Alpha Group
International plc (LON: ALPH), a provider of financial solutions for corporates
and institutions, announced 16% revenue growth in its unaudited interim results
for the first half of 2024, despite ongoing macroeconomic headwinds.
Alpha Group Sees 16%
Revenue Jump as Client Base Expands
The FTSE
250 company reported an increase in group revenue to over £64 million, up from
£55 million in the same period last year. The corporate division saw a 12% rise
in revenue to £30 million, while the institutional division grew by 15% to £33
million. This confirms the preliminary results that the company shared with investors back in July.
Underlying
profit before tax climbed 14% to £22.3 million, with organic growth (excluding
Cobase responsible for alternative banking, fund finance, and bank connectivity)
reaching 21% at £23.7 million. The company maintained a strong organic
underlying profit before tax margin of 38%.
“Our
teams have continued to deliver a strong performance with double-digit growth
across our corporate and institutional divisions, despite the challenging
market backdrop, reflecting the strength of our diversified model and the
rewards of our investments to date,” Alpha Group’s CEO, Morgan Tillbrook,
commented on the results.
The
company’s average client balances increased by 11% to £2.1 billion,
contributing to a net treasury income of £42 million. This boosted total income
by 19% to £107 million compared to £90 million in H1 2023.
Alpha Group
also reported strong client growth, with corporate FX risk management (FXRM)
client numbers up 9% to 941 and institutional FXRM clients increasing by 19% to
271. The company’s alternative banking accounts in the institutional sector saw
a significant 31% jump to 7,030.
“Moving
into H2, we expect macro conditions to remain challenging, however, have
continued to deliver strong results in July and August. We therefore have
reasonable confidence that we are on track to deliver full-year results in line
with expectations,” Tillbrook forecasted.
The company
announced a proposed interim dividend of 4.2 pence per share, up from 3.7 pence
in H1 2023. Additionally, Alpha Group completed a £20 million share buyback in
June 2024 and initiated a further buyback of up to £20 million.
Alpha
Group’s performance comes on the heels of its inclusion in the FTSE 250 index
in June, following its successful listing on the Premium Segment of the main market
in May.
At the end
of May, the company introduced Alpha Match, a digital service that facilitates
debt mediation. This service aims to enhance transparency and
efficiency for private capital funds seeking financing. The platform includes a
neutral database with profiles of over 290 lenders, allowing borrowers to
quickly assess their fund finance needs and identify the best lender and
conditions.
“Alpha
Match is a technological solution that instantly validates criteria across a
vast range of data points,” said Sam Marsh, the Chief Executive Officer of
institutional at Alpha Group. “We are making debt intermediation
efficient, cost-effective, and inclusive to all.”
This article was written by Damian Chmiel at www.financemagnates.com.
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