REG - Alpha Growth PLC - Unaudited Interim 2024 Annual Financial Report
25/03/2025 07:00
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RNS Number : 9556B Alpha Growth PLC 25 March 2025
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK
VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH
LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED. ON
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
Alpha Growth plc
Unaudited interim report for the twelve-month period ended
31 December 2024
The Board of Alpha Growth plc (LSE: ALGW and OTCQB: ALPGF), a leading
financial services specialist in life insurance-linked wealth and asset
management, is pleased to announce its unaudited interim results for the
twelve month period ended 31 December 2024.
Chairman's Statement
PERIOD ENDED 31 DECEMBER 2024
The key highlights during the period were as follows:
· 28% increase in revenues compared to equivalent prior period;
· Profit before taxation of £0.97m (£1.49m loss before taxation for
the twelve months ended 31 December 2023) helped by one-off adjustments;
· Integration projects beginning to bear fruit as the Group achieves
break-even on an operating basis for the first time;
· Assets in insurance businesses continuing to hold up whilst a number
of new insurance products are primed for launch;
· Managed assets in the fund management business, now approaching $30
million and close to reaching an inflexion point which would see significantly
improved cash flows;
· Acquisition of insurance manager completed with aggressive growth
plans already in place which include assisting in launching the Group's new
insurance products.
The Group is now starting to see the benefits of the synergies between its
different businesses and the Board believe there is significant scope for
further improvements, many of which we have been working on in the reporting
period. The overall strategy of combining complementary and supplementary
businesses in the life insurance linked wealth/asset management business are
showing the merits of the business plan. The completion of the acquisition of
Jeometri Insurance Managers (Guernsey) Limited ("JIM") in September has
already led to some exciting opportunities. Following JIM's acquisition, the
Group immediately expanded the team which has since been heavily involved in
designing new products for the Group's two life assurance subsidiaries, as
well as starting to reduce overheads in Alpha International Life Assurance
Company (Guernsey) Ltd by bringing a number of previously outsourced
administrative functions in-house.
The team at Alpha Growth Management LLC ("AGM") has also been expanded with a
greatly enhanced website and marketing presence for the products they manage.
Up until now AGM has been a significant drag on the Group's resources as the
expense cap on AGM's main product has resulted in the Group paying money into
the product. The AUM has risen almost fourfold since December 2023 and a
further doubling will enable the AGM to be able to start releasing back the
expense cap to the Group, which is expected to result in a significant cash
flow benefit. Whilst the growth of AGM's business has been slower than we
would have liked, we now believe that AGM has the products and team in place
to reward the patience shown.
During the period under review our former non-executive Director, Neil
Warrender, took on a new role as Chief Financial Officer ("CFO") with our
independent Director Lynne Martel taking over as Chair of the Audit Committee.
Our CFO has been busy improving the financial reporting to management. These
improvements are partly reflected in the improved profitability compared to
the same period last year but are also expected to result in improved cash
flows into the insurance businesses.
As previously announced the Board has decided that the next stage in its M
& A strategy is best achieved off market and that the Company's shares
will cease to be listed from 8am on 15(th) April. We are very grateful for the
response from shareholders who have indicated their continuing support for the
Board. We hope these results give shareholders faith that the Board's
long-term strategy is beginning to bear fruit. The Directors plan to relist
the Company at the earliest opportunity.
Our strategy continues to insulate us from a lot of the volatility in capital
markets. The Directors firmly believe that the Group's value creation strategy
is on the right path and that the upcoming twelve months will see a
significant growth in AUM, with a return to the market.
I would like to take this opportunity to thank the shareholders for their
continued support as we build Alpha Growth into a unique and significant
organisation within its sector.
Gobind Sahney
Chairman
24 March 2025
For more information, please visit www.algwplc.com or contact the following:
Alpha Growth plc +44 (0) 20 3959 8600
Gobind Sahney, Executive Chairman info@algwplc.com (mailto:info@algwplc.com)
+44 (0) 20 3328 5656
Allenby Capital Limited
Amrit Nahal (Sales and Corporate Broking)
Nick Athanas / Piers Shimwell (Corporate Finance)
ir@algwplc.com (mailto:ir@algwplc.com)
UK Investor Relations - Mark Treharne
RESULTS FOR THE PERIOD
INTERIM PERIOD ENDED 31 DECEMBER 2024
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 are detailed on page 15 and 16 of the Annual Report and Financial
Statements for the year ended 31 December 2023, 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 three months of the
financial year.
Gobind Sahney
Director
24 March 2025
Alpha Growth plc
CONSOLIDATED Statement of comprehensive income
INTERIM period ENDED 31 DECEMBER 2024
(Unaudited) (Audited)
12 months 12 months
Ended Ended
31.12.2024 31.12.2023
Notes £ £
Continuing operations
Revenue from Owned Insurance Companies 5,248,568 4,731,056
Revenue from Contracts with Clients 629,753 449,415
Other income 18,059 26,314
Total revenue 5,896,380 5,206,785
Amortisation of intangible assets (102,744) (52,931)
Interest expense and investment costs (7,004) (21,422)
Expenses in managing owned insurance companies (2,414,730) (2,813,214)
Operating expenses (2,402,883) (3,810,655)
Profit/(Loss) before taxation 969,019 (1,491,437)
Taxation 58,125 135,182
Profit/(Loss) for the period 1,027,144 (1,356,255)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Exchange differences on foreign operations 38,281 10,436
Total comprehensive income 1,065,425 (1,345,819)
Attributable to:
Owners of the Company 1,066,688 (1,335,239)
Non-controlling Interests (1,263) (10,580)
1,065,425 (1,345,819)
Earnings / (loss) per share from continuing
operations attributable to the equity owners
Basic earnings / (loss) per share (pence) 3 0.2p (0.2p)
Fully diluted earnings / (loss) per share (pence) 3 0.2p (0.2p)
Alpha Growth plc
CONSOLIDATED Statement of Financial Position
AS AT 31 DECEMBER 2024
(Unaudited) (Audited)
As at As at
31.12.2024 31.12.2023
£ £
Assets
Cash and cash equivalents 4,829,896 7,420,418
Short term investments 378,910 360,430
Trade and other receivables 15,757,265 13,928,139
Loans to policyholders 12,679,457 10,178,506
Deferred tax asset 696,314 617,887
Right of use assets - 143,422
Tangible fixed assets 106,879 -
Intangible assets 1,880,459 1,488,520
36,329,180 34,137,322
Assets backing unit-linked and contractual liabilities
Cash and cash equivalents - assets backing 2,686,274 10,950,357
Financial assets 435,028,346 423,770,659
437,714,620 434,721,016
Total assets 474,043,800 468,858,338
Liabilities
Trade and other payables 3,295,814 5,375,795
Income tax payable - -
Policy claims payable 12,871,025 12,705,096
Short term loans 12,675,679 10,174,784
Lease liabilities 105,859 170,386
Provisions 305,467 -
29,253,844 28,426,061
Unit-linked and contractual liabilities
Unit-linked liabilities 430,950,323 427,809,449
Structured settlements 7,095,419 6,911,565
438,045,742 434,721,014
Total liabilities 467,299,586 463,147,075
Net Assets 6,744,214 5,711,263
Total Equity 6,744,214 5,711,263
Company number: 09734404
Alpha Growth plc
CONSOLIDATED Statement of Changes in Equity
INTERIM period ENDED 31 DECEMBER 2024
Share Capital Share Premium Option Reserve Share-based payment reserve Foreign Exchange reserve Retained Deficit Total Attributable to Shareholders Non-Controlling Interests Total
£ £ £ £ £ £ £ £ £
Balance at 1 January 2023 431,887 5,388,152 815,474 113,390 182,748 (590,734) 6,340,917 282,098 6,623,015
Loss for the year - - - - - (1,345,675) (1,345,675) (10,580) (1,356,255)
Foreign exchange loss on conversion of subsidiary - - - - (67,287) - (67,287) 77,723 10,436
Total comprehensive loss for the year - - - - (67,287) (1,345,675) (1,412,962) 67,143 (1,345,819)
Share based payments 4,442 104,374 - - - - 108,816 - 108,816
Share issue costs - (30,610) - - - - (30,610) - (30,610)
Employee share options expired - - (153,561) - - 153,561 - - -
Exercise of warrants 18,750 469,640 - (113,390) - - 375,000 - 375,000
Acquisition of non-controlling interests 12,696 317,406 - - - - 330,102 (349,241) (19,139)
Balance at 31 December 2023 467,775 6,248,962 661,913 - 115,461 (1,782,848) 5,711,263 - 5,711,263
Profit/(loss) for the year - - - - - 1,028,407 1,028,407 (1,263) 1,027,144
Foreign exchange loss on conversion of subsidiary - - - - 38,281 - 38,281 - 38,281
Total comprehensive profit/(loss) for the year - - - - 38,281 1,028,407 1,066,688 (1,263) 1,065,425
Share based payments - - - - - - - - -
Share issue costs - - - - - - - - -
Employee share options expired - - (45,369) - - 45,369 - - -
Exercise of warrants - - - - - - - - -
Non-controlling interests arising on acquisition - - - - - - - (32,474) (32,474)
Balance at 31 December 2024 467,775 6,248,962 616,544 - 153,742 (709,072) 6,777,951 (33,737) 6,744,214
Alpha Growth plc
CONSOLIDATED Statement of Cash Flows
INTERIM PERIOD ENDED 31 DECEMBER 2024
(Unaudited) (Audited)
12 months 12 months
Ended Ended
31.12.2024 31.12.2023
£ £
OPERATING ACTIVITIES
Profit/(Loss) for the period before interest and taxation 957,964 (1,496,329)
Adjusted for:
Services settled by way of payment in shares/options - 108,816
Amortisation of intangible assets and right of use assets 78,535 64,430
Gain on disposal of sublease - (147,805)
Other non-cash movements 365,478 (451,301)
Operating cash inflow /(outflow) before movements in working capital: 1,401,977 (1,922,189)
(Increase) in trade and other receivables (1,681,316) (121,410)
(Decrease)/increase in trade and other payables (1,817,860) 910,701
(Decrease)/increase in short term loans (565,403) 179
Increase in policy claims 165,929 445,096
(Increase) in short term investments (18,480) (14,594)
(Increase) in financial assets backing unit-linked liabilities (11,257,687) (9,723,695)
Increase in unit linked liabilities and structured settlements 2,993,606 3,215,859
Net cash outflow from operating activities (10,779,234) (7,210,053)
INVESTING ACTIVITIES
Cash acquired on purchase of subsidiary 91,683 -
Acquisition of subsidiary (23,340) -
Net cash inflow/(outflow) from investing activities 68,343 -
FINANCING ACTIVITIES
Repayment of leasing liabilities (78,864) (68,097)
Sublease of premises including interest 26,055 171,439
Interest paid on leasing liabilities and loans - (31,422)
Purchase of fixed assets (103,647) -
Loan finance - (350,000)
Other interest received 12,741 23,147
Net proceeds from issuance of shares net of issue costs - 344,390
Net cash (outflow)/inflow from financing activities (143,715) 89,457
Net (decrease) in cash and cash equivalents (10,854,606) (7,120,596)
Cash and cash equivalents at beginning of period 18,370,775 25,491,371
Cash and cash equivalents at end of period 7,516,170 18,370,775
Cash and cash equivalents at end of period consists of:
Cash and cash equivalents presented within assets 4,829,896 7,420,418
Cash and cash equivalents presented within assets backing unit-linked 2,686,274 10,950,357
liabilities
Cash and cash equivalents at end of period 7,516,170 18,370,775
Alpha Growth plc
Notes to the Financial Statements
interim results to 31 December 2024
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 management of life insurance
companies and asset managers which complement each other and provide a
platform for life insurance linked wealth and asset management.
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 24
March 2025. Copies of this interim report will be made available on the
Company's website at www.algwplc.com (http://www.algwplc.com) .
These condensed interim financial statements for the twelve months ended 31
December 2024 are unaudited and do not constitute fully prepared statutory
accounts. The comparative figures for the 12 month period ended 31 December
2023 are extracted from the 2023 audited financial statements. The independent
auditor's report on the 2023 financial statements contained a disclaimer of
opinion.
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 Directors have a reasonable expectation that the Group has sufficient cash
and liquid reserves 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.
3. EARNINGS / (LOSS) per Share
The basic earnings / (loss) 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 30
June 2024 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.
31.12.2024 31.12.2023
£ £
Profit/(loss) for the period from continuing operations: 1,027,144 (1,356,255)
Weighted average number of ordinary shares in issue for basic earnings 467,775,068 458,046,069
Fully diluted average number of shares in issue 467,775,068 458,046,069
Basic earnings/(loss) per share 0.2p (0.2)p
Fully diluted earnings/(loss) per share 0.2p (0.2)p
4. Share capital AND SHARE PREMIUM
Ordinary shares of £0.001 each Share capital Share premium
Number £ £
At 1 January 2024 & 31 December 2024 467,775,068 467,775 6,248,962
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