Alpha Financial Markets Consulting (AFM:AIM)

Gain to date: 52%

Original entry point: Buy at 166.5p 23 November 2017

Our advice to buy Alpha Financial Markets Consulting (AFM:AIM) looks to have paid off and with the majority of the world’s biggest asset managers as clients it shouldn’t be a surprise.

The support services group’s results on 6 June really super charged the share price and with a 65% increase in operating profit to £13.6m, a 51.5% increase in revenue to £66m and generating high levels of cash generation from ongoing activities of £11.3m its had a great maiden year on the markets.

Speaking to the company’s CEO Euan Fraser recently, the level and amount of deals his firm has been involved is truly impressive. Standard Life’s merger with Aberdeen to become Standard Life Aberdeen (SLA) is one of the deals Alpha was involved in post-merger.

In fact, most of the major consolidation in the asset management space has been aided by Alpha. Now the company is expanding its global footprint this is likely to be a growth area.

The company opened its first Asia office during the year in the ASEAN business hub that is Singapore. This means the company now has a presence in the UK, US, Europe and Asia.

Broker Panmure Gordon dubs the company ‘the diamond that can double in size’.

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