RNS Number : 3373E
Alpha Growth PLC
17 September 2024
 

 

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 six month period ended

 

30 June 2024

 

The Board of Alpha Growth plc (LSE: ALGW and OTCQB: ALPGF), a leading financial services specialist in life insurance-linked wealth and esoteric asset management, is pleased to announce its unaudited interim results for the six month period ended 30 June 2024.

 


Chairman's Statement

PERIOD ENDED 30 JUNE 2024

 

Key Highlights for the Period:

·      Revenue Growth: Achieved a 12% increase in revenues compared to the same period last year.

·      Significant move towards profitability: Reduced our loss before taxation to £0.14 million for the six months ended 30 June 2024, down from £0.42 million in the same period of 2023.

·      Progress in Integration: Integration projects are starting to yield positive results, bringing the Group closer to achieving operating breakeven.

·      Expansion and Innovation: Successfully enhanced assets within our insurance businesses and developed a new insurance product which is now ready for launch.

The Group is beginning to see the benefits of synergies across its diverse businesses and is excited to realize the full impact of our strategic initiatives as move forward. The Board is optimistic about achieving further substantial financial improvements and expects additional positive results from current projects, including the recent acquisition of Jeometri Insurance Managers (Guernsey) Limited, finalised in September 2024.

The Jeometri acquisition is expected to deliver significant opportunities for the Group, with the Jeometri team having already providing input in developing new products for Alpha International Life Assurance Company (Guernsey) Ltd ("AILAC"), which we anticipate will be highly attractive to the market.

We expect continued improvement in our cash flows and do not foresee the need for a share placement, unless it is for a strategic acquisition which will deliver material growth and which is significantly value and share price accretive.

Our buy-and-build strategy remains a priority and we are actively exploring additional acquisitions that complement and enhance our existing operations, and which will materially advance our plan to be managing over $2bn of AUM in 2025.

Whilst the Group has been advancing discussions with acquisition targets there can be no guarantee that these acquisitions will complete. The Directors however are confident that our existing strategy and value creation approach will ultimately be reflected in our share price.

I would like to express my gratitude to our shareholders for their continued support as we advance Alpha Growth into a leading organization in its sector.

Gobind Sahney

Chairman

17 September 2024

 

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

 

Allenby Capital Limited

+44 (0) 20 3328 5656

Amrit Nahal (Sales and Corporate Broking)


Nick Athanas / Piers Shimwell (Corporate Finance)


 

UK Investor Relations - Mark Treharne

ir@algwplc.com

RESULTS FOR THE PERIOD

INTERIM PERIOD ENDED 30 June 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. The Board considers that these remain a current reflection of the risks and uncertainties facing the business for the remaining six months of the financial year.

 

Gobind Sahney

Director

17 September 2024



 

Alpha Growth plc

 

CONSOLIDATED Statement of comprehensive income

INTERIM period ENDED 30 june 2024

 



(Unaudited)

(Unaudited)

(Audited)



Six months

Six months

12 months



Ended

Ended

Ended



30.6.2024

30.6.2023

31.12.2023


Notes

 £

£

£




Restated


Continuing operations


 



Revenue from Owned Insurance Companies


2,605,527

2,222,909

4,731,056

Revenue from Contracts with Clients


199,987

275,801

449,415

Other income


3,684

2,121

26,314



 



Total revenue

 

2,809,198

2,500,831

5,206,785






Amortisation of intangible assets


(51,496)

(29,620)

(52,931)

Interest expense and investment costs


(3,959)

(15,095)

(21,422)

Expenses in managing owned insurance companies


(1,274,954)

(1,240,409)

(2,813,214)

Operating expenses


(1,622,239)

(1,637,643)

(3,810,655)



 



(Loss) before taxation

 

(143,450)

(421,936)

(1,491,437)

Taxation


27,523

31,156

135,182








 



Loss for the period

 

(115,927)

(390,780)

(1,356,255)






Other comprehensive income


 



Items that may be reclassified subsequently to profit or loss:





Exchange differences on foreign operations


18,734

(76,650)

10,436








 



Total comprehensive income

 

(97,193)

(467,430)

(1,345,819)






Attributable to:





Owners of the Company


(97,193)

(456,850)

(1,335,239)

Non-controlling Interests


-

(10,580)

(10,580)



(97,193)

(467,430)

(1,345,819)






Earnings / (loss) per share from continuing

 




operations attributable to the equity owners

 









Basic (loss)/earnings  per share (pence)

3

(0.02p)

(0.1p)

(0.2p)






Fully diluted (loss)/earnings per share (pence)

3

(0.02p)

(0.1p)

(0.2p)



 

 


 

 

 

 



 

Alpha Growth plc

 

CONSOLIDATED Statement of Financial Position

AS AT 30 june 2024

 



(Unaudited)

(Unaudited)

(Audited)



As at

As at

As at



30.6.2024

30.6.2023

31.12.2023



£

£

£




Restated


Assets

 




Cash and cash equivalents


4,537,657

5,050,071

7,420,418

Short term investments


363,819

337,913

360,430

Trade and other receivables


2,245,220

4,297,140

13,928,139

Loans to policyholders


10,571,396

6,653,367

10,178,506

Deferred tax asset


659,004

521,539

617,887

Right of use assets


-

-

143,422

Tangible fixed assets


39,545

-


Intangible assets


1,447,100

1,525,542

1,488,520






 


19,863,741

18,385,570

34,137,322






Assets backing unit-linked and contractual liabilities

 




Cash and cash equivalents - assets backing


2,328,343

8,460,707

10,950,357

Financial assets


450,034,659

417,550,206

423,770,659



452,363,002

426,010,913

434,721,016

 


 



Total assets


472,226,743

444,396,483

468,858,338






Liabilities

 




Trade and other payables


896,303

2,003,032

5,375,795

Income tax payable


-

1,546

-

Policy claims payable


2,320,695

2,314,818

12,705,096

Short term loans


10,567,648

6,649,624

10,174,784

Lease liabilities


139,272

213,188

170,386

Provisions


325,753

431,808

-






 


14,249,671

11,614,016

28,426,061






Unit-linked and contractual liabilities

 




Unit-linked liabilities


445,259,848

418,919,671

427,809,449

Structured settlements


7,103,154

7,091,242

6,911,565



452,363,002

426,010,913

434,721,014

 


 



Total liabilities


466,612,673

437,624,929

463,147,075






Net Assets


5,614,070

6,771,554

5,711,263






Total Equity


5,614,070

6,771,554

5,711,263

 

 

Company number: 09734404


 

Alpha Growth plc

 

CONSOLIDATED Statement of Changes in Equity

INTERIM period ENDED 30 june 2024


Share

 

Share

 

Option

 

Share-based

 

Foreign

 

Retained

 

Total

 

Non-

 

Total

 

Capital

 

 Premium

 

Reserve

 

Payment

 

Exchange

 

Deficit

 

Attributable to

 

Controlling

 









Reserve

 

Reserve

 



Shareholders

 

Interests

 



£


£


£


£


£


£


£


£


£

AS AT 31 DECEMBER 2022 as previously reported

431,887

 

5,388,152

 

815,474

 

113,390

 

182,748

 

(505,314)

 

6,426,337

 

282,098

 

6,708,435

Restatement to reflect elimination of insurance and reinsurance reserves

-

-

-

-

-

(85,420)

(85,420)

-

(85,420)

AS AT 31 DECEMBER 2022 restated

431,887

 

5,388,152

 

815,474

 

113,390

 

182,748

 

(590,734)

 

6,340,917

 

282,098

 

6,623,015

Loss for the period











(380,200)


(380,200)


(10,580)


(390,780)

Foreign exchange gain on conversion of subsidiary

-


-


-


-


(57,891)


-


(57,891)


(18,759)


(76,650)

Total comprehensive income for the period

-


-


-


-


(57,891)


(380,200)


(438,091)


(29,339)


(467,430)

Shares issued

35,888


860,810


-


-


-


-


896,698


-


896,698

Employee share options expired

-


-


(145,526)


-


-


145,526


-


-


-

Exercise of warrrants

-


-


-


(113,390)


-


-


(113,390)


-


(113,390)

Acquisition of non-controlling interests

-


-


-


-


-


-


-


(252,759)


(252,759)



















AS AT 30 JUNE 2023

467,775

 

6,248,962

 

669,948

 

-

 

124,857

 

(825,408)

 

6,686,134

 

-

 

6,686,134

Profit for the period

-


-


-


-


-


(965,475)


(965,475)


-


(965,475)

Foreign exchange loss on conversion of subsidiary

-


-


-


-


(9,396)


-


(9,396)


96,482


87,086

Total comprehensive income for the period

-


-


-


-


(9,396)


(965,475)


(974,871)


96,482


(878,389)

Employee share options expired

-


-


(8,035)


-


-


8,035


-


-


-

Acquisition of non-controlling interests













-


(96,482)


(96,482)



















AS AT 31 DECEMBER 2023

467,775

 

6,248,962

 

661,913

 

-

 

115,461

 

(1,782,848)

 

5,711,263

 

-

 

5,711,263

Loss for the period

-


-


-


-


-


(115,927)


(115,927)


-


(115,927)

Foreign exchange gain on conversion of subsidiary

-


-


-


-


18,734


-


18,734


-


18,734

Total comprehensive income for the period

-


-


-


-


18,734


(115,927)


(97,193)


-


(97,193)



















AS AT 30 JUNE  2024

467,775

 

6,248,962

 

661,913

 

-

 

134,195

 

(1,898,775)

 

5,614,070

 

-

 

5,614,070

 

 

 

 


 

Alpha Growth plc

 

CONSOLIDATED Statement of Cash Flows

INTERIM PERIOD ENDED 30 june 2024


(Unaudited)

(Unaudited)

(Audited)


6 months

6 months

12 months


Ended

 Ended

Ended


30.6.2024

30.6.2023

31.12.2023


£

£

£



Restated


OPERATING ACTIVITIES

 



Loss for the period before interest and taxation

(143,175)

(408,962)

(1,496,329)

Adjusted for:




Services settled by way of payment in shares/options

-

108,816

108,816

Amortisation of intangible assets and right of use assets

29,742

29,620

64,430

Gain on disposal of sublease

-

(45,156)

(147,805)

Other non-cash movements

365,533

40,068

(451,301)





Operating cash outflows before movements in working capital:

252,100

(275,614)

(1,922,189)





(Increase)/decrease in trade and other receivables

11,798,080

9,706,047

(121,410)

Increase/(decrease) in trade and other payables

(4,493,086)

(2,521,419)

910,701

Increase/(decrease) in short term loans

(26)

7,924

179

Increase/(decrease) in policy claims

(10,384,401)

(9,945,182)

445,096

(Increase)/decrease in short term investments

(3,389)

158

(14,594)

(Increase)/decrease in financial assets backing unit-linked liabilities

(26,264,000)

(3,503,242)

(9,723,695)

Increase/(decrease) in unit linked liabilities and structured settlements

17,641,988

(5,494,242)

3,215,859


 



Net cash used in operating activities

(11,452,734)

(12,025,570)

(7,210,053)


 



FINANCING ACTIVITIES

 



Repayment of leasing liabilities

(39,495)

(31,783)

(68,097)

Sublease of premises including interest

26,055

32,370

171,439

Interest paid on leasing liabilities and loans

-

-

(31,422)

Purchase of fixed assets

(39,545)

-

-

Loan finance

-

(300,000)

(350,000)

Other interest received

944

-

23,147

Net proceeds from issuance of shares net of issue costs

-

344,390

344,390


 



Net cash (outflow)/inflow from financing activities

(52,041)

44,977

89,457





Net (decrease)/increase in cash and cash equivalents

(11,504,775)

(11,980,593)

(7,120,596)

Cash and cash equivalents at beginning of period

18,370,775

25,491,371

25,491,371


 



Cash and cash equivalents at end of period

6,866,000

13,510,778

18,370,775





Cash and cash equivalents at end of period consists of:

 



Cash and cash equivalents presented within assets

4,537,657

5,050,071

7,420,418

Cash and cash equivalents presented within assets backing unit-linked liabilities

2,328,343

8,460,707

10,950,357


 



Cash and cash equivalents at end of period

6,866,000

13,510,778

18,370,775

 

 





 

Alpha Growth plc

 

Notes to the Financial Statements

interim results to 30 june 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 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 17 September 2024. Copies of this interim report will be made available on the Company's website at www.algwplc.com.

These condensed interim financial statements for the six months ended 30 June 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 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.

COMPARATIVE INFORMATION

The comparative information for the six month period to 30 June 2023 has been restated to make the information consistent with the audited financial statements for the year ended 31 December 2023. The restatement relates to the following areas:

·      Disaggregation of assets and liabilities in insurance businesses - the Directors' decided to present information relating to the life assurance subsidiaries on a disaggregated basis, rather than reporting two separate line items comprising total assets in insurance businesses and total liabilities in insurance businesses.

·      Restatement of sub-lease - the treatment of sub-lease has been amended to reflect the derecognition of the right of use asset and the recognition of an investment in sublease, in accordance with IFRS 16.

·      Treatment of lapsed share options - share options with passed vesting dates, previously reversed out in the Statement of comprehensive income, were restated to remain recognised in equity with a corresponding transfer within equity from share based payment reserve to retained earnings. This treatment results in a fairer presentation of the services received from the directors.

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. 


30.6.2024

30.6.2023

31.12.2023


£

£

£





Loss for the period from continuing operations:

(115,927)

(292,432)

(1,356,255)





Weighted average number of ordinary shares in issue for basic earnings

467,775,068

447,084,823

458,046,069

Fully diluted average number of shares in issue

467,775,068

447,084,823

458,046,069





Basic earnings per share

(0.02p)

(0.1p)

(0.2p)

Fully diluted earnings per share

(0.02p)

(0.1p)

(0.2p)

 

4.   Share capital AND SHARE PREMIUM


Ordinary shares of £0.001 each

 Share capital

Share premium

 

Number

£

£

 




At 1 January 2023

431,887,388

431,887

5,388,152

 




Warrant exercise

18,750,000

18,750

469,640

Share issue as payment for services

17,137,680

17,138

421,780

Costs related to warrant exercise

-

-

(30,610)





At 30 December 2023

467,775,068

467,775

6,248,962


 



At 30 June 2024

467,775,068

467,775

6,248,962

 

 

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