Half-year Report

RNS Number : 2534B
Alpha Growth PLC
30 September 2022
 

 

Alpha Growth plc

 

Interim report for period ended

 

30 June 2022

 

   



Chairman's Statement

PERIOD ENDED 30 JUNE 2022

 

I am pleased to announce our unaudited interim financial results for the period to 30 June 2022.

Over the first six months of this year, we continued to invest considerable time and resources in executing our 2B plan, Alpha's ambitious plan to be managing over $2bn of assets by 2025. As a result of this work, I'm pleased to report that a number of key initiatives to support this plan are tracking ahead of schedule and the Board remains confident of achieving our objectives.

The continued investment showed a growth in revenue from continuing operations to £1,633,445 for the first six months (£1,311,840 for same period 2021) and a loss before tax of £454,635 (£323,835 for same period 2021). As of the end of June 2022, total assets under management (funds managed by the group plus group owned insurance assets) were £258 million (£238 million at the same point in 2021).

The increase in losses reflects increased marketing activity at the operating company levels, acquisition related costs, and inflationary pressures in regular operating expenditures.  

Progress in achieving our stated objectives is promising and we still have a significant number of wide-ranging initiatives we are working on to deliver, which will further strengthen, scale and transform the business.

We are looking forward to shortly integrating the Guernsey acquisition previously announced on 24th March therefore substantially increasing our AUM and revenue; the roll out of our innovative and class leading interval fund; and the further strengthening of our Board and leadership team.

We also continue to advance our build and buy strategy to ensure continued and substantive ongoing growth of the business.

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.  

The volatility in capital markets is continuing to cause challenges across the market, however we continue to be confident that both our fund and insurance business segments continue to be attractive to the sophisticated investor and institutional marketplace that we work with.

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 2022

 



 

RESULTS FOR THE PERIOD

INTERIM PERIOD ENDED 30 June 2022

 

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 2022



 

Alpha Growth plc

 

CONSOLIDATED Statement of comprehensive income

INTERIM period ENDED 30 june 2022

 

 


 

(Unaudited)

(Unaudited)

(Audited)


 

Six months

Ended

30.6.2022

Six months

Ended

30.6.2021

16 months

Ended 31.122021


Notes


£

  £

£

Continuing operations


 



Revenue from Owned Insurance Companies


1,463,768

1,185,467

2,290,948

Revenue from Contracts with Clients


169,677

126,373

354,224

Total revenue


1,633.445

1,311,840

2,645,172



 



Cost of sales


(1,285,367)

(864,695)

(1,892,257)



 



Gross Profit

 

348,078

447,145

752.915


 

 



Operating expenses

 

(828,971)

(799,536)

(2,467,888)



 





 



Operating Loss


(480,893)

(352,391)

(1,714,973)

Investment income and movements in DAC


33,447

28,556

27,355

Investment expense


(7,189)

-

(8,306)

 


 



 

Loss before tax


(454,635)

(323,835)

(1,695,924)

Tax

 

  -

(64,151)

29,620



 



 

Loss for the period


(454,635)

(387,986)

(1.666,304)

 


 



 


 



Loss per share attributable to owners of the parent company


 



 


 



Basic and diluted (pence per share)

3

(0.15p)

(0.1p)

(0.5p)



 



 

 

The Group has no items of other comprehensive income.

 



 

Alpha Growth plc

 

CONSOLIDATED Statement of Financial Position

AS AT 30 june 2022

 

 


 

(Unaudited)

(Unaudited)

(Audited)


 

As at

30.6.2022

As at

30.6.2021

As at 31.12.2021


Note

£

£

£

 


 



Non-current assets


 



Right of use assets


258,574

296,736

262,117

Intangible assets


845,694

883,949



1,104,268

1,180,685

1,126,938

 

Current assets


 



Total assets in insurance business


214,843,900

211,141,862

209,251.676

Trade and other receivables


347,705

91,502

273,564

Cash and cash equivalents


44,479

694,692

 

 


215,236,084

211.928,056



 



Current liabilities


 



Total liabilities in insurance business


213,091,992

209,039,868

207,449,925

Lease liabilities


60,136

48,954

51,868

Trade and other payables


179,496

6,515

61,719

 

 


213,331,624

209,095,337

207,563,512

 

Net current assets

 


1,904,460

 

2,832,719

 

2,157,251

 

Non-current liabilities


 



Lease liabilities


(211,103)

(242,618)

(217,241)

 

Net assets


2,797,625

3,770,786

3,066,948

 


 





 



EQUITY


 



Equity attributable to owners of the parent


 



Share capital

4

431,887

431,887

431,887

Share premium

4

5,388,152

5,563,604

5,404,313

Share based payment reserve


113,390

-

113,390

Option reserve


480,674

-

480,674

Foreign exchange reserve


201,473

-

-

Retained earnings


(3,902,468)

(2,329,805)

(3,452,925)

Minority interest


84,517

105,100

 

Total equity


2,797,625

3,770.786

3,066,948

 


 

 


 

Company number: 09734404



 

Alpha Growth plc

 

CONSOLIDATED Statement of Changes in Equity

INTERIM period ENDED 30 june 2022

 

 

 


Share capital

Share premium

 

Other reserves

Retained earnings

 

Minority

Interest

Total

 

 







AS AT 31 DECEMBER 2020

240,816

2,183,030

-

(1,937,820)

-

486,026

 

 

Shares issued during the period

191,071

3,608,929

-

-

-

3,800,000

Share issue costs

-

(228,355)

-

-

-

  (228,355)

Minority interest arising on acquisition

-

-

-

-

101,101

101,101

Total comprehensive (loss)/profit for the period

-

-


(391,985)

 

3,999

(387,986)

AS AT 30 JUNE 2021

431,887

5,563,604

-

(2,329,805)

105,100

3,770,786

Share issue costs

-

(159,291)

113,390

-

-

(45,901)

Employee options issued

-

-

480,674

-

-

480,674

Total comprehensive loss for the period

-

-

-

(1,123.120)

(15,491)

(1,138.611)

AS AT 31 DECEMBER 2021

431,887

5,404,313

594,064

(3,452,925)

89,609

3,066.948

Share issue costs

-

(16,161)

-

-

-

(16,161)

Foreign exchange reserve arising on consolidation

-

-

201,473

-

-

201,473

Total comprehensive loss for the period

-

-

-

(449,543)

(5,092)

(454,635)

AS AT 30 JUNE 2022

431,887

5,388,152

795,537

(3,902,468)

106,448

2,797,625

 



 

Alpha Growth plc

 

CONSOLIDATED Statement of Cash Flows

INTERIM PERIOD ENDED 30 june 2022

 


(Unaudited)

(Unaudited)

(Audited)


6moths Ended

30.6.2022

6 months

 Ended

30.6.2021

16 months

Ended 31.12.2021


£

£

£


 



OPERATING ACTIVITIES

 



Loss for the period before interest and  taxation

(447,446)

(323,835)

(1,687,618)

Adjusted for:

 



Share based payments

-

-

480,674

Amortisation of intangibles and right of use assets

22,670

19,127

72,873


 



 

Operating cash outflows before movements in working capital:

(424,776)

(304,708)

(1.134,071)

(Increase)/decrease in trade and other receivables

(74,141)

108,483

(28,439)

Increase in assets in insurance business

(5,592,224)

(211,141,862)

(209,022,056)

Increase/(decrease) in trade and other payables

117,777

5,515

(30,294)

Increase in liabilities in insurance business

5,642,067

209,039,868

207,449.925


 



 

Net cash used in operating activities

(331,297)

(2,292.704)

(2,964,935)


 



FINANCING ACTIVITIES

 



Repayment of leasing liabilities

2,130

-

(27,627)

Interest on leasing liabilities

(7,189)

-

(8,306)

Net proceeds from share issues

(16,161)

3,571,645

3,954,744


 



 

Net cash (outflow/)inflow  from financing activities

(21,220)

3,571,645

3,918,811


 



INVESTING ACTIVITIES

 



Foreign exchange gain on consolidation

201,473

-

-

Acquisition of intangible assets

-

(903.075)

(903,075)

Acquisition of non-controlling interest

-

101,101

101,102


 



Net cash inflow/(outflow) from investing activities

201,473

(801,974)

(801,973)

Net (decrease)/increase in cash and cash equivalents

(151,044)

476,967

151,903

Cash and cash equivalents at beginning of period

195,523

 217,725

43,620


 



 

Cash and cash equivalents at end of period

44,479

694,692

195,523

 

 



 



 

Alpha Growth plc

 

Notes to the Financial Statements

interim results to 30 june 2022

 

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 30 August 2022. Copies of this interim report can be found on the Company's website at www.algwplc.com .

These condensed interim financial statements for the six months ended 30 June 2022 are unaudited and do not constitute fully prepared statutory accounts. The comparative figures for the 16 month period ended 31 December 2021 are extracted from the 2021 audited financial statements. The independent auditor's report on the 2021 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 ability of the Group to carry out its planned business objectives is dependent on its continuing ability to raise adequate financing from equity investors and/or the achievement of profitable operations.

The Directors have a reasonable expectation that the Group will be able to achieve the above 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. As detailed in the Chairman's statement the Impact of COVID-19 has led to some delays in the expected timing of transactions that the Company plans to be involved in and generate fees from but has led to a greater interest in SLS assets and therefore should benefit the Group in the longer term. 



 

3.  LOSS 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 31 August 2021 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. 


30.6.2022

30.6.2021

31.12.2021





Loss for the period from continuing operations:

454,635

387,986

1,666,304


 



Weighted average number of ordinary shares in issue for basic earnings

431,887,388

352,546,425

190,901,671


 



Weighted average number of shares in issue for fully diluted earnings

 

431,887,388

352,546,425

354,478,424

BASIC AND FULLY DILUTED LOSS PER SHARE:

 



- from continuing and total operations (pence)

0.1

0. 1

0.5

.

4.  Share capital AND SHARE PREMIUM


Ordinary shares of £0.001 each

 Share capital

Share premium


Number

£

£

At 1 January  2021

 

240,815,959

240,816

2,183,030





On 15 March 2021 the Company issued  187,500,000  ordinary shares of £0,001 each at a price of 2.0p per share as part of a placing

187,500.000

187,500

3,174,855

On 17 May 2021 the Company issued  3,571,429  ordinary shares of £0,001 each at a price of 1.4p per share following a warrant exercise

3,571,429

3,571

46,428









At 31 December 2021

431,887,388

431,887

5,404,313

 

 

 

 

 

Costs related to listing of saes issued 15 March 2021

-

-

(16,161)





AT 30 JUNE 2022

431,887,388

431,887

5,388,152





 

 

 

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