Alpha Financial Markets: Consultancy sees trading boost despite ‘challenging market conditions’

Alpha Financial Markets Consultancy, which offers professional services to the financial services industry, has reported improved trading in recent months after “challenging market conditions” dragged on performance at the start of 2024.

In a stock market update on Thursday, the AIM-listed firm said it expected to deliver net fee income growth of around three per cent against the previous financial year. This figure compares with its expectation of up to five per cent year-on-year growth announced in February.

Alpha FMC still expects to deliver adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of between £42m and £43m at a slightly improved margin over the first half of the financial year.

The company said the global consulting market had seen “a more competitive environment” during the period “with a longer sales cycle remaining evident and supply & demand dynamics continuing to rebalance”.

It was previously announced that trading was slower than planned in January. On Thursday, it added that performance had improved through the rest of the quarter “with overall consultant utilisation at close to target levels in March”.

Alpha FMC’s shares rose 6.6 per cent in London following the news. Its stock price is down 15.9 per cent so far this year.

Chief executive Luc Baqué commented: “As noted last in February, challenging market conditions remain and the market environment continues to rebalance supply & demand. However, it is encouraging to see some improvement in market conditions and increased sales wins in recent months and going into FY 25.

“With the group’s ongoing strong pipeline, leading expertise, strong propositions and multiple growth opportunities, we remain well positioned for future growth.”

Alpha FMC is due to report its full-year results for the year to 31 March 2024 on 20 June.