Alpha FX Sees Dip in H1 Profit despite Solid Revenue Uptick

Alpha FX (LON: AFX), a UK-listed foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (FX) broker, has today filed its unaudited half-yearly interim report ending on June 30, 2002, with the London Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term. Though the brokerage reported a healthy increase in revenue, its profits declined year-on-year.

Finance Magnates earlier reported on the brokerage’s 16 percent revenue jump to £18 million in H1 2020, but the recent report detailed its half-yearly financials.

The underlying operating profit of the brokerage went down 8.9 percent year-on-year to £6.1 million, while the reported figures stood at £5.9 million, compared to £6.2 million in the first half of the previous year.

Alpha FX highlighted that the profits were calculated after the deduction of a temporary provision of £0.5 million for the debt of its Norwegian client.

The brokerage’s net profit for the first half of 2020 stood at £3.7 million, a 26 percent year-on-year drop.

The underlying operating profit margin for the period stood at 34 percent, compared to 34 percent in the same half the previous year, and it had basic earnings per share at basic earnings per share of 8.9p.

Increased FX Demand among Institutions

The company pointed out that although the volumes ballooned in the first quarter of the year due to volatility, the demand was corrected in the next quarter.

Meanwhile, the broker also reported an increase in the number of its clients to 671 from 648.

Though the demand for the institutional client base of the broker increased in the period, it saw delayed and reduced FX activities among its corporate clients in both the United Kingdom and Canada.

“I am pleased to report on another period of progress delivered across all areas of the business,” Morgan Tillbrook, CEO of Alpha FX, said in a statement. “Whilst uncertainty remains, we have proven that we have the resilience and drive to succeed, and I look ahead to the rest of the year with confidence.”