Interim Report

RNS Number : 7711Z

Alpha FX Group PLC

05 September 2018

 

Alpha FX Group plc

("Alpha FX", "Alpha" or the "Group")

Interim Report

Alpha FX (AIM: AFX), a UK-based foreign exchange service provider working for corporates  and institutions, is pleased to announce its unaudited Interim Report for the six months ended 30 June 2018.

Financial Highlights

·     Revenue up 55% to £9.7m (H1 2017: £6.3m)

·     Underlying* operating profit up 29% to £4.1m (H1 2017: £3.2m)

·     Reported operating profit up 60% to £3.9m (H1 2017: £2.4m)

·     Underlying operating profit margin for the period of 42% (H1 2017: 50%) and 40% (H1 2017: 38%) on a reported basis

·     Underlying basic earnings per share up 14% to 9.8p (H1 2017: 8.6p) and up 46% to 9.2p (H1 2017: 6.3p) on a reported basis

·     Interim dividend up 27% to 1.9 pence per share (H1 2017: 1.5 pence), payable on 12 October 2018.

Operational highlights

·     Staff numbers increased from 51 to 61 in the period, representing eight additional front office and two back office staff, aligning resource with growth

·     Successful launch of the institutional division in March 2018

·     Increase in clients from 310 to 392 in the period**

·     Increased penetration into international markets

·     New products, increased regulatory approvals and enhanced proprietary technology, all helping to strengthen existing relationships and create new growth opportunities

* Underlying excludes the impact of one-off items relating to non-recurring property and 2017 IPO costs and 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.

Outlook

Trading in the second half of the year to date has been positive and we remain highly confident of delivering a full year outcome at least in line with expectations.

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

"The first half of the year has seen considerable progress across all facets of the business. Revenue growth has been pleasing and justified the investment decisions made in the prior financial year. Driven by client demand, we continue to make advances in regulatory approvals and technology in order to enhance our product offering.  This strengthens relationships with existing clients and enables us to increase revenues and also cater for a more diverse range of requirements and thereby service a wider range of new clients. At the same time, we continue to increase our addressable market by attracting entrepreneurial talent who can leverage our technology, infrastructure and brand to access wider markets.

"Underpinning Alpha's growth is our ability to attract and retain exceptional talent by providing a culture of progression and opportunity within a community of high performing and likeminded people.  In continued support of this, I am pleased to announce the establishment of a C Share Growth Scheme which will see further employees benefit from the success that they create. I am confident that aligning employee ownership with growth in the business, along with our investments in people, new income streams and technology will enable us to fully capitalise on our market opportunity and deliver longer term, sustainable returns for all shareholders."

Enquiries

Alpha FX Group plc                                         Morgan Tillbrook, Founder and CEO Tim Kidd, CFO Henry Lisney, COO	via Alma PR
Liberum Capital Limited (Nominated Adviser and Sole Broker)                             Neil Patel Richard Bootle Kane Collings	Tel: [phone]
Alma PR (Financial Public Relations)      Josh Royston Helena Bogle Rebecca Sanders-Hewett	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 FX is a UK-based foreign exchange service provider focused on managing exchange rate risk for corporates and institutions that trade internationally. The Group's primary client base consists of corporates and institutions 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 FX has been able to build and retain a high-quality client base that includes a number of highly respected household brands.

 

Chief Executive's Report

Introduction

I am pleased to be able to report on another strong period for the Group, one in which there has continued to be excellent progress.

Revenue for the first six months of the year was £9.7m, representing growth of 55% over the prior period, whilst underlying operating profit increased to £4.1m, a 29% increase against the prior period.

Revenue growth was spearheaded by more client business secured in our core UK market alongside increased traction from international clients serviced through our London office.  Additionally, Alpha is already seeing an initial return from the institutional division, which was launched in March of this year, as well as increasing revenue growth from our derivatives desk, launched in August 2017.

Business Overview

Our client numbers continue to rise due to organic growth in our core corporate UK market, with significant growth also coming from new European markets following our decision to hire a number of foreign language speakers to our London office. This has confirmed management's belief that European clients can be successfully serviced from the UK, justifying the investment in people and also the decision to relocate our Head Office to London in December last year. The move to the London office has served to attract a number of highly capable multi-lingual speakers. As a result of the growth in international business, we have also seen an evolution of the Group's forward order book and, consequently, diversification of the range of currencies being traded.

The successful launch of the institutional division is another key milestone for the Group. Through a performance based equity incentive mechanism we have been able to attract a highly talented entrepreneurial team and align their interests to the Group, whilst allowing the expansion of the Group's services to a new client base without diverting management's focus from its core market. Significant progress has already been made and we are pleased that the team is performing well.

Having carefully investigated other markets for some time, combined with experience within the Alpha team, we believe that Canada represents a significant opportunity for the Group as it shares similar dynamics to the UK market. Servicing these clients from London is unfeasible given the time differences involved. We therefore plan to establish a new Canadian office in Toronto, subject to receiving regulatory approvals, extending our runway for growth even further.  This new office will be led by a highly experienced individual, with proven leadership skills in building and growing a highly successful foreign exchange business.

The ongoing investment in our technology team has enabled us to continue enhancing the capabilities of our online client platform, as well as develop a number of bespoke solutions that are further supporting our front office team with both client acquisition and retention. One exciting example is the launch of Alpha Pay - an online international payments platform designed to reduce the time, cost and administrative burden of making cross-border payments by providing a simpler, faster and more reliable solution. We have also invested in developing innovative new products, driven by existing and impending changes in regulation and the opportunity to service a wider range of clients' needs. This strategy has already proved successful; for instance, having introduced derivatives in August 2017, these now represent a growing part of the order book and are set to grow further.

As such, the period has been characterised as one of investment; in headcount, new income streams and technology, as well as obtaining the necessary regulatory approvals to future proof the business and ensure we have an open runway to deliver compelling new innovations. These investments are reflected in the reduced profit margin for the period, although we are already seeing a positive impact from these investments and the Group will look to invest further where the opportunity exists to deliver long-term and sustained shareholder value.

Market Developments

Alpha still makes up less than 1% of the UK corporate FX market and therefore the Group's potential for growth in its core market remains significant.  Furthermore, with the Group's movement into international markets and the institutional market, the Group's addressable market is becoming even larger. 

Regulatory Opportunities

In January 2018, the Second Payment Service Directive ("PSD2") was implemented across the EU and the EEA. PSD2 aims to create a level playing field for all payment service providers (of which Alpha is one), through reducing the control banks have on customer account information and the ability to provide payment initiation services. With PSD2 requiring banks to open access to payment systems and client accounts, the Directive enables third parties to access the accounts of clients, aggregate the information and initiate payments on the clients behalf (subject to client consent). Third parties that access client data or make payments on their behalf are required to be regulated by the FCA, with the gathering of bank account information and/or payment initiation services requiring firms to be approved by the FCA as either an Account Information Services Provider ("AISP") or Payment Initiation Services Provider ("PISP"), respectively. Alpha is pleased to report that it has been approved to provide both these services.

These approvals not only serve to demonstrate the robust security and strong client protection Alpha has in place, but also provides exciting opportunities to the Group. This includes the ability to connect to client bank accounts and view balance and transaction data in real time, providing clients with greater insight into their foreign currency exposures and subsequent hedging decisions. Other applications include enabling clients to initiate payment from their banks using Alpha's online platform; reducing friction when moving funds to Alpha in settlement of FX transactions.

People & Culture

Investment in staff over the period saw the headcount increase by 10, up to 61. Front office staff numbers increased by eight and back office by two. People remain our most important asset, but only if they are the right people.  Our priority therefore remains the recruitment, retention and development of not only exceptional talent, but talent that will be the right cultural fit for the Group. 

Moving forward, the Group has established a dedicated resource to ensure that the culture and team that has fuelled the Group's success continues to evolve in the right vein as the business grows.

Furthermore, I am pleased to announce that we have established a C Share Growth Scheme which will see further employees benefit from the success that they create.

Office relocation

The Group relocated to London in December 2017 to aid recruitment, particularly of bi-lingual candidates. Initially, we selected a serviced office as it gave greater flexibility and time to find the ideal location for a long-term headquarters. Management are close to finalising the lease for new premises, an important step in giving Alpha a firm base from which to scale up, whilst supporting the unique culture which ultimately underpins the Group's success.

Technology

Technology continues to be a key differentiator for Alpha - one which helps to accelerate the momentum in the business. Through our proprietary, cloud based platform we can work with clients to create the solutions that they want, to the specification that they need; add new functionality and products which we know will open us up to a wider range of clients; and drive efficiencies, thereby protecting the operating margin.

We are delighted with the developments that have been made during the period, in line with our technology roadmap. Improvements have been made to our portal that give clients greater insight and features have been added, in light of regulatory approvals received, which will allow us to work more closely with them and build stronger relationships.

The Group is about to launch Alpha Pay, a payments platform designed to provide a simpler, faster and more cost-effective way of making multiple international payments. This has been developed extensively and represents an excellent opportunity to increase the levels of business we do with our existing client base, as well as opening up considerable new opportunities. In the run up to launch, the Group engaged a number of clients and prospects for feedback on the solution and there is subsequently a waiting list of businesses who have expressed a desire to work with Alpha, contingent on the product launching.

Further investments will be made in technology, including increasing automation and improvements to straight through processing, driving greater efficiencies in the business.

Finally, a number of key members of the technology team are to be awarded equity under the C Share Growth Scheme.  Technology has served as a catalyst for Alpha's momentum, and we believe this increased sense of ownership will serve to perpetuate this trend long into the future, by ensuring those driving our innovations are motivated, retained and rewarded.

Financial Review

Revenue for the period increased by 55% over the comparable prior period to £9.7m (H1 2017: £6.3m). Revenue growth has been driven by increasing client numbers both from the UK and overseas as well as the promising start made by the new institutional team. In the period to 30 June 2018 revenue growth remained unaffected by changes in client commission rates.

Underlying operating profit increased by 29% to £4.1m (H1 2017: £3.2m). The period represented one of continued investment with front office headcount increasing by eight to 40 heads, whilst back office headcount increased by two to 21. As a result of the investment, the underlying operating margin was 42% (FY 2017: 50%).

Underlying operating profit excludes the impact of one-off items relating to non-recurring property, the 2017 IPO costs and share based payments, which better enables comparison of financial performance in the current period with comparative periods. The non-recurring property costs in the period of £0.2m relate to an increase in the onerous lease provision representing the anticipated difference in rent receivable and rent payable for the vacated premises in Reading for the remainder of the lease. The Group is in the process of signing a lease for permanent premises in London and it is intended that the double running costs of the new premises and the current serviced office during the fit-out period will also be included within non-recurring property costs in the second half of the year.

Underlying basic earnings per share increased to 9.8p in the period (H1 2017: 8.6p) whilst basic earnings per share increased from 6.3p to 9.2p.

Cash flow

On a statutory basis, cash and cash equivalents increased by £4.5m in the period to £17.5m. However, 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 settlement of trades, 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 a cash summary below which excludes the above items, providing a better view of the Group's net cash resources. In the 6 months to 30 June 2018 net cash on this basis increased from £13.7m at 31 December 2017  to £13.9m (30 June 2017 : £14.4m).

	30 June 2018	30 June 2017
	£'000	£'000
Cash and cash equivalents	17,537	11,778
Variation margin paid to banking counterparties	598	6,638
	18,135	18,416
Margin received from clients & client held funds*	(6,959)	(5,246)
Net MTM loss from client swaps within trade receivables	2,764	1,237
Adjusted net cash**	13,940	14,407

* Represents 'other payables' within 'trade and other payables' note 7

** 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 period was 61% and had the temporary benefit of a change in the timing of payment of commissions which has improved the conversion by approximately 5%.

	6 months to	6 months to
	30 June 2018	30 June 2017
	£'000	£'000
Underlying operating profit	4,104	3,174
Depreciation & amortisation	58	42
Bad debt provision	-	100
Increase in debtors**	(2,210)	(1,149)
Increase/(decrease) in creditors**	917	(53)
Less capital expenditure	(347)	(62)
Cash from operations before tax and after capex**	2,522	2,052
Conversion	61%	65%

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

New Employee Incentive Scheme

The Group will be adopting a growth share scheme, in addition and on similar terms to the existing B Share Growth Scheme implemented at IPO, under which 793 C ordinary shares ("C Shares") in Alpha FX Limited (the "Company") will be issued to full-time employees of the Group ("C Share Growth Scheme"). The C Shares confer no upfront economic rights to their holders and in particular holders of the C Shares are not entitled to receive dividends, receive notice of, attend, speak or vote at general meetings of the Company and are not entitled rights to participate in any distributions upon a liquidation or capital reduction of the Company.

The C Shares contain a put option, such that, when and to the extent vested, they can be converted into ordinary shares in the Group. The rate of conversion is that the C Shares will be regarded as worth a pro rata share of the share price gain of Alpha FX Group plc above a hurdle price based upon the market price of Alpha FX Group plc at time of allotment.

Upon conversion the number of ordinary shares in Alpha FX Group plc a C Shareholder will receive such number of ordinary shares whose value is equivalent to the Group's closing share price at the conversion date. Conversion is only permitted to the extent that the C Shares have vested. The C Shares will vest in five tranches, occurring annually, starting on 31 December 2018 until 31 December 2022. The first tranche to vest will be equal to ten per cent. of the participant's C Share entitlement and thereafter will be equal to 22.5 per cent. of the participant's C Share entitlement over the following four years. A participant may choose to roll each tranche of C Shares into the next year provided that no rollover is permitted after the final vesting date (March 2023). If a participating employee either leaves employment with the Group or commits a performance breach (broadly conduct detrimental to the business and reputation of the Group), the Group is entitled to buy back the relevant C Shares at cost.

The C Share Growth Scheme has been considered and approved by the Remuneration Committee (Lisa Gordon acting as Chair of the Committee).

Dividend

The Board is pleased to declare an interim dividend of 1.9 pence per share (2017: 1.5 pence). The interim dividend will be payable on 12 October 2018 to shareholders on the register at 14 September 2018. The ex-dividend date is 13 September 2018.  

 Consolidated statement of comprehensive income

		Unaudited six months to 30 June 2018	Unaudited six months to 30 June 2017
	Note	£	£
Revenue		9,729,550	6,290,311
Operating expenses		(5,874,284)	(3,876,442)
Underlying operating profit		4,103,532	3,173,742
Cost associated with the IPO		-	(612,873)
Non-recurring property related costs		(165,000)	-
Share-based payments		(83,266)	(147,000)
Operating profit		3,855,266	2,413,869
Finance income		4,339	-
Finance costs		-	(32,626)
Profit before taxation		3,859,605	2,381,243
Taxation		(705,363)	(528,452)
Profit and total comprehensive income for the period
		3,154,242	1,852,791
Profit for the year attributable to:
Equity owners of the parent		3,055,534	1,852,791
Non-controlling interests		98,708	-
		3,154,242	1,852,791
Earnings per share attributable to equity owners of the parent (pence per share)
- basic	3	9.2p	6.3p
- diluted	3	9.2p	6.3p
- underlying basic	3	9.8p	8.6p
- underlying diluted	3	9.8p	8.6p

Consolidated statement of financial position

		Unaudited as at	Unaudited as at	Audited
		30 June 2018	30 June 2017	31 Dec 2017
	Note	£	£	£
Non-current assets
Intangible assets		358,414	65,453	124,720
Property, plant and equipment		251,875	168,981	197,025
Total non-current assets		610,289	234,434	321,745
Current assets
Trade and other receivables	5	23,475,067	16,294,751	16,824,511
Cash and cash equivalents	6	17,537,568	11,777,551	13,073,132
Other cash balances	6	1,840,123	741,590	1,571,475
Total current assets		42,852,758	28,813,892	31,469,118
Total assets		43,463,047	29,048,326	31,790,863
Equity
Share capital	8	66,655	65,524	65,524
Share premium account		12,237,951	12,237,951	12,237,951
Capital redemption reserve		3,701	3,701	3,701
Merger reserve		666,529	666,529	666,529
Retained earnings		11,071,705	6,696,060	9,081,374
Total equity attributable to equity holders of the Company		24,046,541	19,669,765	22,055,079
Non-controlling interests		98,708	-	-
Total equity		24,145,249	19,669,765	22,055,079
Current liabilities
Trade and other payables	7	18,327,594	8,810,769	8,830,511
Current tax liability		702,662	524,198	694,692
Provisions		124,000	-	110,000
Total current liabilities		19,154,256	9,334,967	9,635,203
Non-current liabilities
Deferred tax liability		55,842	43,594	20,581
Provisions		107,700	-	80,000
Total non-current liabilities		163,542	43,594	100,581
Total equity and liabilities		43,463,047	29,048,326	31,790,863

Consolidated cash flow statement

		Unaudited six months to 30 June 2018	Unaudited six months to  30 June 2017
	Note	£	£
Cash flows from operating activities
Profit before taxation		3,859,605	2,381,243
Net finance (income) / expense		(4,339)	32,626
Amortisation of intangible assets		37,288	10,172
Depreciation of property, plant and equipment		21,250	32,310
Loss on disposal of fixed assets		-	-
Share-based payment expense		69,058	147,000
Increase in provision		41,700	-
(Increase)/decrease in other receivables		(79,260)	32,022
Increase/(decrease) in other payables		3,798,151	(4,581,470)
(Increase) in derivative financial assets		(6,571,296)	(534,299)
Increase/(decrease) in derivative financial liabilities		5,698,929	(4,434,654)
(Increase)/decrease in other cash balances		(268,648)	1,179,674
Cash inflows/(outflows) from operating activities		6,602,438	(5,735,376)
Tax paid		(662,129)	(857,475)
Net cash inflows/(outflows) from operating activities		5,940,309	(6,592,851)
Cash flows from investing activities
Payments to acquire property, plant and equipment		(76,100)	(32,000)
Expenditure on internally developed intangible assets		(270,982)	(30,104)
Net cash outflows from investing activities		(347,082)	(62,104)
Cash flows from financing activities
Proceeds from borrowings		-	400,000
Repayment of borrowings		-	(1,769,425)
Dividends paid to equity owners of the parent company		(1,133,130)	-
Issue of ordinary shares by parent company		-	13,000,000
Share issue costs		-	(748,784)
Issue of ordinary shares by subsidiary		-	2,073
Net interest received/(paid)		4,339	(32,626)
Net cash outflows from financing activities		(1,128,791)	10,851,238
Increase in cash and cash equivalents in the period		4,464,436	4,196,283
Cash and cash equivalents at beginning of period		13,073,132	7,581,268
Cash and cash equivalents at end of period	6	17,537,568	11,777,551

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 31 December 2016	1,118	-	60	666,529	4,748,978	5,416,685	-			5,416,685
Profit for the period	-	-	-	-	4,396,236	4,396,236	-			4,396,236
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)
Dividends paid					(491,430)	(491,430)				(491,430)
Share-based payments	-	-	-	-	482,372	482,372	-			482,372
Balance at 31 December 2017	65,524	12,237,951	3,701	666,529	9,081,374	22,055,079	-			22,055,079
Profit for the period	-	-	-	-	3,055,534	3,055,534	98,708			3,154,242
Transactions with owners
Shares issued on vesting of share option scheme	1,131	-	-	-	(1,131)	-	-			-
Dividends paid	-	-	-	-	(1,133,130)	(1,133,130)	-			(1,133,130)
Share-based payments	-	-	-	-	69,058	69,058	-			69,058
Balance at 30 June 2018	66,655	12,237,951	3,701	666,529	11,071,705	24,046,541	98,708			24,145,249

Notes to the financial statements

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 undertakings Alpha FX Limited and Alpha FX Institutional 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 half-yearly report have been computed in accordance with IFRS applicable to interim periods, this half-yearly report does not contain sufficient information to constitute an interim financial report as that term is 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 2017 has been extracted from the audited financial statements for that year.

The Group's financial statements for the year ended 31 December 2017 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 2017 except as described below.

On 1 January 2018 the Group adopted IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers.  The adoption of these standards has had no impact on the results presented in the Interim Report.

3. Earnings per share

Basic earnings per share is calculated by dividing the profit for the period by the profit 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 items relating to non-recurring property and IPO costs and their tax effect and share based payments, which better enables comparison of financial performance in the current period with comparative periods.

	Six months	Six months
	ended	ended
	30 June 2018	30 June 2017
Underlying - basic	9.8p	8.6p
Underlying - diluted	9.8p	8.6p
Basic earnings per share	9.2p	6.3p
Diluted earnings per share	9.2p	6.3p

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

	Six months	Six months
	ended	ended
	30 June 2018	30 June 2017
	No.	No.
Basic weighted average shares	33,061,853	29,244,108
Contingently issuable shares	57,398	28,223
Diluted weighted average shares	33,119,251	29,272,331

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

	Six Months	Six Months
	ended	ended
	30 June 2018	30 June 2017
	£	£
Profit after tax for the period	3,154,242	1,852,791
Non-controlling interests	(98,708)	-
Earnings - basic and diluted	3,055,534	1,852,791
Costs associated with the IPO	-	612,873
Non-recurring property related costs	165,000	-
Tax effect	(31,350)	(88,718)
Share based payments	83,266	147,000
Deferred tax asset impact of share-based payments	(19,562)	-
Earnings - underlying	3,252,888	2,523,946

4. Dividends

	Six months	Six months
	ended	ended
	30 June 2018	30 June 2017
	£	£
Interim dividend for the year ended
31 December 2017 of 1.5p per ordinary share	-	-
Final dividend for the year ended
31 December 2017 of 3.4p per ordinary share	1,133,130	-
	1,133,130	-

The Board has recommended the payment of an interim dividend to shareholders in respect of the year ended 31 December 2018 of 1.9p per share (total £633,220). 

5. Trade and other receivables

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

	30 June 2018		30 June 2017
	£		£
Foreign currency forward and option contracts with customers	18,646,560		16,015,348
Foreign currency forward and option contracts with banking counterparties	4,445,092		192,568
Other foreign exchange forward contracts	30,140		-
Trade receivables (derivative financial asset)	23,121,792		16,207,916
Other receivables	190,570		25,316
Prepayments	162,705		61,519
	23,475,067		16,294,751

6. 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 variation margin called against out of the money trades with banking counterparties.

	30 June 2018		30 June 2017
	£		£
Cash and cash equivalents	17,537,568		11,777,551
Variation margin called by counterparties	597,533		6,638,503
Other cash balances	1,840,123		741,590
Total cash	19,975,224		19,157,644

7. Trade and other payables

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

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

	30 June 2018	30 June 2017
	£	£
Foreign currency forward and option contracts with customers	9,863,865	3,019,424
Foreign currency forward and option contracts with banking counterparties	-	-
Other foreign exchange forward contracts	-	31,220
Trade payables (derivative financial liability)	9,863,865	3,050,644
Other payables	6,958,566	5,245,625
Other taxation and social security	355,791	174,780
Accruals and deferred income	1,149,372	339,720
	18,327,594	8,810,769

8. Share capital

The following movements of share capital occurred in the 6 months to 30 June 2018.

	Ordinary	Nominal
	shares	value
	No. of shares	£
As at 1 January 2018 - shares of £0.002 each	32,761,979	65,524
Shares issued on vesting of share option scheme	565,387	1,131
As at 30 June 2018	33,327,366	66,655

9. Subsequent events 

As outlined in the Chief Executive's Report, the Group announced a C Share Growth Scheme on 5 September.

 

END

 

 

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