Alpha Group (Previously Alpha FX) Confirms 27% Revenue Jump in 2022

Alpha Group International (AIM:ALPH), previously known as Alpha FX Group, released its 2022 full-year results on Wednesday, revealing a robust revenue and net income gain compared to the previous year. The Group's earnings came in at £98.3m, increasing by 27% on a yearly basis.

Alpha Group Reports Strong 2022 Numbers

According to the London Stock Exchange's (LSE) filing made by Alpha Group, the company delivered 'strong financial performance' alongside a 'significant year of investment'. The profit before tax, including other operating income, was up 42% from £33.2 million to £47.2 million year-over-year (YoY).

Alpha Group saw visible growth in both of its principal divisions. FX Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term revenue grew 22% to £69.5 million, while Alternative Banking Solutions grew 41% to £28.8 million. Overall, the net profit for the year came in at £39.05 million, rising by £13 million YoY. This confirms information that Alpha Group shared with the market in the second half of January. At that time, in a trading update, it projected that revenue growth for last year would come in at 27%.

"We achieved these results alongside a significant year of investment in our people, processes, and technologies, with a 67% increase in employee headcount, taking our team to over 350 people across eight global offices, strengthening the foundations for future growth," Morgan Tillbrook, the Alpha Group Founder and CEO, commented in the financial report.

In reaction to the 2022 report, Alpha Group shares on the LSE rose 3% during Wednesday's opening session to £1850.

Alpha Boosts FX Risk Management

In the FX Risk Management sector, the company was able to increase the number of its clients by 19% YoY, from 881 reported in 2021 to 1,047. Additionally, the average revenue per FX Risk Management client continued to increase.

Continued growth led the company to boost its headcount from 214 to 357 employees in 2022. The FX Risk Management Front Office grew by 52% YoY, from 67 to 102.

Throughout the year, the company opened new international offices in Sydney, Milan, Bristol and Luxembourg, with another expected to open in Madrid as early as Q2 2023.

"In FX Risk Management meanwhile, the team's passion and belief in our 'Selling Standards' framework has meant there were often moments in 2022 where revenue was left on the table, as we doubled down on our risk management principles, and challenged clients even further on what they need, versus what they want; an essential business conversation that in times of heightened FX volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term can often be even more challenging," Tillbrook added.

Alpha Group, utilizing advanced technology and expertise, offers FX risk management and alternative banking solutions to institutions and corporates in Canada, Europe, and the UK. At the end of 2022, the company decided to change its name from Alpha FX, stating that "the change reflects where we are today as a business, as well as our ambition to be a leading provider of a growing range of financial solutions."

Additionally, the company has announced the appointment of Tim Powell to its team. Powell serves as the Chief Financial Officer (CFO) and an Executive Director of the Board.