fundtruffle

Wealth and asset manager service provider Alpha FMC brings home the goods (again)

David Stevenson, 20/11/2019

In 2017, an obscure company floated on AIM, Alpha Financial Markets Consulting. This company which counts over 75 percent of the largest asset and wealth managers as clients soon became the darling of small cap fund managers, as it powered up in its maiden year and beyond.

While its share price ascendancy has certainly cooled in recent times, today’s interim results suggest a company that still has plenty of gas left in the tank. Its first half revenues are up 8.9 percent to £42.4 million, while group adjusted EBITDA increased by 12.4 percent to £9.5 million, both on a year-on-year basis.

The company has been adding to its suite of services with some bolt-on acquisitions such as Axxsys, an investment management consultancy business which fits nicely into Alpha’s existing offering although the deal did dent pre-tax profits to a degree.

So what does Alpha FMC do? Given its recent moves into investment management software products with the acquisition of Obsidian Solutions and the launch of Pension and Retail Investments it might be easier to answer what the company doesn’t offer but in short a range of services to front, middle and back offices of large institutions.

One area the firm has worked on is post-merger integration (including those of large UK asset managers, Standard Life and Aberdeen Asset Management).

For a firm still in its infancy on the markets, the pace of its global growth is phenomenal. In the first half ending 30 September, the firm now has offices in Copenhagen and Toronto as the result of its bolt-on of Axxsys.

Given the regulatory tsunami that has plagued the financial services industry, Alpha’s services have never been more in demand and given it has also launched Exchange Traded Product (ETP) & Indexing practice seems to have more bases covered.

Euan Fraser, global chief executive officer of Alpha FMC said in a statement: “Trading is in line with Board expectations for the full year and we see multiple opportunities to create further growth ahead. We look forward confidently to progressing our objectives through the remainder of the financial year and beyond."

ALpha FMC's share price is up 1.55 percent to 196p.

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