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
Luc Baqué (Chief Executive Officer)
John Paton (Chief Financial Officer)
Georgina Sharley (Company Secretary)
|
+44 (0)20 7796 9300
|
Investec Bank plc - Nominated Adviser, Joint
Corporate Broker
Patrick Robb
James Rudd
Harry Hargreaves
|
+44 (0)20 7597 4000
|
Berenberg - Joint Corporate
Broker
Toby Flaux
James Thompson
Alix
Mecklenburg-Solodkoff
|
+44 (0)20 3207 7800
|
Camarco - Financial PR
Ed Gascoigne-Pees
|
+44 (0)20 3757 4980
|
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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