Alpha Fin Markets Consulting plc Pre-close trading update (2913J)
April 09 2020 - 2:00AM
UK Regulatory
TIDMAFM
RNS Number : 2913J
Alpha Fin Markets Consulting plc
09 April 2020
9 April 2020
Alpha Financial Markets Consulting plc
('Alpha FMC', 'Alpha', the 'Company' or 'Group')
Pre-close trading update for the year ending 31 March 2020
Alpha FMC (AIM: AFM), a leading global provider of specialist
consultancy services to the Asset and Wealth Management industry,
is pleased to provide its pre-close trading update for the year
ending 31 March 2020.
Alpha FMC has performed well and expects to report results
in-line with current full year market expectations. The Group has
experienced almost no effect on trading from the COVID-19 related
preventative measures, given the swift transition to effective
remote working by our clients and consultants and the timing of the
Group year end. The Group ended the year with approximately GBP20m
net cash or c GBP25m total cash balances having recently drawn its
GBP5m revolving credit facility to prudently maximise
liquidity.
At the time of this announcement, the Group has seen minimal
change to revenue levels. In recent weeks we have observed some
lengthening of client approval processes and a few smaller new
projects' start dates delayed. Looking ahead, as the impact of
COVID-19 continues to evolve, the Board expects that in due course
it will impact business development and new business, although this
is difficult to fully quantify at this stage. Given that there is
no visibility on the lifting of lockdown restrictions, either in
whole or in part, and hence the impact on business development is
unquantifiable, the Board is withdrawing future financial
performance guidance.
Given the unprecedented nature of COVID-19, the Group is taking
pre-emptive actions to manage costs in anticipation of reduced
activity levels. In addition to limiting recruitment to only a
small number of strategic hires and reducing discretionary
operational expenditure, from 1 April 2020 the Group's senior
leadership team, including the Global CEO and CFO and the
Non-Executive Directors, have volunteered to take a temporary 40
per cent reduction in salary to 30 September 2020.
Alpha also welcomes the various COVID-19 response initiatives
from governments globally to assist companies. We continue to
explore and assess the relevance to the Group, of all forms of
relief from governments and will adopt such measures to best
protect our people, enhance cashflow and prudently protect the
balance sheet, as appropriate.
Alpha will continue to monitor the developing COVID-19 situation
closely and will keep the market updated. At this stage, the Board
expects to deliver the annual results to 31 March 2020, on a
slightly extended timetable than normal, in the second half of
June.
Euan Fraser, Global CEO of Alpha FMC, commented:
"I am delighted that Alpha will record another year of growth
and meet market expectations for the year ended 31 March 2020. The
Group made great strategic progress, acquiring two new businesses,
Axxsys and Obsidian, launching its Pensions & Retail
Investments practice and growing our highly skilled team, including
several key senior hires. We were also particularly pleased with
the strong performance from our US business.
Whilst COVID-19 means uncertainty exists over how the coming
year will unfold, in the medium term the underlying industry trends
of cost reduction, increasing regulation and increasing assets
under management remain firmly in place, driving ongoing change
programmes globally for which Alpha's quality range of consulting
services continues to be well placed to advise and best assist our
clients' needs.
Our key priority is the overall well-being and health of our
staff and ensuring that we follow all governments' guidelines. Our
team deserves a huge thank you for adapting and managing so well to
these exceptional times, whilst continuing to support our clients
successfully."
E nquiries:
Alpha Financial Markets Consulting plc +44 (0)20 7796 9300
Euan Fraser, Global Chief Executive Officer
John Paton, Chief Financial Officer
Temple Bar Advisory
+44 (0)7795 425
Alex Child-Villiers 580
+44 (0)7827 960
William Barker 151
+44 (0)7769 655
Sam Livingstone 437
Grant Thornton UK LLP (Nominated Adviser) +44 (0)20 7383 5100
Philip Secrett
Richard Tonthat
Harrison Clarke
Seamus Fricker
Berenberg (Broker) +44 (0)20 3207 7800
Chris Bowman
Toby Flaux
Alix Mecklenburg-Solodkoff
This announcement contains inside information as defined in
Article 7 of the Market Abuse Regulation No. 596/2014.
About Alpha FMC:
Alpha FMC is a leading global provider of specialist consultancy
services to the asset and wealth management industry.
With over 400 consultants across twelve offices spanning the UK,
Europe, North America and Asia, Alpha FMC has the largest dedicated
team in the industry. Alpha FMC has provided consultancy services
to 350 clients , including 80% of the 20 largest global asset
managers by AUM and a range of other buy-side firms.
- ENDS -
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END
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