Alpha Group
International plc (LSE: ALPH), a publicly-listed financial solutions provider
for international corporates and institutions, has released its unaudited interim
report for the first half of 2023. The report confirmed overall revenue of £55
million which was initially revealed in the company’s trading update published
late July.
Alpha Group Reports
Revenue Boost in H1 2023
The
company’s revenue surged by 20%, reaching £55 million, compared to £46 million
in the first half of 2022. This growth was accompanied by a 9% increase in
underlying profit before tax, which stood at £19.6 million. On a statutory
basis, the profit before tax skyrocketed by 194% to £52.4 million, largely due
to other operating income from interest on client balances.
Alpha Group
also reported a 35% margin in underlying profit before tax, even as it
continues its accelerated investment program. This is a slight dip from the 39%
margin reported in H1 2022. Basic earnings per share increased by 163% to 87.8
pence, although it decreased by 2% on an underlying basis due to increased UK
corporation tax rates.
“Whilst we
are mindful of macro headwinds, we have proven in H1 that we can grow strongly
despite these, given the resilience and momentum within our business,” Alpha
Group commented in the interim report.
This
confirms the results that the company published in its July trading update. At
that time, it reported that June was a record month in terms of revenue
generated.
Operational Highlights and
Future Outlook
The
company’s FX Risk Management sector saw a 21% revenue increase to £39 million,
while its Alternative Banking revenue rose by 17% to £16 million. The number of
FX Risk Management clients grew by 12%, and the average revenue per client
increased by 6%. Alpha Group also expanded its operational footprint by launching a Fund Finance offering and the proposed acquisition of Cobase, a
leading provider of bank connectivity technology.
The
company’s headcount increased to 430, and it plans to open a second office in
Paddington focused on the institutional market. Alpha Group remains optimistic
about its future, citing its strategic diversification and strong performance
as reasons for confidence despite ongoing macroeconomic challenges.
“Moving
into H2, macro headwinds are likely to remain, however as a result of the
strategic diversification of our business, and our performance to date, we
remain confident in delivering full-year results in line with our expectations,”
Alpha Group added.
The company
also announced a proposed interim dividend of 3.7 pence per share, up from 3.4
pence in H1 2022, signaling its stronger cash and liquidity position, which
increased by 25% over six months to over £142 million.
Almost a year ago, the organization formally declared that Tim Powell has joined its ranks.
Powell has assumed the key positions of Chief Financial Officer (CFO) and Board
Executive Director.
This article was written by Damian Chmiel at www.financemagnates.com.
