REG - Alpha Growth PLC - Half-year Report
17/09/2024 07:00
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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 (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 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 (http://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 2,328,343 8,460,707 10,950,357
liabilities
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 (http://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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