Alpha Group International, the provider of forex solutions to corporates and institutions, ended the financial year 2023 with a revenue of £110 million, an increase of 12 percent. The pre-tax profits also jumped 140 percent to about £115 million.

Alpha Group’s Strong Results

The company's profits received a boost from the higher interest on client balances, which for the period came in at £73 million, compared to £9.3 million in the previous year. Its average client balance jumped 31 percent between 2022 and 2023, on which it received an average interest of 3.6 percent.

The London-listed company highlighted that the underlying profit before tax grew 10 percent to about £42 million. However, the underlying profit margin of the company remained the same at 39 percent.

Alpha Group’s offerings include FX Risk Management and alternative banking solutions to corporates and institutions internationally. It is performing exceptionally well and has recorded solid gains in revenue for the last several consecutive quarters. It further expanded its offerings by launching an alternative banking platform in 2021.

The latest trading update highlighted that the client balances from alternative banking increased 31 percent year-over-year in the fourth quarter of 2023, taking the amount to £2.1 billion.

Business Expansion Continues

Furthermore, the Alpha Group (previously Alpha FX) launched a new Fund Finance division last year and opened two Corporate FXRM offices: one in Madrid and the other in Munich. The group additionally acquired Cobase last year, which was its first acquisition.

“Despite a challenging trading environment in 2023, our team have continued to work hard to deliver profitable revenue growth, whilst also making excellent progress on our long-term growth strategy. At the same time, our previous diversification into Alternative Banking has enabled us to benefit from exceptional levels of interest income,” said Morgan Tillbrook, the CEO at the Alpha Group.

“Whilst we have opted to exclude these numbers from our underlying profit for transparency, the fact remains that this is very much a by-product of our diversified business model and is providing us with transformative levels of capital from which we can significantly enhance our long-term growth prospects.”