Alpha Group reports full-year growth in revenue, profits

(Sharecast News) - Alpha Group International reported a 23% increase in group revenue to £135.6m for the year ended 31 December on Wednesday, reflecting strong organic growth and the expanding contribution of its Cobase platform. The FTSE 250 company said that excluding Cobase, revenue rose 20% to £132.7m.

Private markets revenue grew 20% to £69m, while corporate revenue increased 21% to £63.8m.

Cobase, which contributed £2.9m in revenue compared to £0.2m the prior year, continued to expand its role within the business.

Total income, including net treasury income, rose 19% to £220.9m.

Profit before tax increased 6% to £123.1m, while underlying profit before tax grew 10% to £47.4m.

The company maintained a strong underlying profit margin of 35%, or 37% when excluding Cobase.

Net treasury income from interest on client balances rose 14% to £84.0m.

Adjusted net cash increased by £38.7m to £217.5m, underscoring Alpha's cash generation and debt-free status.

Basic earnings per share rose 5% to 215.7p, with underlying basic EPS up 13% to 86.4p.

The board declared a final dividend of 14p per share, taking the total final dividend for the year to 18.2p.

Alpha joined the FTSE 250 index in June 2024 following its listing on the Premium Segment of the Main Market in May.

The company also saw leadership changes, with Dame Jayne-Anne Gadhia appointed as chair and Clive Kahn succeeding Morgan Tillbrook as CEO on 1 January.

It noted that trading momentum in the second half of 2024 had continued into the current year, reinforcing its confidence in the outlook for 2025 and beyond.

The firm highlighted the growth potential of its overseas corporate offices and the ongoing expansion of its private markets division, which now offered four key product lines.

Cobase was also expected to make an increasing contribution to the group's performance.

"The impressive top-line growth reflected in our 2024 financial performance is driven by initial returns on the investments made over the last three years to improve our customer offering and market coverage," said chief executive officer Clive Kahn.

"I am excited by the number of product and market opportunities, the majority of which remain in relatively nascent stages, and I am confident in the scale of untapped demand for our products and services and our ability to execute effectively and deliver sustainable growth for all stakeholders.

"I believe the future belongs to companies that think smart, move fast and execute with precision - my role is focused on ensuring that Alpha masters these attributes and is therefore built to win."

At 0847 GMT, shares in Alpha Group International were up 0.81% at 2,490p.

Reporting by Josh White for Sharecast.com.