Institutional focused UK brokerage company ACM Group, also known as Alpha, submitted to the UK Companies House its report for the full year ending on the 30th of September 2016. The company marked an increase in revenues to £8.8 million, which is higher by 16 percent when compared to the same period of the previous year.
The change comes as the firm announced a major transition of the company’s focus and decided to stop offering services to retail clients.
The firm posted a loss of about £2.1 million after deciding to write off £2.5 million of bad debt. ACM Group’s management deemed the debt as “unlikely to be collected” and took appropriate action. The item has been on the company’s balance sheet prior to the acquisition by the new owners and before Alpha decided to exclusively move into the institutional side of the FX business.
Looking at key metrics, Alpha’s cost of sales declined by 43 percent to £2.9 million from £5.1 million in 2015. The company made significant investments into its technology infrastructure, as well as new staff, driving the firm’s total costs to £6 million in 2016. The figure is about 150 percent higher when compared to the previous year.
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Last year the company also moved offices in London, set up a new office in the US and completely transformed its technology to accommodate Alpha’s proprietary solution Alpha Pro and MT4.
Institutional Business Commitment and Growth
Alpha shared with Finance Magnates the company’s results for the first quarter of fiscal 2016-17 that shows a substantially different dynamic for the firm. For the three months ending December 31st 2016 the firm reported total turnover of £5.7 million with net profits totaling about £1.15 million.
ACM Group also reports about £50 million pounds of client funds on deposit, compared to about £11 million three months prior.
The company’s CEO Muhammad Rasoul commented to Finance Magnates: “Over the past 12 months we focused on revamping our technology. Together with our technology partner, we focused on our order management system (OMS), market pricing, API handling, etc.”
“Customers have a near seamless experience when it comes to order handling – clients that are trading $100,000 and $50 million get the same quality of execution regardless of their volumes. We also did a lot of work to optimize our MT4 solution and are ready to fully scale our offerings,” Mr Rasoul explained.