Shares in Alpha FX Group PLC (AIM:AFX) climbed over 10% after the company said profits for the current year are set to beat forecasts and announced that sales continued to grow strongly in line with its recently upgraded expectations, with consistent month-on-month improvements against last year.
The provider of forex risk management, accounts and payment solutions said profit for 2022 is expected to be "materially ahead" of expectations due to the interest rate environment generating extra income from its Alternative Banking division’s overnight cash balances.
Morgan Tillbrook, Alpha FX's founder and chief executive, commented: "I am pleased that we have continued to deliver on our upgraded revenue expectations, highlighting our robust business model during a period of macro volatility, with both our divisions continuing to perform strongly into H2.
"Our tried and tested strategy in FX Risk Management continues to be successful within the current macroeconomic conditions and we remain committed to ensuring our clients are advised appropriately whilst continuing to manage our own risk profile.”
The company continued with its accelerated investment programme in its Alternative Banking division, as well as in the global expansion of the FX Risk Management division.
Alpha has been granted a regulatory licence in Australia, with the team already expanding and generating revenue, it said in a statement Friday.
It also launched a new website and brand refresh at the beginning of this month.
Recent volatility has not brought forward any material revenues and trading has followed a consistent pattern of growth to 2021, it added.
There has not yet been any significant change in client default rates compared to its original expectations set at the start of the year.
Alpha FX said it provides credit facilities against the hedging instruments it offers and naturally expects client defaults to increase in more challenging macro environments like current times.
Shares rose 10.99% to 2,070.00p in mid-morning trade.