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We're giving Alpha another chance to deliver despite disappointing second-half performance

Alpha Financial Markets Consulting (AFM:AIM) 231p

Loss to date: 2.1%

Original entry point: Buy at 236p, 7 February 2019

Full year results from Alpha Financial Markets Consulting (AFM:AIM) show the business is still growing at a decent clip.

Revenue for the 12 months to 31 March was up 15% to £76m and group operating profit expanded by 47% to £12.6m, all due to organic growth.

Growth softened in the second half due to a combination of the US business consolidating its position, after doubling revenue the previous year, and some hesitation by clients to sign off on projects with the Brexit cliff-edge looming.

However trading since 1 April has been robust across all its markets. A new office in Zurich is servicing German-speaking clients, taking Alpha to 10 offices globally, while the US business has been beefed up with the appointment of two more senior directors to exploit what it calls a ‘significant opportunity for growth’.

Alpha has also announced the acquisition of Axxsys which extends its capabilities in portfolio management systems and is immediately earnings-accretive.

SHARES SAYS: Growth last year was somewhat slower than we anticipated but with greater geographical reach, thanks partly to the Axxsys deal, Alpha should deliver this year. Hang on to the shares for now.

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