Interim Report

RNS Number : 7927P

Alpha FX Group PLC

05 September 2017

 

5 September 2017

Alpha FX Group plc

("Alpha FX" or the "Group")

Interim Report

Alpha FX (AIM: AFX), the UK-based corporate foreign exchange service provider, is pleased to announce its unaudited Interim Report for the six months ended 30 June 2017.

Financial Highlights

·     Revenue up 90% to £6.3m (H1 2016: £3.3m)

·     Underlying operating profit* up 84% to £3.2m (H1 2016: £1.7m)

·     Reported operating profit up 40% to £2.4m (H1 2016: £1.7m)

·    Underlying operating profit margin for the period of 50% (H1 2016: 52%) and on a reported basis 38% (H1 2016: 52%)

·     Underlying basic earnings per share up 69% to 8.6p (H1 2016: 5.1p) and on a reported basis 6.3p (H1 2016: 5.1p)

·     Maiden interim dividend of 1.5 pence per share, payable on 13 October 2017

Operational highlights

·   Successful AIM listing on 7 April 2017, raising £13m of new money to provide the Group with collateral for an expanded FX forward book and increased volume and size of FX trades for new and existing clients

·     Front office staff numbers increased from 21 to 29 in the period

·     46 new clients added during the period, taking total to 269**

* Underlying excludes the impact of the one-off costs relating to the IPO and non-cash share based payments.

** The Group exclude Training Accounts (those that have generated less than £10,000 in revenue since being onboarded) in order to provide a clearer picture of client retention for the purposes of these figures.

Morgan Tillbrook, Chief Executive Officer of Alpha FX, commented:

"Alpha has developed a highly differentiated service in an established market through the strength of its vision, culture and people. Our client base continues to grow and there is significant scope to grow our presence in the UK corporate FX market. As Alpha's reputation grows ever stronger and the proceeds from the IPO are put to use, the Group looks forward to the significant opportunity that lies ahead and delivering on the objectives we set out at IPO."

Outlook

We are encouraged by our performance in the first half of the year and trading for the second half has begun well. The Board is confident that the results for the full year will be in line with market expectations.

Enquiries:

Alpha FX Group plc                                         Morgan Tillbrook, Founder and CEO Tim Kidd, CFO	via Alma PR
Liberum Capital Limited (Nominated Adviser and Sole Broker)                             Neil Patel Richard Bootle Dominik Götzenberger	Tel: [phone]
Alma PR (Financial Public Relations)      Josh Royston Rebecca Sanders-Hewett Helena Bogle	Tel: [phone]

Market Abuse Regulation

This announcement is released by Alpha FX Group plc and contains inside information for the purposes of the Market Abuse Regulation (EU) 596/2014 ("MAR") and is disclosed in accordance with the Company's obligations under Article 17 of MAR. The person who arranged for the release of this announcement on behalf of Alpha FX Group plc was Tim Kidd, Chief Financial Officer.

Notes to Editors

Alpha is a UK-based corporate foreign exchange service provider focused on managing exchange rate risk for UK corporates that trade internationally. The Group's primary client base consists of medium sized corporates that have a requirement to convert currency for a commercial purpose, such as buying or selling goods and services overseas, repatriating profits, or expatriating payroll. Since it was incorporated in 2010, Alpha has been able to build and retain a high-quality client base that includes brands such as ASOS, Holland & Barrett and Global Data.

 

Chief Executive's Report

I am pleased to report on a strong set of half year results, which include 12 weeks as a public listed company. The successful initial public offering on AIM in April 2017, which attracted strong support from high quality institutional investors, was a key milestone in the Group's evolution and one that I believe will enable Alpha to achieve its ambitious growth plans whilst retaining the unique culture which is integral to our success.

Revenue for the first half was £6.3 million, representing growth of 90% on the prior period, with underlying operating profit of £3.2 million representing 84% growth on the prior period. The performance has been driven by both an increase in new clients trading their foreign exchange through Alpha for the first time and an increasing volume of trades with existing clients. Additionally, the capital constraints prior to the IPO that restricted the Group from taking advantage of all of its available opportunities have now been relieved.

Market developments

The UK corporate FX market continues to be dominated by large multinational banks that hold approximately 85% market share, with the remaining balance comprising independent FX specialists. Alpha still makes up less than 1% of the UK corporate FX market and therefore the Group's potential for growth remains significant.    

In addition, the Group will continue to extend its brand and services overseas in order to support our growing acquisition of overseas clients.

Regulation

In January, Alpha submitted an application to the Financial Conduct Authority (FCA) for its wholly owned trading subsidiary Alpha FX Limited to be regulated as a BIPRU investment firm both in anticipation of later regulatory changes, possibly driven by MiFID II, and also to enable it to expand the range of products it provides.  Alpha FX Limited obtained authorisation on 1 August, enabling the Group to offer currency Swaps and non-leveraged FX Options to its clients, in addition to its existing products and services. The Group has self-elected not to provide FX Options to Retail Clients, restricting its FX Option service to Professional Clients and Eligible Counterparties only (as defined in the Conduct of Business Sourcebook). 

These products will continue to adhere to Alpha's philosophy of acting in its clients' best interests and always with the overriding objective of helping them to manage exchange rate risk.

Benefits of the IPO

The Group is already experiencing several benefits as a result of the AIM listing in April.  The proceeds from the primary fundraise has provided the Group with greater collateral. This is enabling it to expand the size of its FX forward book, allowing it to both significantly increase the number of forward contracts entered into with clients, as well as enter into larger FX trades and pursue new, larger opportunities in the UK corporate FX market which it could not pursue prior to the IPO. It is pleasing to note that we are already seeing evidence of this, both in terms of signing up new clients (including FTSE 250 clients), larger volume with new and existing clients and an enhanced pipeline of potential new business. Our Front Office team has also found that the enhanced profile and credibility of being a publicly listed business is helping to increase traction with potential new customers, as well as larger clients who may have previously discounted Alpha on account of its private company status and balance sheet size.

The strong client retention rate that the Group achieved for the financial year ended 31 December 2016 (97%) has continued during the half year with 46 new clients added, bringing the total number of corporates who trade through Alpha to 269. The Group has a track record of gaining a larger share of new and existing clients' annual currency purchasing volume as the relationship progresses, once the client experiences the benefits of Alpha's approach, which bodes well for generating further revenue growth in the years to come.  Alpha's co-founder, Jonathan Currie, has moved into a new role which will see him focus predominantly on maintaining the Group's high retention levels and enhancing customer experience.

The IPO has provided key employees with the opportunity to acquire equity. This has had a pronounced cultural benefit across the business, with employees taking on an enhanced sense of ownership and the Group is naturally benefitting from the mentality and motivation that comes with this.

Following the IPO, we have also found that the Group has become a more attractive prospect to both existing and potential liquidity providers in the marketplace.

People

The Group's success is based on its collegiate culture, and every new hire is carefully selected to ensure they fit with the Alpha ethos. The IPO has aided and we believe will continue to aid, the recruitment, retention and incentivisation of the Senior Management team and high calibre employees at all levels of the Group. Front Office staff recruited during 2016 have continued to develop in line with expectations and we expect their contributions to continue increasing incrementally as they mature. During the first half of the year, overall staff numbers have increased from 30 to 44, with eight new staff added in Front Office functions and six in the Back Office.  Notably, two of the increases in Back Office headcount were due to consultants becoming full-time employees.  Additionally, as new Portfolio Managers have become more experienced, we have been able to draw on existing employees in order to double the size of our team of Strategists and Support Dealers, providing Portfolio Managers and their clients with even greater levels of support and service. 

In conjunction with the IPO, we welcomed Clive Kahn to the Board as Non-Executive Chairman and Lisa Gordon, as Non-Executive Director, both of whom made valuable contributions throughout the IPO process and bring a wealth of experience in foreign exchange and public company oversight. Their independent role has been much appreciated and their continued counsel will be essential as the Group continues to execute on its growth strategy.

Furthermore, the opening of the London office has enabled Alpha to target a greater pool of skills, in particular, individuals that are bilingual and fluent in foreign languages which will prove vital as we continue to explore the possibilities of entering new territories.

Following consultation with our employees, we have also announced today an extension to the vesting periods from three to five years for shares allotted to full-time employees under the Growth Share Scheme implemented at the IPO. It is particularly satisfying to note that employees share the same vision and longer term outlook for the business.

Technology

Other new hires include additional support for the IT Development and Back Office teams. The sophistication of our client facing technology is a key area of differentiation for Alpha, helping us to identify, win and retain bigger clients and we will continue to invest in this field.  In addition, significant developments have been made in the technologies used by our Front and Back Office teams, which will increase our efficiency and effectiveness, particularly in areas of client insight and profiling, as well as resource management.

Financial Review

Revenue in the first half increased by 90% to £6.3m (H1 2016: £3.3m), whilst revenue growth against H2 2016 was 22%. In 2016, H2 benefitted from the outcome of the Brexit referendum on 23 June 2016, whilst 2016 H1 was impacted as a number of clients were reluctant to hedge prior to the referendum.

Underlying operating profit increased by 84% to £3.2m (H1 2016: £1.7m). The Group delivered an underlying operating profit margin of 50% (H1 2016: 52%), despite continued investment in headcount.

The average commission (revenue as a % of gross value of currency transactions sold) increased in the six months to 30 June 2017 to 0.61% from 0.36% in the six months to 30 June 2016 due to a higher proportion of forward trades (which attract a higher commission rate), larger trades and changes in the mix of currencies traded in the first half. The Group expects the average commission rate to fluctuate from period to period due to the different variables impacting it, primarily tenure, trade size, collateral size and currency pair. There were no structural changes in forward commission rates in the first half of the year compared to the prior period.

Cash flow

The Group's cash position can fluctuate significantly from period to period due to the impact of changes in the collateral received from clients, early settlements or the unrealised mark to market profit or loss from client swaps, resulting in an increase or decrease in cash with a corresponding change in other payables and trade receivables. Therefore, in addition to the statutory cash flow, the Group presents an adjusted net cash summary below which excludes the above items. In the six months to 30 June 2017 net cash on the non-statutory basis increased by £12.6m to £14.4m, largely due to the net proceeds of the IPO and the profitable trading in the period.

	30 June 2017	31 Dec 2016
	£'000	£'000
Net cash and cash equivalents	11,778	7,581
Variation margin paid to banking counterparties	6,638	4,342
	18,416	11,923
Margin received from clients & client held funds*	(5,246)	(9,772)
Net MTM timing loss/(profit) from client drawdowns and extensions within trade receivables	1,237	(350)
Adjusted net cash**	14,407	1,801

* Represents 'other payables' within 'trade and other payables' note 8

** Excluding collateral received from clients, early settlements and the unrealised mark to market profit or loss from client swaps

The table below presents the operating cash conversion on a similar basis, which excludes collateral received from clients, early settlements and the unrealised mark to market profit or loss from client swaps. Cash conversion for the six month period to 30 June 2017 was 65% in comparison to 60% for the financial year 2016.

	6 months to	6 months to	Year ended
	30 June 2017	30 June 2016	31 Dec 2016
	£'000	£'000	£'000
Underlying operating profit	3,174	1,729	4,358
Depreciation & amortisation	42	33	57
Bad debt provision	100	-	-
Increase in debtors**	(1,149)	(596)	(2,145)
(Decrease)/increase in creditors**	(53)	242	427
Less capital expenditure	(62)	(45)	(90)
Cash from operations before tax, and after capex**	2,052	1,363	2,607
Conversion	65%	79%	60%

** Excluding collateral received from clients, early settlements and the unrealised mark to market profit or loss from client swaps

Dividend

The Board intends to target a dividend of approximately 30% of the Group's underlying profits after tax in each financial year. In line with its stated dividend policy, the Board is pleased to declare a maiden interim dividend of 1.5 pence per share. The interim dividend will be payable on 13 October 2017 to shareholders on the register at 15 September 2017. The ex-dividend date is 14 September 2017.  

Outlook

We are encouraged by our performance in the first half of the year and trading for the second half has begun well. The Board is confident that the results for the full year will be in line with market expectations.

Consolidated statement of comprehensive income

		Unaudited Six months to 30 June 2017	Unaudited Six months to 30 June 2016	Audited Year ended  31 Dec 2016
	Note	£	£	£
Gross value of currency transactions sold		1,029,406,162	907,055,192	1,818,167,316
Gross value of currency transactions purchased		(1,023,115,851)	(903,747,967)	(1,809,691,892)
Revenue		6,290,311	3,307,225	8,475,424
Operating expenses		(3,116,569)	(1,578,250)	(4,117,175)
Underlying operating profit		3,173,742	1,728,975	4,358,249
Cost associated with the IPO		(612,873)	-	-
Share based payments		(147,000)	-	-
Operating profit		2,413,869	1,728,975	4,358,249
Finance costs		(32,626)	(6,350)	(45,164)
Profit before taxation		2,381,243	1,722,625	4,313,085
Taxation		(528,452)	(344,437)	(863,992)
Profit and total comprehensive income for the period
		1,852,791	1,378,188	3,449,093
Profit for the year attributable to:
Equity owners of the parent		1,852,791	1,070,373	2,940,086
Non-controlling interests		-	307,815	509,007
		1,852,791	1,378,188	3,449,093
Earnings per share attributable to equity owners of the parent (basic and diluted)	4	6.3p	5.1p	13.4p

Consolidated statement of financial position
		Unaudited	Unaudited	Audited
		30 June 2017	30 June 2016	31 Dec 2016
	Note	£	£	£
Non-current assets
Intangible assets		65,453	28,500	45,521
Property, plant and equipment		168,981	165,246	169,291
Total non-current assets		234,434	193,746	214,812
Current assets
Trade and other receivables	6	16,294,751	15,050,937	15,792,474
Cash and cash equivalents	7	11,777,551	11,093,309	7,963,625
Other cash balances	7	741,590	826,544	1,921,264
Total current assets		28,813,892	26,970,790	25,677,363
Total assets		29,048,326	27,164,536	25,892,175
Equity
Share capital	9	65,524	140	1,118
Share premium account		12,237,951	-	-
Capital redemption reserve		3,701	-	60
Merger reserve		666,529	-	666,529
Retained earnings		6,696,060	3,118,701	4,748,978
Total equity attributable to equity holders of the Company		19,669,765	3,118,841	5,416,685
Non-controlling interests		-	476,176	-
Total equity		19,669,765	3,595,017	5,416,685
Current liabilities
Loans and borrowings		-	599,000	1,381,282
Trade and other payables	8	8,810,769	21,142,372	17,826,893
Current tax liability		524,198	946,575	865,327
Total current liabilities		9,334,967	22,687,947	20,073,502
Non-current liabilities
Loans and borrowings		-	847,500	370,500
Deferred tax liability		43,594	34,072	31,488
Total non-current liabilities		43,594	881,572	401,988
Total equity and liabilities		29,048,326	27,164,536	25,892,175

Consolidated cash flow statement		Unaudited	Unaudited	Audited
		6 months to 30 June 2017	6 months to 30 June 2016	Year ended 31 Dec 2016
	Notes	£	£	£
Cash flows from operating activities
Profit before taxation		2,381,243	1,722,625	4,313,085
Finance costs		32,626	6,350	45,164
Amortisation of intangible assets		10,172	-	1,979
Depreciation of property, plant and equipment		32,310	32,741	54,724
Share based payment expense		147,000	-	-
Decrease in other receivables		32,022	461,284	484,105
(Decrease)/increase in other payables		(4,581,470)	4,981,066	6,053,170
Increase in derivative financial assets		(534,299)	(7,605,568)	(8,510,926)
(Decrease)/increase in derivative financial liabilities		(4,434,654)	7,829,953	3,649,156
Decrease/(increase) in other cash balances		1,179,674	(208,115)	(1,302,835)
Cash (outflows)/inflows from operating activities		(5,735,376)	7,220,336	4,787,622
Tax paid		(857,475)	(305,480)	(908,868)
Net cash (outflows)/inflows from operating activities		(6,592,851)	6,914,856	3,878,754
Cash flows from investing activities
Payments to acquire property, plant and equipment		(32,000)	(16,934)	(42,961)
Internally developed intangible assets		(30,104)	(28,500)	(47,500)
Purchase of non-controlling interest for cash		-	(1,000,000)	(1,000,000)
Net cash outflows from investing activities		(62,104)	(1,045,434)	(1,090,461)
Cash flows from financing activities
Proceeds from borrowings		400,000	-	475,925
Repayment of borrowings		(1,769,425)	(24,000)	(100,000)
Dividends paid to equity owners of the parent company		-	(97,483)	(510,000)
Amounts repaid by Directors		-	105,875	242,642
Amounts lent to Directors		-	-	(40,173)
Issue of ordinary shares by parent company		13,000,000	-	900
Share issue costs		(748,784)	-	-
Issue of ordinary shares by subsidiary		2,073	-	-
Repurchase of preference shares in subsidiary		-	-	(477,000)
Interest paid		(32,626)	(6,350)	(45,164)
Net cash outflows from financing activities		10,851,238	(21,958)	(452,870)
Increase in net cash and cash equivalents in the period		4,196,283	5,847,464	2,335,423
Net cash and cash equivalents at beginning of period		7,581,268	5,245,845	5,245,845
Net cash and cash equivalents at end of period	7	11,777,551	11,093,309	7,581,268

Consolidated statement of changes in equity
	Attributable to the owners of the parent
	Share capital	Share premium account	Capital redemption reserve	Merger reserve	Retained Earnings	Total	Non-controlling interests		Total
	£		£	£	£	£	£		£
Balance at 1 January 2016	140	-	-	-	1,916,753	1,916,893	991,438		2,908,331
Profit and total comprehensive income for the period	-	-	-	-	1,070,373	1,070,373	307,815		1,378,188
Transactions with owners
Shares repurchased from non-controlling interest	-	-	-	-	260,759	260,759	(1,260,759)		(1,000,000)
Cancellation of shares in subsidiary	-	-	-	-	(31,701)	(31,701)	31,701		-
Dividends paid	-	-	-	-	(97,483)	(97,483)	-		(97,483)
Waiver by non-controlling interests of dividend liabilities	-	-	-	-	-	-	405,981		405,981
Balance at 30 June 2016	140	-	-	-	3,118,701	3,118,841	476,176		3,595,017
Profit and total comprehensive income for the period	-	-	-	-	1,869,713	1,869,713	201,192		2,070,905
Transactions with owners
Shares issued	900	-	-	-	-	900	-		900)
Cancellation of shares in parent company	(60)	-	60	-	-	-	-		-
Settlement of non-controlling interest via share for share exchange	138	-	-	666,529	173,081	839,748	(839,610)		138
Dividends paid	-	-	-	-	(412,517)	(412,517)	-		(412,517)
Waiver by non-controlling interests of dividend liabilities	-	-	-	-	-	-	162,242)		162,242
Balance at 31 Dec 2016	1,118	-	60	666,529	4,748,978	5,416,685	-		5,416,685
Profit and total comprehensive income for the financial period	-	-	-	-	1,852,791	1,852,791	-		1,852,791
Transactions with owners
Bonus shares issued	54,782	-	-	-	(54,782)	-	-		-
Cancellation of shares in parent company	(3,641)	-	3,641	-	-	-	-		-
Shares issued on listing	13,265	12,986,735	-	-	-	13,000,000	-		13,000,000
Costs of issue of equity shares	-	(748,784)	-	-	-	(748,784)	-		(748,784)
Share based payments	-	-	-	-	149,073	149,073	-		149,073
Balance at 30 June 2017	65,524	12,237,951	3,701	666,529	6,696,060	19,669,765	-		19,669,765

Notes to the consolidated financial information

1. Corporate information

The Company, Alpha FX Group plc, is a public limited company having listed its shares on AIM, a market operated by The London Stock Exchange, on 7 April 2017. The Company is incorporated and domiciled in the UK (registered number 07262416). The consolidated financial statements incorporate the results of the Company and its subsidiary undertaking Alpha FX Limited.

2.  Basis of preparation

The basis of preparation of this financial information is consistent with the basis that will be adopted for the full year accounts which will be prepared in accordance with IFRS as adopted by the European Union.

While the financial figures included in this interim report have been computed in accordance with IFRS applicable to interim periods, this interim report does not contain sufficient information to constitute an interim financial report as defined in IAS 34.

This interim financial information has not been audited and the financial information contained in this report does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The year to 31 December 2016 has been extracted from the audited financial statements for that year.

The Group's financial statements for the year ended 31 December 2016 have been reported on by auditors, BDO LLP, and have been delivered to the Registrar of Companies. The auditors' report on those financial statements was unqualified and did not contain statements under Section 498(2) or Section 498(3) of the Companies Act 2006.

Accounting policies

The accounting policies adopted in these interim financial statements are identical to the those adopted in the Group's most recent annual financial statements for the year ended 31 December 2016 except as described below.

Share based payments

The Group issues equity-settled share based payments to certain senior executives of the Group. Equity-settled share based schemes are measured at fair value, excluding the effect of non market-based vesting conditions, at the date of grant using an appropriate option pricing model. The probability of meeting non-market vesting conditions which includes revenue targets, is used to estimate the number of share options which are likely to vest.

The fair value of the shares or share options is recognised over the vesting period to reflect the value of the employee services received. The charge relating to grants to employees of the Company is recognised as an expense in the income statement.

3. Segmental reporting

The revenue for the Group is generated through the provision of commercial and wholesale foreign exchange services and this is the sole operating segment of the group. All revenue is derived from within the UK.

4. Earnings per share

Basic earnings per share is calculated by dividing the profit for the period attributable to equity holders of the parent, by the weighted average number of ordinary shares during the period. Diluted earnings per share additionally includes in the calculation, the weighted average number of ordinary shares that would be issued on conversion of any dilutive potential ordinary shares.

The Group additionally discloses an underlying earnings per share calculation that excludes the impact of the one-off costs relating to the IPO and their tax effect and share based payments, which better enables comparison of financial performance in the current period with comparative periods.

	Unaudited six	Unaudited six
	months ended	months ended	Year ended
	30 June 2017	30 June 2016	31 Dec 2016
Underlying - basic	8.6p	5.1p	13.4p
Underlying - diluted	8.6p	5.1p	13.4p
Basic earnings per share	6.3p	5.1p	13.4p
Diluted earnings per share	6.3p	5.1p	13.4p

The calculation of basic and diluted earnings per share is based on the following number of shares:

	Unaudited six	Unaudited six
	months ended	months ended	Year ended
	30 June 2017	30 June 2016	31 Dec 2016
	No.	No.	No.
Basic weighted average shares	29,244,108	21,000,000	21,969,750
Contingently issuable shares	28,223	-	-
Diluted weigthed average shares	29,272,331	21,000,000	21,969,750

The earnings used in the calculation of basic, diluted and underlying earnings per share are set out below:

	Unaudited six	Unaudited six
	months ended	months ended	Year ended
	30 June 2017	30 June 2016	31 Dec 2016
	£	£	£
Profit after tax for the period	1,852,791	1,378,188	3,449,093
Non-controlling interests	-	(307,815)	(509,007)
Earnings - basic and diluted	1,852,791	1,070,373	2,940,086
Costs associated with the IPO	612,873	-	-
Tax effect	(88,718)	-	-
Share based payments	147,000	-	-
Earnings - underlying	2,523,946	1,070,373	2,940,086

5. Dividends

The Board has recommended the payment of an interim dividend to shareholders in respect of the year ended 31 December 2017 of 1.5p per share (total £491,430). The interim dividend will be payable on 13 October 2017.

6. Trade and other receivables

Trade receivables represent the fair value of derivative financial assets arising as a result of matched principal transactions.

	Unaudited	Unaudited
	30 June 2017	30 June 2016	31 Dec 2016
	£	£	£
Foreign currency forward contracts with customers	16,015,348	13,742,739	15,549,510
Foreign currency forward contracts with banking counterparties	192,568	1,025,519	124,107
Trade receivables (derivative financial asset)	16,207,916	14,768,258	15,673,617
Other receivables	25,316	119,573	1,533
Directors' current account	-	141,000	-
Prepayments	61,519	22,106	117,324
	16,294,751	15,050,937	15,792,474

7. Cash

Cash and cash equivalents comprise cash balances and deposits held at call with banks.

Other cash balances comprise cash held as collateral with banking counterparties for which the Group does not have immediate access.

Cash balances included within derivative financial assets relate to the net mark to market of derivative contracts with liquidity providers.

	Unaudited	Unaudited
	30 June 2017	30 June 2016	31 Dec 2016
	£	£	£
Cash and cash equivalents	11,777,551	11,093,309	7,963,625
Bank overdraft	-	-	(382,357)
Net cash and cash equivalents	11,777,551	11,093,309	7,581,268
Variation margin called by counterparties*	6,638,503	2,789,103	4,341,820
Other cash balances	741,590	826,544	1,921,264
Total cash	19,157,644	14,708,956	13,844,352

*Included with trade receivables and trade payables.

8. Trade and other payables

Trade payables represent the fair value of derivative financial liabilities arising as a result of matched principal transactions.

Other payables consist of margin received from clients and client held funds.

	Unaudited	Unaudited
	30 June 2017	30 June 2016	31 Dec 2016
	£	£	£
Foreign currency forward contracts with customers	3,019,424	11,522,550	7,463,047
Other foreign exchange forward contracts	31,220	143,546	22,250
Trade payables (derivative financial liability)	3,050,644	11,666,096	7,485,297
Other payables	5,245,625	8,974,124	9,771,807
Directors' current account	-	44,406	-
Dividends payable to non-controlling interests	-	162,393	-
Other taxation and social security	174,780	166,388	216,306
Accruals and deferred income	339,720	128,965	353,483
	8,810,769	21,142,372	17,826,893

9. Share capital

The following movements of share capital occurred in the 6 months to 30 June 2017.

Number of shares	A shares	B  shares	C shares	D shares	Ordinary shares	Deferred shares	Total
At 1 January 2017  - shares of £1 each	860	118	31	109	-	-	1,118
Bonus issue	42,140	5,782	1,519	5,341	-	-	54,782
	43,000	5,900	1,550	5,450	-	-	55,900
Conversion to £0.002 each	21,500,000	2,950,000	775,000	2,725,000	-	-	27,950,000
Re-designation	(21,500,000)	(2,950,000)	(775,000)	(2,725,000)	26,129,326	1,820,674	-
Cancellation of shares	-	-	-	-	-	(1,820,674)	(1,820,674)
Issue of new shares on IPO	-	-	-	-	6,632,653	-	6,632,653
At 30 June 2017	-	-	-	-	32,761,979	-	32,761,979
At 30 June 2017 Nominal value	-	-		-	£65,524	-	£65,524

On 24 March 2017, a bonus issues of shares was made for all A, B, C and D shares of 49 additional shares for each share held. On the same date, all shares were converted from ordinary shares of £1 each to ordinary shares of £0.002 each.

On 31 March 2017, all the A and B shares were converted into ordinary shares, the C shares were converted into 371,851 ordinary shares and 403,149 deferred shares and the D shares were converted into 1,307,475 ordinary shares and 1,417,525 deferred shares. On the same date the 1,820,674 deferred shares were cancelled.

On 7 April 2017, the Company issued 6,632,653 new shares upon admission to the London Stock Exchange.

10. Subsequent events

No significant events have occurred between the reporting date and the date of approval.

 

END

 

 

IR OKQDKCBKDPCK