Alpha Fx Share Discussion Threads

[tallprawn] 14/5/2018 13:03

Assuming Liberum are working a large sell order at present - The Ask has been stuck on 510 with decent buying volume for a few days now.

[the juggler] 10/5/2018 19:22

NOTICE IS HEREBY GIVEN that the Annual General Meeting (“AGM”) of the members of the Company will be held
at the offices of Bird & Bird LLP, 12 New Fetter Lane, London EC4A 1JP, at
10.00 a.m. on 11 May 2018.


Members will be asked to consider and, if thought fit, pass the resolutions set out below. Resolutions 1 to
10 will be proposed as ordinary resolutions and Resolution 11 will be proposed as a special resolution.
ORDINARY RESOLUTIONS
1. To receive and adopt the Company’s financial statements and annual accounts for the financial year
ended 31 December 2017 together with the Directors’ report and auditors’ report on these
accounts.
2. To re-elect Morgan Tillbrook as a Director of the Company.
3. To re-elect Tim Kidd as a Director of the Company.
4. To re-elect Clive Kahn as a Director of the Company.
5. To re-elect Lisa Gordon as a Director of the Company.
6. To re-elect Henry Lisney as a Director of the Company.
7. To re-appoint BDO LLP as auditors of the Company in accordance with section 489 of the
Companies Act 2006 (the “Act”) to hold office until the conclusion of the next annual general
meeting at which the accounts of the Company are laid.
8. To authorise the Directors of the Company to determine the auditors’ remuneration for the coming
financial year.
9. To declare a final dividend for the year ended 31 December 2017 of 3.4 pence per ordinary share in
the capital of the Company.
10. That the Directors be and are hereby generally and unconditionally authorised, pursuant to section
551 of the Act, which authority shall be in addition to all existing authorities of the Directors to allot
relevant securities for the purposes of section 551 of the Act, to exercise all the powers of the
Company to allot shares in the Company and to grant rights to subscribe for or to convert any
security into such shares (all of which transactions are hereafter referred to as an allotment of
‘relevant securities’) up to an aggregate nominal amount of:
a. £22,000; and
b. (other than pursuant to paragraph (a) above) in connection with a rights issue, open offer, scrip
dividend, scheme or other pre-emptive offer to holders of Ordinary Shares where such issue,
offer, scrip dividend, scheme or other allotment is proportionate (as nearly as may be) to the
respective number of Ordinary Shares held by them on a fixed record date (but subject to such
exclusions or other arrangements as the Directors may deem necessary or expedient to deal

[ali47fish] 10/5/2018 18:07

if anyone knows hwere the agm is being held and time can you please let me know i want to attend?

[ali47fish] 10/5/2018 13:44

juggler what is the significance of the spread narrowing and what could be happening including with the update tomorrow?

[gonedown] 10/5/2018 09:04

I have a feeling something is happening here. The spread is between buy and sell ids closing. Was a 40p spread now 2p. Happy investing Gone.

[the juggler] 03/5/2018 23:28

Excellent post and advice pireric.

[pireric] 03/5/2018 21:07

My advice would be to research the hell out of this, google, read all the posts on this board et cetera :0)

I'd never invest in something until I could really well articulate a) the business model, b) why its worth the risk. Completely depends on your risk appetite. In this case, I'd also suggest that you should first seek to understand the similarities/differences between this and Record. They are somewhat different though Wexboy disagrees and thinks we should be comparing them; I disagree

Try and get a copy of a Liberum note. perhaps sign up for research tree on free trial for a month and have a scan

[pratt2] 03/5/2018 09:16

I m seriously considering investing here but I wonder if its worth the risk reward with the PE attached to it currently. Doesn't really shout 'value' at the minute but could well beat Liberum s broker forecast come next announcement (Sept?). I also fear this sector - see what happened to Record (albeit different model) ..Having said that, company does seem top notch as per Glassdoor with a very motivated work force. Moreover, Morgan Tillbrook sold his previous online business to Sky Poker, and he has a lot of skin in the game here, so I suspect after scaling this up it could be a similar end game?Any thoughts anyone - just trying to get a balanced view before I part with my cash! Thanks

[pireric] 28/4/2018 16:38

P/E is 24 on a 2018 basis. Nowhere near 35

The top line should grow 30%+ minimum over the next few years I think and it is a 50% margin business (maybe steady state is 40-45%).

The benefit of targeting SMEs is that you can get a higher take but the whole business model is by bringing FX hedging to SMEs who can't get it from a larger bank, and even if they can, they get a terrible service because they are immaterial to the bank. Jamie Oliver, Hornby, Faroe Petroleum, Holland and Barratt some of the other disclosed clients. Most names undisclosed.

Also it is not about necessarily needing to ramp clients quickly. It's also about taking more fx services within each client. They probably only have a small penetration within existing clients

[toffeeman] 28/4/2018 16:10

It's a bit of a bucket shop with more gloss than reality - not many decent sized clients (asos an exception)

They need to grow the number of clients they have (dramatically) which takes good sales expertise which I don't see in the management team.

If I am wrong and they can grow then I think the current prices is discounting this growth.

What's the P/E - 35+? - seems rich

[pireric] 28/4/2018 12:21

Feels risky Toffee; on what metrics are you thinking this is expensive

[toffeeman] 28/4/2018 09:54

I am looking to short as I believe it is expensive. - I guess we make the market

[gonedown] 28/4/2018 07:11

I think this will take off soon. All the best, Gone

[john09] 27/4/2018 07:29

Yep it did, vertically. Then sideways for a year....

[pratt2] 27/4/2018 07:03

Its gone up by more than 60% since IPO last year?

[john09] 27/4/2018 07:00

The risk is that it goes sideways for another year... which it basically just has !

[pratt2] 27/4/2018 06:45

Hello everyoneI ve been following this company and can only see positive things about it so far. What risks have you all dug out so far? Keen to get a balanced view before delving in.Many thanks.

[pireric] 26/4/2018 19:36

Good choice ;0)

[longshanks] 26/4/2018 18:59

Bought £5k for the SHANKS value added portfolio.

[pireric] 20/4/2018 19:27

Clearly some overhang in the market given the trade prices over the last few days

[pireric] 20/4/2018 18:09

Finally some movement...!

[pireric] 09/4/2018 19:11

The cleanest way to look at cash flow is to start with PAT

£4.4m

Add back exceptionals and SBC

£5.5m

Adjustments as per cash flow pre working cap(+ £0.3m)

£5.8m

We should probably ignore the working cap for now given it's very volatile and related to client trades.

minus CAPEX, -£0.2m

So normalised FCF of £5.6mn a market cap of £160m = 3.5% yield. FCFF to EV is more like 3.7-3.9%

That's pretty good given how quickly this is growing. Just need to picture where this company could be 3 years down the road. Starting the revenue number at £30m or north would not be ridiculous. Then work through what that would mean for profit and cash flow. And this starts to look very interesting as that would only be a market share of less than 2% in the UK and a tiny fraction of a percent in Europe

[wjccghcc] 09/4/2018 10:12

It looks like the balance sheet pre listing was quite different - it's not unusual as most private companies are run differently with a lot of shareholder loans etc. to maximise tax efficiency for the owners.

The test will be to check how next year's balance sheet/cashflow compare to this years and then you'll be comparing apples with apples.