Alpha FX Group PLC (AIM:AFX) has reported an increase in its pre-tax profit for the first half of 2022 driven by a robust performance from its foreign exchange risk management division, leading it to raise its interim dividend.
The foreign exchange specialist said its revenue rose 35% to £46.1mln in the half-year to June 30, 2022, and its reported pre-tax profit grew by 16% to £17.8mln.
The AIM-listed company said its risk management and alternative banking solutions were performing well going into the second half of the year, and reiterated its outlook for the full year.
"The board intends to continue investing for growth in the second half, and expects to comfortably meet management expectations on revenue and profit for fiscal 2022," the company added in the results statement.
Alpha FX said first-half revenue from foreign exchange risk management increased by 31% to £32.3mln, with average revenue per client also increasing, while revenue for its Alternative Banking Solutions rose by 47% to £13.9mln.
The company added that deferred revenues related to its Alternative Banking Solutions which will be recognised over the next 12 months, almost doubled to £4.0mln as of June 30, 2022, compared to £2.2mln as of December 31, 2021.
It noted that the group was "profitable across both divisions", with underlying profit before tax of £18.0mln, a margin of 39%, and basic earnings per share up 21% to 33.3p.
The company said its board has proposed an interim dividend of 3.4p a share, up from 3.0p a year ago.
In the results statement, Morgan Tillbrook, chief executive officer of Alpha FX commented: "Although much of the world is moving into a challenging macro environment, I have never felt more confident about the potential of the business and our long-term growth prospects. Our highly decentralised structure has helped us to evolve our business model and strategy in a way that is delivering significant competitive advantage and momentum whilst giving us the clarity and confidence to increase the rate at which we are investing for long-term growth."
He concluded: "I am therefore confident we are in a strong position to sustain our company's growth and returns in the long term, whilst continuing to deliver strong performance in the short term."
In lunchtime trading, Alpha FX shares were trading 0.3% higher at 1,800.00p.