Alpha FX Sees Dip in H1 Profit Despite Solid Revenue Uptick

Alpha FX (LON: AFX), a UK-listed foreign exchange (FX) broker, has today filed its unaudited half-yearly interim report ending on June 30, 2002, with the London Stock Exchange. Though the brokerage reported a healthy increase in revenue, its profits declined year-on-year.
Finance Magnates earlier reported on the to £18 million in H1 2020, but the recent report detailed its half-yearly financials.

The underlying operating profit of the brokerage went down 8.9 percent year-on-year to £6.1 million, while the reported figures stood at £5.9 million, compared to £6.2 million in the first half of the previous year.
highlighted that the profits were calculated after the deduction of a temporary provision of £0.5 million for the debt of its Norwegian client.
The brokerage’s net profit for the 2020 first half stood at £3.7 million, a 26 percent year-on-year drop.
The underlying operating profit margin for the period stood at 34 percent, compared to 34 percent in the same half the previous year, and it had basic earnings per share at basic earnings per share of 8.9p.
Increased FX demand among institutions
The company pointed out that though the volumes ballooned in the first quarter of the year due to , the demand was corrected in the next quarter.
Meanwhile, the broker also reported on an increase in the number of its clients to 671 from 648.
Though the demand for the institutional client base of the broker increased in the period, it saw delayed and reduced FX activities among its corporate clients in both the United Kingdom and Canada.
“I am pleased to report on another period of progress delivered across all areas of the business,” Morgan Tillbrook, CEO of Alpha FX, said in a statement. “Whilst uncertainty remains, we have proven that we have the resilience and drive to succeed, and I look ahead to the rest of the year with confidence.”

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *