Shares in foreign exchange risk management and alternative banking solutions company Alpha FX (AFX:AIM) gained 6% to £15.90 after the company said trading in the first five months of the year had been positive across the whole business.
The company said the established corporate division that supports institutions across the UK, Europe and Canada who trade currencies for commercial reasons, experienced ‘strong growth’ and is seen as a talent incubator for future leaders to launch into new markets.
The smaller but fast-growing Alpha Solutions Platform which provides a suite of alternative banking solutions covering payments, collections and accounts in the UK, Canada and Holland was said to have achieved ‘excellent’ year-on-year growth.
INCREASED EXPECTATIONS
Strong trading in the first few months has given the board confidence that the company is now on track to exceed current market expectations for the full year ended 31 December 2021.
Consensus analysts’ expectations see full year revenues rising 18.5% to £54.77 million and pre-tax profit growing 17.5% to £21.75 million.
We would expect upgrades to current market expectations over the coming weeks.
The company believes it has barely scratched the surface of the total addressable market for foreign exchange risk management services.
Analysts at Liberum increased their price target to £18 today and believe Alpha can double revenues to more than £100 million in the longer term.
