Alliance FX Capital’s New Acquisition, Financial Results and 2017 Outlook reflects the
ongoing success for our institutional focused financial trading firm.
Alliance FX Capital, Ltd. (AFXC) has hit new highs as it fully met its targets for the 2016
financial year, and believes it is ideally positioned to take advantage of new market
Thanks to the long awaited acquisition of Indonesian natural resources company,
QuantrafaxRE, Inc. (a specialist in managing mineral mining, palm oil and lumber growing and
harvesting properties), Alliance FX Capital now has a big leg-up in our drive for further
penetration of the cash commodities markets and raw materials exporting opportunities in
South East Asia.
Excluding the cost of the acquisition of QuantrafaxRE, Inc. the financial results for AFXC’s
order intake, revenue, adjusted EBIT, adjusted margin, and net income reached
unprecedented levels over 2015.
The profitability of Alliance FX Capital group rose to 9.9 percent. Free cash flow reached
EUR59 million, a figure at the upper end of our outlook range, as the company met all essential
In its outlook for 2017, AFXC expects further profitable growth in all of its core segments, Small
Cap Equities, Corporate and Government Credits. Currencies and cash delivery Raw
The Executive Board and Supervisory Board of AFXC will propose a dividend increase by late
summer 2017 at the Annual General Meeting in line with the Company’s dividend policy.
CEO Roth: “The 2016 results provide an excellent basis for a new era”
“Our very good results in 2016 form an excellent base for a new era given our recent
acquisition of QuantrafaxRE, Inc.” said the Chief Executive Officer., Gordon Roth. Gordon
continued, ‘”We have already made a great deal of progress in the integration of the new
company since the acquisition was completed last November,” he stressed. “The key objective
this year will be to continue pushing ahead with this task so we can take full advantage of the
opportunities in the rapidly growing cash commodities market and for our trading products and
equity offerings in 2017. At the same time we will continue to benefit from the strong market
growth in our core business of Small Capital Equities with Private Placements, Pre-IPOs and
market syndicated Initial Public Offerings (IPOs).
With the QuantrafaxRE results for the last two months of 2016 included, the total value of
market orders trading intake grew by 11.8 percent. Revenue increased by 9.6 percent.
Adjusted EBIT advanced by 11.3 percent and Net income rose to EUR46.1 million, an increase
of 11.3 percent.
Sustained growth for AFXC is expected in our core markets of South East Asia and
The AFXC underwriting group’s new small cap offerings rose by 7.5 percent in 2016, mainly
thanks to the sustained growth in the public and private offerings coming from the UK, China
Customer acquisition has shown particular strength in Australia, Western Europe, and now,
due to positive investor trends in China, we have exceeded those expectations The
Underwriting Group was thus able to take full advantage of the growth in the global market,
which also expanded by 7.5 percent in 2016.
The number of IPO stock buy orders worldwide was just under 183,000 with our small cap
stock issuance at 47 total offerings; beating any previous year. The Trading Group was able
to benefit from the increase in currency trading interest worldwide. New small cap offerings
growth in the local Asian markets catapulted us to the forefront of Emerging Market issuers
which already account for more than 35% percent of our total order intake.
There were major projects for new stock issuance customers, including new corporate finance
deals in Europe. North America accounted for a surprising year over year increase in these
activities. South East Asia and Australia still remain our central core growth drivers.
The AFXC Trading Group, for the first time, reports our results following our new market
segmentation strategy. In addition to Trading, our Corporate Services segment, which
comprises holding companies and other service companies that provide services such as
transaction efficiencies, securities tracking, IT consulting and HR logistics showed strong
results across all segments.
Outlook for 2017: order intake, revenue, and adjusted EBIT set to increase
In 2017, AFXC aims to build on its successful performance in 2016 and, based on the forecasts
for market growth, will achieve further increases in trading order intake, revenue, and adjusted
The 2017 target figure for consolidated revenue is in the range of EUR76 million. The adjusted
EBIT margin is predicted to increase above the 9.6 percent that was generated in 2016.
“All of our operating groups are focused on producing profits for our valued customers as well
as our stockholders as we continue our financial success into 2017.” Noted CEO, Gordon
Roth. “We have some very exciting new stock underwritings that will hit the market starting
mid-April and continuing strong, according to plan, into the summer months. Very exciting
trading opportunities are coming-up or our clients.”