Alpha Group shares jump as expects to post 20% revenue growth for 2024

(Alliance News) - Alpha Group International PLC on Tuesday saw its share price surge in response ...

Alliance News 21 January, 2025 | 9:21AM
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(Alliance News) - Alpha Group International PLC on Tuesday saw its share price surge in response to positive 2024 trading, as the group anticipates full-year revenue growth of around 20%.

Alpha Group's shares jumped 8.4% to 2,440.00 pence each in London on Tuesday morning.

The London-based provider of financial services, including foreign exchange risk management, said it expects to post revenue about 20% higher for 2024, rising to around GBP135 million from GBP110 million in 2023.

This was driven by a 19% growth in its Corporate division, as revenue surged to around GBP64 million in 2024 from GBP53 million the year before, while revenue in its Institutional division also increased by 19%, to around GBP69 million from GBP57 million.

Divisional growth was primarily due to "increasing contributions from overseas offices and new product offerings", Alpha Group explained.

Alpha Group said it expects to deliver underlying pretax profit in line with market expectations, though it didn't on Tuesday state what it believes those to be. Panmure Liberum has forecast underlying pretax profit for Alpha Group of GBP47 million, up 8.9% from the GBP43 million recorded for 2023.

Average client balances in the fourth quarter were up 9.1% to GBP2.3 billion from GBP2.1 billion the year before, while the interest rates received on these balances averaged at 3.5% for the three-month period.

Chief Executive Officer Clive Kahn said: "I am pleased to start my tenure as CEO by confirming strong growth and an impressive result, particularly given the challenging macro-economic backdrop."

Kahn moved from chair to CEO at the start of this month, replacing Morgan Tillbrook, who had resigned in September to continued in post until the end of the year. Kahn was replaced as chair in November by Jayne-Anne Gadhia, then an Alpha non-executive director and previously CEO of Virgin Money UK PLC.

"The fact that Alpha has produced such levels of growth in challenging economic times is the greatest accolade to the strength of our model and team, particularly with the strong cash generation aided by the continuing high-interest rate environment," Kahn said.

"The group's focus will be to build on the strong foundations already established, by maintaining investment in innovation to scale the business even further, whilst continuing to deliver high returns for shareholders."

Alpha Group International will release its 2024 results in the week beginning March 17.

By Emily Parsons, Alliance News reporter

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Alpha Group International PLC 2,370.00 GBX 5.33 -

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