REG - Alpha Fin. Markets - Trading Update

Alpha Financial Markets ConsultingAnnouncement

07/02/2024 07:00

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RNS Number : 2509C  Alpha Fin Markets Consulting plc  07 February 2024

7 February 2024

 

 

Alpha Financial Markets Consulting plc

('Alpha FMC' or 'Alpha' or the 'Group')

 

Trading update

 

Alpha FMC (AIM: AFM), a leading global consultancy to the financial services
industry, provides a trading update for the year ending 31 March 2024 ("FY
24").

 

As previously reported, the global consulting market has experienced a more
competitive environment during the current financial year and the supply and
demand dynamics continue to rebalance. A longer sales cycle has remained
evident with trading starting more slowly than planned in January and a number
of new client projects now expected to start in FY 25. While consultant
utilisation improved in Q3 close to target levels, the slower start has
resulted in lower than anticipated utilisation at the beginning of Q4. Overall
utilisation in Q4 is now expected to remain consistent with Q3, with an
improving trend through the rest of the quarter.

 

Consequently, the Board now expects the Group to deliver FY 24 results showing
net fee income growth of up to 5% against the prior year and adjusted EBITDA
of approximately £42m - £43m at a slightly improved margin on the first
half. In the current market environment the Group has maintained consistent
day rates, a selective approach to hiring into key growth areas, and continues
to manage actively its cost base. The Group also maintains a strong net cash
position.

 

The Group continues to see robust client demand and has seen higher sales wins
in recent months, while maintaining a strong pipeline of new business
opportunities. These factors, together with the strong long-term structural
growth drivers that underpin demand for Alpha's services and the Group's
compelling proposition to clients, gives us confidence that the Group remains
well positioned for continued growth, in line with our ambition to double the
business again by 2028.

 

Luc Baqué, Chief Executive Officer, commented:

"The challenging market environment previously reported remains prevalent.
While trading is improving in the second half it has not recovered at the pace
we envisaged when reporting our interim results, as the market continues to
rebalance supply and demand. However, we continue to see improving market
conditions and with the Group's ongoing strong pipeline, leading expertise,
strong propositions and multiple growth opportunities, we remain well
positioned for future growth."

 

Enquiries:

 Alpha Financial Markets Consulting plc                         +44 (0)20 7796 9300

 Luc Baqué (Chief Executive Officer)

 John Paton (Chief Financial Officer)

 Georgina Sharley (Company Secretary)

 Investec Bank plc - Nominated Adviser, Joint Corporate Broker  +44 (0)20 7597 4000

 Patrick Robb

 James Rudd

 Harry Hargreaves

 Berenberg - Joint Corporate Broker                             +44 (0)20 3207 7800

 Toby Flaux

 James Thompson

 Alix Mecklenburg-Solodkoff

 Camarco - Financial PR                                         +44 (0)20 3757 4980

 Ed Gascoigne-Pees
 Phoebe Pugh

This announcement contains inside information as defined in Article 7 of the
Market Abuse Regulation No. 596/2014.

About Alpha FMC:

Headquartered in the UK and quoted on the Alternative Investment Market of the
London Stock Exchange, Alpha is a leading global consultancy to the financial
services industry.

Alpha combines highly specialist, sector-focussed management consulting and
technology expertise to support the client transformation lifecycle. It has
over 1,000 consultants globally, operating from 17 client-facing offices
spanning the UK, North America, Europe and APAC.

- ENDS -

 

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