A tightening regulatory backdrop and rising consolidation within the asset management industry is driving work for Alpha Financial Markets Consulting (AFM). Client numbers rose to 252 during the first half, up from 227 the same time the prior year. After part of the proceeds from last year’s IPO were used to wipe out debt, a substantial reduction in finance expenses helped push the group into a pre-tax profit position.
The UK remained the largest contributor to revenue, growing more than a third to £23.9m. However, geographical expansion continued, with headcount growing by two-thirds in the US and more than a quarter in Europe and Asia. Revenues were up in those operating segments by 29 per cent and 42 per cent, respectively. A new chief executive of the Netherlands business was appointed to build better relationships with the country’s institutional investors, which is one of the largest investment markets in Europe.
A fintech and innovation practice was launched in response to client demand for advice on using artificial intelligence, blockchain and automation, as well as establishing partnerships with fintech start-ups.
Analysts at Panmure Gordon expect adjusted pre-tax profits of £16m for the year to March 2019, giving EPS of 11.6p (from £6m and 4p in FY2018).
| ALPHA FINANCIAL MARKETS CONSULTING (AFM) | ||||
| ORD PRICE: | 219p | MARKET VALUE: | £223m | |
| TOUCH: | 215-222p | 12-MONTH HIGH: | 274p | LOW: 159p |
| DIVIDEND YIELD: | 2.6% | PE RATIO: | 32 | |
| NET ASSET VALUE: | 83p* | NET CASH: | £10.6m | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2017 | 28.7 | -1.1 | -2.4 | 1.48 |
| 2018 | 40.0 | 6.7 | 4.9 | 1.91 |
| % change | +39 | - | - | +29 |
| Ex-div: | 4 Dec | |||
| Payment: | 19 Dec | |||
| *Includes intangible assets of £74.3m, or 73p a share | ||||
