Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Alpha Group International PLC on Thursday reported ‘exceptional’ annual earnings, but said the macro environment ‘could remain challenging’.
The London-based company, which provides financial solutions to corporate and institutional clients, said pretax profit more than doubled to £115 million in 2023, from £47.2 million the year before.
Alpha Group said revenue rose 12% to £110 million from £98.3 million. Underlying pretax profit grew 10% to around £42 million from £47.2 million, while the underlying profit margin was unchanged at 39%.
Alpha Group also noted that in the fourth quarter, Alternative Banking client balances rose by 31% against the same period in 2022, to £2.1 billion from £1.6 billion.
However, the company said that while the revenue and underlying profit growth showed ‘the appeal and resilience of our offering’, the rate of underlying growth was slightly lower than expected thanks to ‘prevailing economic headwinds throughout the year’.
‘In simple terms, 2023 showed that in a higher interest rate environment, underlying growth becomes more challenging, but the cash and statutory profit from interest income becomes exceptional - a trade-off that, in reality, creates significant opportunities for Alpha’s long-term growth prospects,’ explained Chief Executive Officer Morgan Tillbrook.
‘Nonetheless, as a business that strives for high levels of performance, we very much remain focused on delivering strong underlying growth, and so whilst this additional income is a boost, as a team, it is not one by which we will be measuring our own success.’
Alpha Group International shares were down 3.0% at 1,640.00 pence on Thursday afternoon in London.
Copyright 2024 Alliance News Ltd. All Rights Reserved.