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
|
Allenby Capital Limited
|
+44 (0) 20 3328 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 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. 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
liabilities
|
2,328,343
|
8,460,707
|
10,950,357
|
|
|
|
|
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.
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
|