Alpha Group Records Revenue of £55M with 20% YoY Increase for H1 2023

Alpha Group International plc, a high-tech, high-touch provider of financial solutions dedicated to corporates and institutions operating internationally, has revealed its trading update for the six-month period ended 30 June 2023 (H1 2023), seeing an increase of 20% in the Group's revenue for the period.

Specifically, the Group's revenue jumped by 20% from GBP 46 million in H1 2022 to GBP 55 million.

FX Risk Management (FXRM) revenue came in at GBP 39 million, rising by 21% from GBP 32 million in the same period of last year, with growth in client numbers of 1,089 from 1,047 in H1 2022. Compared to data from last year's H1, revenue from forwards during H1 2023 was broadly flat and revenue from spot contracts increased by nearly 50%. Furthermore, FXRM saw a record month in June for both total revenue and Portfolio Managers achieving their new business quotas.

Alternative Banking revenue increased by 17% from GBP 14 million to GBP 16 million on a yearly basis, and increased by 32% when including the net increase in deferred revenue from account fees. The account number of the business increased by over 1,150 during H1 2023, bringing the total account number to 5,350 to date.

Other operating income from interest on client balances recorded GBP 33 million in H1 2023, with average Alternative Banking client balances in Q2 2023 of GBP 1.9 billion and blended average interest rates of 3.8%, comparing to GBP 1.6 billion and 2.8% in Q1 2023.

Adjusted net cash increased by 26% in the six months to over GBP 142 million.

Morgan Tillbrook, Founder & Chief Executive Officer of Alpha Group, commented: "It is testament to our strategy, offering, and most importantly, our team, that we have continued to grow strongly in spite of some challenging macro-economic headwinds. I am proud that the operational progress and investments that we have continued to make during this period remain very much long-term focused. I am therefore confident that our prospects remain excellent, and that as macro-economic conditions improve, we remain in a great position to capitalise on the sizeable market opportunity in front of us."