Alpha Returns Group plc Investment Update
September 14 2015 - 7:50AM
UK Regulatory
TIDMARGP
Alpha Returns Group plc
(the "Company" or "Alpha Returns")
14 September 2015
Investment Update
Riche Bright Securities Limited ("RB Securities") (formerly MY
Securities Limited)
Alpha Returns, the AIM traded investing company focussing on investments
in high-growth Asian economies, is pleased to provide the following
update on RB Securities, a member firm of the Stock Exchange of Hong
Kong Limited (formerly MY Securities Limited ("MYS") and recently
renamed) which is a wholly owned subsidiary of the Company's 70 per
cent. owned joint-venture investment vehicle Riche Bright Group Limited
("Riche Bright").
On 29 January 2015 the Company announced that trading at RB Securities
had significantly improved since Riche Bright completed its acquisition
on 7 August 2014, with unaudited management accounts for the 9 month
period to 31 December 2014 showing a return to profitability on
significantly increased commission income. The Company is now pleased to
update that the improved trading of RB Securities has continued into the
first quarter of 2015 with audited annual accounts for RB Securities'
year ended 31 March 2015 showing pretax profits of HK$5.356m (2014:
losses HK$ 0.554m) on commission fee income of HK$12.450m (2014: HK$
1.995m) and a profit after tax of HK$4.916m (2014: losses HK$ 0.554m).
The directors of RB Securities have also declared and paid a dividend of
HK$1 million (GBP83,000).
Commission fee income included HK$8.597m (2014: Nil) with Sze Thye Group
Limited ("Sze Thye"), of which HK$8.25m (approx. GBP655,000) was after
the Riche Bright acquisition of MYS and HK$2.48m (approx. GBP197,000) in
2015. Commission on Sze Thye trades through RB Securities was charged at
a minimum rate of 0.125% of the total value of transactions, in
accordance with the terms of the client agreement between MYS and Sze
Thye dated 28 March 2014, as amended in May 2014. Sze Thye is a
substantial shareholder in the Company with 28.04 per cent. of the
Company's issued ordinary share capital. The directors of Alpha Returns
(all of whom are independent of Sze Thye), having consulted with the
Company's nominated adviser, consider that the terms of the client
agreement between MYS and Sze Thye, and hence the terms of all
individual transactions between MYS/RB Securities and Sze Thye, to be
fair and reasonable insofar as the Company's shareholders are concerned.
There has been no commission fee income from Sze Thye during the period
since 31 March 2015.
Additional disclosures in respect of RB Securities
D&I Developments Limited ("D&ID") charges RB Securities rental income of
HK$120,000 pcm in respect of its offices at 32/F West Tower, Shun Tak
Centre, HK in accordance with the terms of a rental agreement dated 1
July 2014 (previously HK$40,000 pcm) and renewed at the same rental for
a further two year period on 8 July 2015. D&ID is beneficially owned by
Mang King Chung Dennis (the ultimate beneficial owner of MYS prior to
its sale on 7 August 2014 to Riche Bright) and his wife. Additionally,
Tsui Wai Kei (a director of MYS/RB Securities) was one of three
directors of D&ID until 7 August 2015. The directors of Alpha Returns,
having consulted with the Company's nominated adviser, consider the
terms of the rental agreement to be fair and reasonable insofar as the
Company's shareholders are concerned. During MYS's year ended 31 March
2015, rental income of HK$1.26m (2014 HK$0.72m) was paid to D&ID.
For further information:
Christopher Neo
Alpha Returns Group plc Executive Director 020 3286 6388
ZAI Corporate Finance Ltd Peter Trevelyan-Clark / Ivy
(NOMAD) Wang 020 7060 2220
Peterhouse Corporate Finance
(Broker) Duncan Vasey / Lucy Williams 020 7220 9797
This announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Alpha Returns Group plc via Globenewswire
HUG#1951846
http://www.alpharet.com
(END) Dow Jones Newswires
September 14, 2015 07:50 ET (11:50 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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