REG - Alpha Growth PLC - Half-year Report
30/09/2022 07:01
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RNS Number : 2534B Alpha Growth PLC 30 September 2022
Alpha Growth plc
Interim report for period ended
30 June 2022
Chairman's Statement
PERIOD ENDED 30 JUNE 2022
I am pleased to announce our unaudited interim financial results for the
period to 30 June 2022.
Over the first six months of this year, we continued to invest considerable
time and resources in executing our 2B plan, Alpha's ambitious plan to be
managing over $2bn of assets by 2025. As a result of this work, I'm pleased to
report that a number of key initiatives to support this plan are tracking
ahead of schedule and the Board remains confident of achieving our objectives.
The continued investment showed a growth in revenue from continuing operations
to £1,633,445 for the first six months (£1,311,840 for same period 2021) and
a loss before tax of £454,635 (£323,835 for same period 2021). As of the end
of June 2022, total assets under management (funds managed by the group plus
group owned insurance assets) were £258 million (£238 million at the same
point in 2021).
The increase in losses reflects increased marketing activity at the operating
company levels, acquisition related costs, and inflationary pressures in
regular operating expenditures.
Progress in achieving our stated objectives is promising and we still have a
significant number of wide-ranging initiatives we are working on to deliver,
which will further strengthen, scale and transform the business.
We are looking forward to shortly integrating the Guernsey acquisition
previously announced on 24(th) March therefore substantially increasing our
AUM and revenue; the roll out of our innovative and class leading interval
fund; and the further strengthening of our Board and leadership team.
We also continue to advance our build and buy strategy to ensure continued and
substantive ongoing growth of the business.
We expect our cash flow to improve, and we continue to believe that we will
not require a placing of shares, unless it is for strategic acquisition and
growth purposes.
The volatility in capital markets is continuing to cause challenges across the
market, however we continue to be confident that both our fund and insurance
business segments continue to be attractive to the sophisticated investor and
institutional marketplace that we work with.
I would like to take this opportunity to thank the shareholders for their
continued support as we build Alpha Growth into a significant organisation
within its sector.
Gobind Sahney
Chairman
29 September 2022
RESULTS FOR THE PERIOD
INTERIM PERIOD ENDED 30 June 2022
The results of the Group have been addressed above in the Chairman's
statement.
Responsibility Statement
We confirm that to the best of our knowledge:
(a) the condensed set of financial statements has been
prepared in accordance with IAS 34 'Interim Financial Reporting';
(b) the interim management report includes a fair review
of the information required by DTR 4.2.7R (indication of important events
during the first six months and description of principal risks and
uncertainties for the remaining six months of the year; and
(c) the interim management report includes a fair review
of the information required by DTR 4.2.8R (disclosure of related parties'
transactions and changes therein).
CAUTIONARY STATEMENT
This Interim Management Report (IMR) has been prepared solely to provide
additional information to shareholders to assess the Company's strategies and
the potential for those strategies to succeed. The IMR should not be relied on
by any other party or for any other purpose.
Going Concern
The Directors have a reasonable expectation that the Group has adequate
resources to continue in operation or existence for the foreseeable future
thus we continue to adopt the going concern basis in preparing these interim
financial statements. As detailed in the Chairman's statement the on-going
expected timing of transactions that the Company plans to be involved in and
generate fees from, continue as planned and therefore should benefit the Group
in the longer term.
PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties affecting the business activities of the
Group remain those detailed in the Prospectus dated 15 December 2021, a copy
of which is available on the Company website at www.algwplc.com
(http://www.algwplc.com) . The Board considers that these remain a current
reflection of the risks and uncertainties facing the business for the
remaining four months of the financial year.
Gobind Sahney
Director
29 September 2022
Alpha Growth plc
CONSOLIDATED Statement of comprehensive income
INTERIM period ENDED 30 june 2022
(Unaudited) (Unaudited) (Audited)
Six months Six months 16 months
Ended Ended Ended 31.122021
30.6.2022 30.6.2021
Notes £ £ £
Continuing operations
Revenue from Owned Insurance Companies 1,463,768 1,185,467 2,290,948
Revenue from Contracts with Clients 169,677 126,373 354,224
Total revenue 1,633.445 1,311,840 2,645,172
Cost of sales (1,285,367) (864,695) (1,892,257)
Gross Profit 348,078 447,145 752.915
Operating expenses (828,971) (799,536) (2,467,888)
Operating Loss (480,893) (352,391) (1,714,973)
Investment income and movements in DAC 33,447 28,556 27,355
Investment expense (7,189) - (8,306)
(454,635) (323,835) (1,695,924)
Loss before tax
Tax - (64,151) 29,620
(454,635) (387,986) (1.666,304)
Loss for the period
Loss per share attributable to owners of the parent company
Basic and diluted (pence per share) 3 (0.15p) (0.1p) (0.5p)
The Group has no items of other comprehensive income.
Alpha Growth plc
CONSOLIDATED Statement of Financial Position
AS AT 30 june 2022
(Unaudited) (Unaudited) (Audited)
As at As at As at 31.12.2021
30.6.2022 30.6.2021
Note £ £ £
Non-current assets
Right of use assets 258,574 296,736 262,117
Intangible assets 845,694 883,949 864,821
1,104,268 1,180,685 1,126,938
Current assets
Total assets in insurance business 214,843,900 211,141,862 209,251.676
Trade and other receivables 347,705 91,502 273,564
Cash and cash equivalents 44,479 694,692 195,523
215,236,084 211.928,056 209,720,763
Current liabilities
Total liabilities in insurance business 213,091,992 209,039,868 207,449,925
Lease liabilities 60,136 48,954 51,868
Trade and other payables 179,496 6,515 61,719
213,331,624 209,095,337 207,563,512
1,904,460 2,832,719 2,157,251
Net current assets
Non-current liabilities
Lease liabilities (211,103) (242,618) (217,241)
2,797,625 3,770,786 3,066,948
Net assets
EQUITY
Equity attributable to owners of the parent
Share capital 4 431,887 431,887 431,887
Share premium 4 5,388,152 5,563,604 5,404,313
Share based payment reserve 113,390 - 113,390
Option reserve 480,674 - 480,674
Foreign exchange reserve 201,473 - -
Retained earnings (3,902,468) (2,329,805) (3,452,925)
Minority interest 84,517 105,100 89,609
2,797,625 3,770.786 3,066,948
Total equity
Company number: 09734404
Alpha Growth plc
CONSOLIDATED Statement of Changes in Equity
INTERIM period ENDED 30 june 2022
Share capital Share premium Retained earnings Total
Other reserves Minority
Interest
AS AT 31 DECEMBER 2020 240,816 2,183,030 - (1,937,820) - 486,026
Shares issued during the period 191,071 3,608,929 - - - 3,800,000
Share issue costs - (228,355) - - - (228,355)
Minority interest arising on acquisition - - - - 101,101 101,101
Total comprehensive (loss)/profit for the period - - (391,985) (387,986)
3,999
AS AT 30 JUNE 2021 431,887 5,563,604 - (2,329,805) 105,100 3,770,786
Share issue costs - (159,291) 113,390 - - (45,901)
Employee options issued - - 480,674 - - 480,674
Total comprehensive loss for the period - - - (1,123.120) (15,491) (1,138.611)
AS AT 31 DECEMBER 2021 431,887 5,404,313 594,064 (3,452,925) 89,609 3,066.948
Share issue costs - (16,161) - - - (16,161)
Foreign exchange reserve arising on consolidation - - 201,473 - - 201,473
Total comprehensive loss for the period - - - (449,543) (5,092) (454,635)
AS AT 30 JUNE 2022 431,887 5,388,152 795,537 (3,902,468) 106,448 2,797,625
Alpha Growth plc
CONSOLIDATED Statement of Cash Flows
INTERIM PERIOD ENDED 30 june 2022
(Unaudited) (Unaudited) (Audited)
6moths Ended 6 months 16 months
30.6.2022 Ended Ended 31.12.2021
30.6.2021
£ £ £
OPERATING ACTIVITIES
Loss for the period before interest and taxation (447,446) (323,835) (1,687,618)
Adjusted for:
Share based payments - - 480,674
Amortisation of intangibles and right of use assets 22,670 19,127 72,873
(424,776) (304,708) (1.134,071)
Operating cash outflows before movements in working capital:
(Increase)/decrease in trade and other receivables (74,141) 108,483 (28,439)
Increase in assets in insurance business (5,592,224) (211,141,862) (209,022,056)
Increase/(decrease) in trade and other payables 117,777 5,515 (30,294)
Increase in liabilities in insurance business 5,642,067 209,039,868 207,449.925
(331,297) (2,292.704) (2,964,935)
Net cash used in operating activities
FINANCING ACTIVITIES
Repayment of leasing liabilities 2,130 - (27,627)
Interest on leasing liabilities (7,189) - (8,306)
Net proceeds from share issues (16,161) 3,571,645 3,954,744
(21,220) 3,571,645 3,918,811
Net cash (outflow/)inflow from financing activities
INVESTING ACTIVITIES
Foreign exchange gain on consolidation 201,473 - -
Acquisition of intangible assets - (903.075) (903,075)
Acquisition of non-controlling interest - 101,101 101,102
Net cash inflow/(outflow) from investing activities 201,473 (801,974) (801,973)
Net (decrease)/increase in cash and cash equivalents (151,044) 476,967 151,903
Cash and cash equivalents at beginning of period 195,523 217,725 43,620
44,479 694,692 195,523
Cash and cash equivalents at end of period
Alpha Growth plc
Notes to the Financial Statements
interim results to 30 june 2022
1. Organisation and Trading Activities
The company is incorporated and domiciled in England and Wales as a public
limited company and operates from its registered office 35 Berkeley Square,
Mayfair London, United Kingdom W1J 5BF
The principal activity of the Group is the provision of advice and consultancy
services to institutional investors and existing and prospective holders of
Senior Life Settlements through the management of its funds and the ownership
of life insurance companies.
2. Summary of Significant Accounting Policies
The principal accounting policies adopted and applied in the preparation of
these interim Group Financial statements are set out below.
These have been consistently applied to all the periods presented unless
otherwise stated:
Basis of accounting
These interim financial statements of Alpha Growth plc (the "Group") have been
prepared in accordance with UK adopted international accounting standards
("UK-adopted IAS") applied in accordance with the provisions of the Companies
Act 2006.
The interim financial statements have been prepared under the historical cost
convention on the basis of the accounting policies as set out in the Group's
audited annual financial statements and are presented in GBP £ the
presentational and functional currency of the Group. The Group has applied IAS
34 in the preparation of these interim financial statements.
This announcement was approved and authorised by the Board of directors on 30
August 2022. Copies of this interim report can be found on the Company's
website at www.algwplc.com (http://www.algwplc.com) .
These condensed interim financial statements for the six months ended 30 June
2022 are unaudited and do not constitute fully prepared statutory accounts.
The comparative figures for the 16 month period ended 31 December 2021 are
extracted from the 2021 audited financial statements. The independent
auditor's report on the 2021 financial statements was not qualified.
Going concern
Any consideration of the foreseeable future involves making a judgement, at a
particular point in time, about future events which are inherently uncertain.
The ability of the Group to carry out its planned business objectives is
dependent on its continuing ability to raise adequate financing from equity
investors and/or the achievement of profitable operations.
The Directors have a reasonable expectation that the Group will be able to
achieve the above in order to meet any future obligations and thus to continue
operating for the foreseeable future. For this reason, they continue to adopt
the going concern basis in preparing the Financial Statements. As detailed in
the Chairman's statement the Impact of COVID-19 has led to some delays in the
expected timing of transactions that the Company plans to be involved in and
generate fees from but has led to a greater interest in SLS assets and
therefore should benefit the Group in the longer term.
3. LOSS per Share
The basic earnings per share is based on the loss for the period divided by
the weighted average number of shares in issue during the year. The weighted
average number of ordinary shares for the Company the period ended 31 August
2021 assumes that all shares have been included in the computation based on
the weighted average number of days since issue. Since the Group has made a
loss in the current and each of the prior periods, the warrants in issue are
not dilutive.
30.6.2022 30.6.2021 31.12.2021
Loss for the period from continuing operations: 454,635 387,986 1,666,304
Weighted average number of ordinary shares in issue for basic earnings 431,887,388 352,546,425 190,901,671
Weighted average number of shares in issue for fully diluted earnings 352,546,425 354,478,424
431,887,388
BASIC AND FULLY DILUTED LOSS PER SHARE:
- from continuing and total operations (pence) 0.1 0. 1 0.5
.
4. Share capital AND SHARE PREMIUM
Ordinary shares of £0.001 each Share capital Share premium
Number £ £
At 1 January 2021 240,816 2,183,030
240,815,959
On 15 March 2021 the Company issued 187,500,000 ordinary shares of £0,001 187,500.000 187,500 3,174,855
each at a price of 2.0p per share as part of a placing
On 17 May 2021 the Company issued 3,571,429 ordinary shares of £0,001 3,571,429 3,571 46,428
each at a price of 1.4p per share following a warrant exercise
At 31 December 2021 431,887,388 431,887 5,404,313
Costs related to listing of saes issued 15 March 2021 - - (16,161)
AT 30 JUNE 2022 431,887,388 431,887 5,388,152
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