Alpha Financial Markets Consulting PLC (AIM:AFM) said the global consulting market remains challenging but utilisation rates are continuing to improve from earlier in the year, with full-year results anticipated to be in line with current market forecasts.
First-half results from the specialist consultancy services to the asset management, wealth management and insurance industries showed a 7.5% increase in revenue to £115.6 million, while net fee income grew 8.5%, mostly from organic growth.
Consultant headcount increased 14.1% from a year ago to 1,051, including the hiring of 38 consultants in the last six months, while the number of clients increased to 971 from 787 a year ago despite a longer sales cycle.
However, Alpha experienced a dip in underlying profits (EBITDA) to £20.1 million from £22.5 million, reflecting lower consultant utilisation over the summer and investments in team expansion, while profit before tax decreased to £10.8 million from £14.2 million, impacted by higher acquisition-related costs.
"The group's first half trading has been resilient," said chief executive Luc Baqué in the statement.
"As communicated in June and outlined in our pre-close trading update, we have seen a lengthening sales cycle and increased competition as a result of overcapacity in the global consulting market. The current market remains challenging but is progressively rebalancing."
Utilisation rates ticked up from summer lows in September and further in October, closer to target levels, with Alpha expecting this improving trend to continue through the second half, with good near-term visibility and a strong pipeline reported.
The company maintained its interim dividend at 3.70p per share as the balance sheet remains solid, with a net cash balance of £16.1 million and a largely undrawn £50 million credit facility.
Looking forward, Baqué said: "With our unique value proposition and unrivalled consulting team, we continue to see robust client demand and enter the second half of the year with a strong pipeline.
"We remain well positioned for future growth in the medium to long term, in line with our ambition to double the business again by 2028."