In a recent discussion with Proactive’s Stephen Gunnion (SG), chief executive Luc Baqué (LB) and chief financial officer John Paton (JP) of Alpha Financial Markets Consulting PLC (AIM:AFM) talked about the company’s performance, strategic market positions, and future growth prospects.
Here’s what they had to say.
SG: Can you outline Alpha’s performance expectations for the fiscal year ending March 31, 2024?
LB: Certainly. We are anticipating a net-free income growth of up to 5% for this fiscal year. This comes with an improvement in our margins from the first half of the year and utilisation levels that are nearing our targets in the second half. Although the recovery is slightly slower than we expected, we are entering the fourth quarter with a strong pipeline, which suggests an optimistic trend in sales and utilisation levels close to what we desire.
SG: How is Alpha performing across different regions, especially considering the competitive global consulting market?
JP: In North America, we’ve seen remarkable resilience. Our utilisation levels there have bounced back strongly, making it a significant strategic market for us. The UK, while facing more competitive challenges and not yet at target utilisation levels, is still entering the final quarter with a promising pipeline. Europe, particularly in the French insurance sector, and the APAC region are also showing strong performance. The APAC region, in fact, has set a new record pipeline, positioning us for a strong start to the new financial year.
SG: With the current market challenges, how does Alpha view its future growth and performance?
LB: We are optimistic. The challenges we’re facing now are seen as short-term. We forecast incremental growth, improved utilisation, and margins through FY25. With a strong pipeline, recent sales wins, and a robust balance sheet, we are confident in our medium to long-term growth prospects. Our ambition is to double the business by 2028, and we believe we are on the right track to achieve that.
SG: Given the strategic importance of different regions, how does Alpha plan to maintain or improve its market position?
JP: Our focus remains on leveraging our strengths in each region. In North America, we’ll continue to capitalise on the strong bounce-back in utilisation levels. For the UK and Europe, we’re working on addressing the competitive challenges and improving our market position through strategic initiatives and leveraging our strong pipeline. In the APAC region, we aim to build on our current momentum, driven by our record pipeline, to ensure a strong market presence and continued growth.
SG: Finally, what makes Alpha confident about achieving its ambitious goal of doubling the business by 2028?
LB: Our confidence stems from several factors: our current performance trajectory, the strategic positioning across key markets, our robust balance sheet, and the strength of our pipeline. These elements, combined with our team’s expertise and our strategic initiatives aimed at addressing market challenges, make us optimistic about our growth prospects and our ability to achieve our ambitious goal.