TIDMALGW
RNS Number : 0885O
Alpha Growth PLC
29 September 2023
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 AMED. 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 period ended
30 June 2023
Chairman's Statement
PERIODED 30 JUNE 2023
I am pleased to announce our unaudited interim financial results
for the period to 30 June 2023.
The key highlights during the period were as follows:
-- 53% increase in revenues compared to equivalent period;
-- Net assets more than doubled compared to net assets as at June 2022;
-- Continuing progress on integrating the insurance businesses
with opportunities identified to enhance profitability;
-- Bought out the minority interests in Northstar Group
(Bermuda) Limited whilst further aligning the interests of Dan Gray
with the Group through a share-to-share exchange; and
-- Released share-based payment reserves following the expiry of
over 25 million options attributable to former directors and
employees.
The relatively small drop in losses reflects the transition and
integration costs associated with Alpha International Life
Assurance Company that are now largely resolved.
We expect our cash flow to improve, and we continue to believe
that we will not require a placing of shares, unless it is for
strategic acquisition and growth purposes.
We continue to advance our buy and build strategy to ensure
continued and substantive ongoing growth of the business. We
continue to be presented with and review potential acquisitions
that are both complementary and supplementary to its existing
businesses which will further enhance free cash flow and move us
close to executing the 2B plan. To this end, the appointment of
Jason Sutherland as a full-time executive has greatly enhanced our
ability to identify and undertake due diligence on potential
targets.
Our strategy continues to insulate us from a lot of the
volatility in capital markets although we appreciate that our share
price performance continues to disappoint. The Directors firmly
believe that the value creation strategy will feed through to the
share price as the Company looks to continue to deliver on their
stated goals.
I would like to take this opportunity to thank the shareholders
for their continued support as we build Alpha Growth into a
significant organisation within its sector.
Gobind Sahney
Chairman
29 September 2023
For more information, please visit www.algwplc.com or contact
the following:
+44 (0) 20 3959
Alpha Growth plc 8600
Gobind Sahney, Executive Chairman info@algwplc.com
+44 (0) 20 3328
Allenby Capital Limited 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 PERIODED 30 June 2023
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 remain those detailed in the Prospectus
dated 15 December 2021, 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 four months of the financial year.
Gobind Sahney
Director
29 September 2023
Alpha Growth plc
CONSOLIDATED Statement of comprehensive income
INTERIM periodED 30 june 2023
(Unaudited) (Unaudited) (Audited)
Six months Six months 12 months
Ended Ended Ended
30.6.2023 30.6.2022 31.12.2022
Notes GBP GBP GBP
Continuing operations
Revenue from Owned Insurance
Companies 2,222,909 1,463,768 3,424,875
Revenue from Contracts with
Clients 275,801 169,677 346,787
Total revenue 2,498,710 1,633,445 3,771,662
Net movement on DAC/AVIF (29,620) 33,447 (16,729)
Interest expense and investment
costs (4,673) (7,189) (27,838)
Bargain purchase - - 4,106,000
Expenses in managing owned
insurance companies (1,240,409) (1,285,367) (2,336,898)
Operating expenses (1,547,596) (828,971) (2,403,021)
Profit/(loss) before taxation (323,588) (454,635) 3,093,176
Taxation 31,156 - 85,402
Profit/(loss) for the period (292,432) (454,635) 3,178,578
Other comprehensive income
Items that may be reclassified
subsequently to profit or loss:
Exchange differences on foreign
operations (76,650) - 192,270
Total comprehensive income (369,082) (454,635) 3,370,848
Attributable to:
Owners of the Company (358,502) (454,635) 3,178,359
Non-controlling Interests (10,580) - 192,489
(369,082) (454,635) 3,370,848
---------------------------------- ------ ------------ ------------ ------------
Earnings / (loss) per share
from continuing
operations attributable to
the equity owners
Basic earnings / (loss) per
share (pence) 3 (0.1p) (0.1p) 0.7p
Fully diluted earnings / (loss)
per share (pence) 3 (0.1p) (0.1p) 0.4p
Alpha Growth plc
CONSOLIDATED Statement of Financial Position
AS AT 30 june 2023
(Unaudited) (Unaudited) (Audited)
As at As at As at
30.6.2023 30.6.2022 31.12.2022
Note GBP GBP GBP
Assets
Intangible fixed asset 960,285 845,694 939,955
Right of use assets 173,096 258,574 183,672
Annuity contracts 7,091,321 - 7,063,374
Total assets in insurance
business 435,310,844 214,843,900 454,303,995
Trade and other receivables 722,173 347,705 453,266
Cash and cash equivalents 113,281 44,479 218,530
Total assets 444,371,000 216,340,352 463,162,792
Equity and liabilities
Equity attributable to
shareholders
Share capital 4 467,775 431,887 431,887
Share premium 4 6,248,962 5,388,152 5,388,152
Option reserve 669,948 480,674 815,474
Share based payment reserve - 113,390 113,390
Foreign exchange reserve 124,857 201,473 182,748
Retained deficit (787,166) (3,902,468) (505,314)
Total equity attributable
to shareholders 6,724,376 2,713,108 6,426,337
Non-controlling interests - 84,517 282,098
Total equity 6,724,376 2,797,625 6,708,435
-------------------------------- ----- ------------ ------------ ------------
Liabilities
Lease liabilities 202,513 271,239 238,483
Total liabilities in insurance
business 429,900,054 213,091,992 447,956,125
Structured settlements 7,091,242 7,063,374
Trade and other payables 451,269 179,496 1,196,375
Income tax payable 1,546 - -
Total liabilities 437,646,624 213,542,727 456,454,357
-------------------------------- ----- ------------ ------------ ------------
Total equity and liabilities 444,371,000 216,340,352 463,162,792
Company number: 09734404
Alpha Growth plc
CONSOLIDATED Statement of Changes in Equity
INTERIM periodED 30 june 2023
Share Share Option Share-based Foreign Retained Total Non- Total
Capital Premium Reserve Payment Exchange Deficit Attributable Controlling
to
Reserve Reserve Shareholders Interests
GBP GBP GBP GBP GBP GBP GBP GBP GBP
AS AT 31
DECEMBER 2021 431,887 5,404,313 480,674 113,390 - (3,500,925) 2,929,339 89,609 3,018,948
Loss for the
period (449,543) (449,543) (5,092) (454,635)
Foreign exchange
gain
on conversion
of subsidiary - - - - 201,473 - 201,473 - 201,473
Total
comprehensive
income for the
period - - - - 201,473 (449,543) (248,070) (5,092) (253,162)
Share issue
costs - (16,161) - - - - (16,161) - (16,161)
AS AT 30 JUNE
2022 431,887 5,388,152 480,674 113,390 201,473 (3,950,468) 2,665,108 84,517 2,749,625
- -
Profit for the
period - - - - - 3,445,154 3,445,154 188,059 3,633,213
Foreign exchange
loss
on conversion
of subsidiary - - - - (18,725) - (18,725) 9,522 (9,203)
Total
comprehensive
income for the
period - - - - (18,725) 3,445,154 3,426,429 197,581 3,624,010
Employee share
options
issued - - 334,800 - - - 334,800 - 334,800
AS AT 31
DECEMBER 2022 431,887 5,388,152 815,474 113,390 182,748 (505,314) 6,426,337 282,098 6,708,435
Loss for the
period - - - - - (281,852) (281,852) (10,580) (292,432)
Foreign exchange
loss
on conversion
of subsidiary - - - - (57,891) - (57,891) (18,759) (76,650)
Total
comprehensive
income for the
period - - - - (57,891) (281,852) (339,743) (29,339) (369,082)
Shares issued 35,888 860,810 - - - - 896,698 - 896,698
Employee share
options
expired - - (145,526) - - - (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 (787,166) 6,724,376 - 6,724,376
----------------- -------- ---------- ---------- ------------ --------- ------------ ------------- ------------ ----------
Alpha Growth plc
CONSOLIDATED Statement of Cash Flows
INTERIM PERIODED 30 june 2023
(Unaudited) (Unaudited) (Audited)
6 months 6 months 12 months
Ended Ended Ended
30.6.2023 30.6.2022 31.12.2022
GBP GBP GBP
OPERATING ACTIVITIES
Loss for the period before interest
and taxation (318,915) (447,446) 3,121,014
Adjusted for:
Services settled by way of payment
in shares/options (258,916) - 334,800
Amortisation of intangible assets
and right of use assets 39,150 22,670 116,699
Goodwill on the acquisition (48,004) - -
of non-controlling interests
Income tax paid (2,208) - -
Operating cash outflows before
movements in working capital: (588,894) (424,776) 3,572,513
(Increase)/decrease in trade
and other receivables (268,907) (74,141) (179,702)
Increase in non-tax net assets
in insurance company 905,495 251,316 (4,460,717)
Increase/(decrease) in trade
and other payables (435,760) 117,777 726,657
Net cash used in operating activities (388,066) (129,824) (341,249)
INVESTING ACTIVITIES
Acquisition of intangible asset - - (113,387)
Acquisition of subsidiary (net
of cash acquired) - - 193,493
Acquisition of non-controlling (282,098) - -
interest
Net cash inflow/(outflow) from
investing activities (282,098) - 80,106
--------------------------------------- ------------ ------------ ------------
FINANCING ACTIVITIES
Repayment of leasing liabilities (31,783) 2,130 (30,626)
Interest on leasing liabilities
and loans - (7,189) (19,063)
Loan finance (300,000) - 350,000
Net proceeds from issuance of
shares net of issue costs 896,698 (16,161) (16,161)
Net cash (outflow)/inflow from
financing activities 564,915 (21,220) 284,150
--------------------------------------- ------------ ------------ ------------
Net (decrease)/increase in cash
and cash equivalents (105,249) (151,044) 23,007
Cash and cash equivalents at
beginning of period 218,530 195,523 195,523
Cash and cash equivalents at
end of period 113,281 44,479 218,530
--------------------------------------- ------------ ------------ ------------
Alpha Growth plc
Notes to the Financial Statements
interim results to 30 june 2023
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 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 28 September 2023. 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 2023 are unaudited and do not constitute fully
prepared statutory accounts. The comparative figures for the 12
month period ended 31 December 2022 are extracted from the 2022
audited financial statements. The independent auditor's report on
the 2022 financial statements was not qualified.
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.
3. EARNINGS per Share
The basic earnings 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 2023 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.
30.6.2023 30.6.2022 31.12.2022
GBP GBP GBP
Profit/(loss) for the period
from continuing operations: (292,432) (454,635) 3,178,578
------------------------------------- ------------ ------------ ------------
Weighted average number of ordinary
shares in issue for basic earnings 447,084,823 431,887,388 431,887,388
Fully diluted average number
of shares in issue 447,084,823 431,887,388 777,100,388
Basic earnings / (loss) per
share (0.1p) (0.1p) 0.7p
Fully diluted earnings / (loss)
per share (0.1p) (0.1p) 0.4p
4. Share capital AND SHARE PREMIUM
Ordinary Share capital Share premium
shares of
GBP0.001
each
Number GBP GBP
At 1 January 2022 431,887,388 431,887 5,404,313
------------------------------ ------------ --------------- --------------
Costs related to listing of
shares issued 15 March 2021 - - (16,161)
At 31 December 2022 431,887,388 431,887 5,388,152
------------------------------ ------------ --------------- --------------
Warrant exercise 18,750,000 18,750 469,640
Share issue 17,137,680 17,138 421,780
Costs of issue - - (30,610)
At 30 June 2023 467,775,068 467,775 6,248,962
------------------------------ ------------ --------------- --------------
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IR NKFBDNBKBACB
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September 29, 2023 06:00 ET (10:00 GMT)
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