Alpha Group International plc (LSE: ALPH), a publicly-listed financial solutions provider for international corporates and institutions, has released its unaudited interim report for H1 2023. The report confirmed overall revenue of £55 million which was initially revealed in the company’s trading update published in late July.

Alpha Group Reports Revenue Boost in H1 2023

The company's revenue surged 20%, reaching £55 million, compared to £46 million in the first half of 2022. This growth was accompanied by an increase of 9% in underlying profit before tax, which stood at £19.6 million. On a statutory basis, the profit before tax skyrocketed 194% to £52.4 million, which is largely due to other operating income from interest on client balances.

Alpha Group also reported a 35% margin in underlying profit before tax, even as it continues its accelerated investment program. This is a slight dip from the 39% margin reported in H1 2022. Basic earnings per share increased 163% to 87.8 pence, although it decreased 2% on an underlying basis due to increased UK corporation tax rates.

“Whilst we are mindful of macro headwinds, we have proven in H1 that we can grow strongly despite these, given the resilience and momentum within our business,” Alpha Group commented in the interim report.

This confirms the results that the company published in its July trading update. At that time, it reported that June was a record month in terms of revenue generated.

Operational Highlights and Future Outlook

The company's FX Risk Management sector saw a revenue increase of 21% to £39 million, while its Alternative Banking revenue rose 17% to £16 million. The number of FX Risk Management clients grew 12%, and the average revenue per client increased 6%. Alpha Group also expanded its operational footprint by launching a Fund Finance offering and the proposed acquisition of Cobase, a leading provider of bank connectivity technology.

The company's headcount increased to 430, and it plans to open a second office in Paddington focused on the institutional market. Alpha Group remains optimistic about its future, citing its strategic diversification and strong performance as reasons for confidence despite ongoing macroeconomic challenges.

“Moving into H2, macro headwinds are likely to remain, however as a result of the strategic diversification of our business, and our performance to date, we remain confident in delivering full-year results in line with our expectations,” Alpha Group added.

The company additionally announced a proposed interim dividend of 3.7 pence per share. This is up from 3.4 pence in H1 2022, signaling its stronger cash and liquidity position, which increased 25% over six months to over £142 million.

Almost a year ago, the organization formally declared that Tim Powell had joined its ranks. Powell has assumed the key positions of Chief Financial Officer (CFO) and Board Executive Director.