionally discloses an underlying earnings per
share calculation that excludes the impact of the one-off costs
relating to the IPO and their tax effect and share based payments,
which better enables comparison of financial performance in the
current period with comparative periods.
Unaudited Unaudited
six six
months months Year ended
ended ended
30 June 30 June 31 Dec
2017 2016 2016
-------------------------- ---------- ---------- -----------
Underlying - basic 8.6p 5.1p 13.4p
Underlying - diluted 8.6p 5.1p 13.4p
Basic earnings per share 6.3p 5.1p 13.4p
Diluted earnings per
share 6.3p 5.1p 13.4p
The calculation of basic and diluted earnings per share is based
on the following number of shares:
Unaudited Unaudited
six six
months months Year ended
ended ended
30 June 30 June 31 Dec
2017 2016 2016
No. No. No.
-------------------------- ----------- ----------- -----------
Basic weighted average
shares 29,244,108 21,000,000 21,969,750
Contingently issuable
shares 28,223 - -
Diluted weigthed average
shares 29,272,331 21,000,000 21,969,750
The earnings used in the calculation of basic, diluted and
underlying earnings per share are set out below:
Unaudited Unaudited
six six
months months Year ended
ended ended
30 June 30 June 31 Dec
2017 2016 2016
GBP GBP GBP
--------------------------- ---------- ---------- -----------
Profit after tax for
the period 1,852,791 1,378,188 3,449,093
Non-controlling interests - (307,815) (509,007)
--------------------------- ---------- ---------- -----------
Earnings - basic and
diluted 1,852,791 1,070,373 2,940,086
Costs associated with 612,873 - -
the IPO
Tax effect (88,718) - -
Share based payments 147,000 - -
Earnings - underlying 2,523,946 1,070,373 2,940,086
5. Dividends
The Board has recommended the payment of an interim dividend to
shareholders in respect of the year ended 31 December 2017 of 1.5p
per share (total GBP491,430). The interim dividend will be payable
on 13 October 2017.
6. Trade and other receivables
Trade receivables represent the fair value of derivative
financial assets arising as a result of matched principal
transactions.
Unaudited Unaudited
30 June 30 June 31 Dec
2017 2016 2016
GBP GBP GBP
------------------------------- ----------- ----------- -----------
Foreign currency forward
contracts with customers 16,015,348 13,742,739 15,549,510
Foreign currency forward
contracts with banking
counterparties 192,568 1,025,519 124,107
Trade receivables (derivative
financial asset) 16,207,916 14,768,258 15,673,617
Other receivables 25,316 119,573 1,533
Directors' current account - 141,000 -
Prepayments 61,519 22,106 117,324
------------------------------- ----------- ----------- -----------
16,294,751 15,050,937 15,792,474
7. Cash
Cash and cash equivalents comprise cash balances and deposits
held at call with banks.
Other cash balances comprise cash held as collateral with
banking counterparties for which the Group does not have immediate
access.
Cash balances included within derivative financial assets relate
to the net mark to market of derivative contracts with liquidity
providers.
Unaudited Unaudited
30 June 30 June 31 Dec
2017 2016 2016
GBP GBP GBP
-------------------------------- ----------- ----------- -----------
Cash and cash equivalents 11,777,551 11,093,309 7,963,625
Bank overdraft - - (382,357)
-------------------------------- ----------- ----------- -----------
Net cash and cash equivalents 11,777,551 11,093,309 7,581,268
Variation margin called
by counterparties* 6,638,503 2,789,103 4,341,820
Other cash balances 741,590 826,544 1,921,264
-------------------------------- ----------- ----------- -----------
Total cash 19,157,644 14,708,956 13,844,352
*Included with trade receivables and trade payables.
8. Trade and other payables
Trade payables represent the fair value of derivative financial
liabilities arising as a result of matched principal
transactions.
Other payables consist of margin received from clients and
client held funds.
Unaudited Unaudited
30 June 30 June 31 Dec
2017 2016 2016
GBP GBP GBP
---------------------------- ---------- ----------- -----------
Foreign currency forward
contracts with customers 3,019,424 11,522,550 7,463,047
Other foreign exchange
forward contracts 31,220 143,546 22,250
Trade payables (derivative
financial liability) 3,050,644 11,666,096 7,485,297
Other payables 5,245,625 8,974,124 9,771,807
Directors' current account - 44,406 -
Dividends payable to
non-controlling interests - 162,393 -
Other taxation and social
security 174,780 166,388 216,306
Accruals and deferred
income 339,720 128,965 353,483
---------------------------- ---------- ----------- -----------
8,810,769 21,142,372 17,826,893
9. Share capital
The following movements of share capital occurred in the 6
months to 30 June 2017.
A B C D Ordinary Deferred
Number of shares shares shares shares shares shares
shares Total
---------------- ------------- ------------ ---------- ------------ ------------ -------------- --------------
At 1 January
2017
- shares
of GBP1
each 860 118 31 109 - - 1,118
Bonus issue 42,140 5,782 1,519 5,341 - - 54,782
43,000 5,900 1,550 5,450 - - 55,900
---------------- ------------- ------------ ---------- ------------ ------------ -------------- --------------
Conversion
to GBP0.002
each 21,500,000 2,950,000 775,000 2,725,000 - - 27,950,000
Re-designation (21,500,000) (2,950,000) (775,000) (2,725,000) 26,129,326 1,820,674 -
Cancellation
of shares - - - - - (1,820,674) (1,820,674)
Issue of
new shares
on IPO - - - - 6,632,653 - 6,632,653
At 30 June
2017 - - - - 32,761,979 - 32,761,979
---------------- ------------- ------------ ---------- ------------ ------------ -------------- --------------
At 30 June
2017 Nominal - - - GBP65,524 - GBP65,524
value
---------------- ------------- ------------ ---------- ------------ ------------ -------------- --------------
On 24 March 2017, a bonus issues of shares was made for all A,
B, C and D shares of 49 additional shares for each share held. On
the same date, all shares were converted from ordinary shares of
GBP1 each to ordinary shares of GBP0.002 each.
On 31 March 2017, all the A and B shares were converted into
ordinary shares, the C shares were converted into 371,851 ordinary
shares and 403,149 deferred shares and the D shares were converted
into 1,307,475 ordinary shares and 1,417,525 deferred shares. On
the same date the 1,820,674 deferred shares were cancelled.
On 7 April 2017, the Company issued 6,632,653 new shares upon
admission to the London Stock Exchange.
10. Subsequent events
No significant events have occurred between the reporting date
and the date of approval.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR OKQDKCBKDPCK
(END) Dow Jones Newswires
September 05, 2017 02:01 ET (06:01 GMT)
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