Alpha Group International plc (LSE: ALPH), a publicly-listed financial solutions provider for international corporates and institutions, has reported significant growth in its performance in H1 2023. The company has achieved a visible increase in revenue despite facing a challenging economic environment.
Alpha Group Publishes Trading Update
Alpha's H1 2023 saw a leap in overall revenue, climbing 20% to reach £55 million. Its FX Risk Management division experienced a boost in revenue of around 21%, attaining £39 million. The Alternative Banking branch also reported revenue growth of 17%, hitting £16 million, which soared to 32% when including the net increase in deferred revenue from account fees.
Despite a challenging economic scenario, Alpha demonstrated resilience and strong operational margins, backed by its swift investment program. Additional operating income of £33 million was driven by interest on client balances, resulting in substantial profit growth.
Their cash and liquidity situation remained solid, with adjusted net cash inflating 26% within six months, surpassing £142 million. Recently, Alpha introduced a new fund finance offering, which has already begun generating revenue. According to the newest market outlook, the current trading trends are promising, and Alpha is on course to meet its 2023 expectations.
"It is a testament to our strategy, offering, and most importantly, our team, that we have continued to grow strongly in spite of some challenging macro-economic headwinds," Morgan Tillbrook, the Chief Executive Officer at Alpha Group, said.
"I am proud that the operational progress and investments that we have continued to make during this period remain very much long-term focused."
The most recent results confirm financials from the report for 2022, where the company showed a jump in revenue of 27%. The Group's earnings came in at £98.3m, which is increasing visibly on a yearly basis.
Alpha Shows Steady Growth amid Industry Changes
Despite the market downturn, Alpha continues to experience record-breaking quarters. The Alternative Banking branch increased its account numbers by over 1,150 during H1, reaching a total of 5,350 accounts to date. Investments in compliance, client services, and technological automation have bolstered operational efficiencies, which has positioned the company for further growth.
The FX Risk Management (FXRM) division faced the challenge of reduced corporate appetite for FX hedging contracts due to macroeconomic uncertainty and shifts in inventory management. Despite this, the division recorded growth, with the revenue from spot contracts increasing by almost 50%, underlining the robustness and relevance of Alpha's service throughout various economic cycles.
FXRM delivered revenue growth of 21% in H1, with client numbers expanding from 1,047 to 1,089 during this period.
"I am confident that our prospects remain excellent, and that as macro-economic conditions improve, we remain in a great position to capitalize on the sizeable market opportunity in front of us," Tilbrook added.
Furthermore, the company has made an official announcement regarding the inclusion of Tim Powell in its team. Powell took on the crucial roles of the Chief Financial Officer (CFO) and Executive Director of the Board.
