Alpha Group International plc (LSE: ALPH), a provider of financial solutions to corporates and institutions, has announced the commencement of a new £20 million share buyback program. The decision follows the company's previous £20 million buyback program, which was successfully completed this week.
Alpha Group Launches New £20 Million Share Buyback Program
The London-based firm plans to repurchase ordinary shares of 0.2 pence each, which will be held in treasury. This move follows a review of the company's cash position by the Board, which determined that current cash balances and anticipated future cash generation support the implementation of the new buyback.
On the LSE, Alpha Group's stock shows no significant reaction to the news of a new share buyback program. As of Friday morning, the shares are trading at 2,280 pence, remaining near the peaks reached during last summer. Since the beginning of the year, Alpha Group's shares have increased by over 30%.
The company has instructed Liberum Capital Limited, its broker, to conduct the buyback program on its behalf. The program will operate within pre-set parameters, including a maximum price per share set at the higher of 105% of the average trailing 5-day mid-market closing price or the highest current independent bid for an ordinary share.
The buyback is effective immediately and will continue until the company's next Annual General Meeting or until the £20 million allocation is exhausted, whichever comes first. The program's conditions are exactly the same as those of the one that just ended this week.
Launch of Alpha Match
In May, Alpha Group introduced Alpha Match, a new digital service for mediating debt. This platform aims to streamline the financing process for private capital funds by offering a transparent and efficient solution. It includes a comprehensive database with profiles of over 290 lenders, allowing borrowers to match their funding needs with suitable lenders and terms efficiently.
This initiative is part of Alpha Group's ongoing strategy to diversify its business, a move that has already shown promising results. According to the financial report published in January 2023, Alpha Group concluded the fiscal year with revenues of £110 million, marking a 12% increase from the previous year. The company's pre-tax profits also significantly rose, surging by 140% to approximately £115 million.
