TIDMALGW
RNS Number : 2534B
Alpha Growth PLC
30 September 2022
Alpha Growth plc
Interim report for period ended
30 June 2022
Chairman's Statement
PERIODED 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 GBP1,633,445 for the first six months
(GBP1,311,840 for same period 2021) and a loss before tax of
GBP454,635 (GBP323,835 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 GBP258 million (GBP238
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 24(th) 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 PERIODED 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 periodED 30 june 2022
(Unaudited) (Unaudited) (Audited)
Six months Six months 16 months
Ended Ended Ended 31.122021
30.6.2022 30.6.2021
GBP GBP
Notes GBP
--------------------------------- ------ ------------ ------------ -----------------
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 As at As at 31.12.2021
30.6.2022 30.6.2021
Note GBP GBP GBP
Non-current assets
Right of use assets 258,574 296,736 262,117
Intangible assets 845,694 883,949 864,821
-------------------------------- ----- ------------ ------------ -----------------
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 44,479 694,692 195,523
-------------------------------- ----- ------------ ------------ -----------------
215,236,084 211.928,056 209,720,763
-------------------------------- ----- ------------ ------------ -----------------
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 89,609
-------------------------------- ----- ------------ ------------ -----------------
Total equity 2,797,625 3,770.786 3,066,948
Company number: 09734404
Alpha Growth plc
CONSOLIDATED Statement of Changes in Equity
INTERIM periodED 30 june 2022
Other reserves Retained Minority
Share capital Share premium earnings 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 PERIODED 30 june 2022
(Unaudited) (Unaudited) (Audited)
6moths Ended 6 months 16 months
30.6.2022 Ended Ended 31.12.2021
30.6.2021
GBP GBP GBP
---------------------------------- ------------- -------------- ------------------
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 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
GBP0.001 Share
each capital Share premium
Number GBP GBP
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
GBP0,001 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 GBP0,001
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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