ALPHA GROWTH PLC

Interim / Quarterly Report • Sep 30, 2022

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RNS Number : 2534B

Alpha Growth PLC

30 September 2022

Alpha Growth plc

Interim report for period ended

30 June 2022

Chairman's Statement

PERIOD ENDED 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 £1,633,445 for the first six months (£1,311,840 for same period 2021) and a loss before tax of £454,635 (£323,835 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 £258 million (£238 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 24th 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 PERIOD ENDED 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 period ENDED 30 june 2022

		(Unaudited)	(Unaudited)	(Audited)
		Six months Ended 30.6.2022	Six months Ended 30.6.2021	16 months Ended 31.122021
	Notes	£	£	£
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 30.6.2022	As at 30.6.2021	As at 31.12.2021
	Note	£	£	£
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 period ENDED 30 june 2022

	Share capital		Share premium		Other reserves		Retained earnings		Minority 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 PERIOD ENDED 30 june 2022

	(Unaudited)	(Unaudited)	(Audited)
	6moths Ended 30.6.2022	6 months  Ended 30.6.2021	16 months Ended 31.12.2021
	£	£	£
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 £ 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 £0.001 each		Share capital		Share premium
		Number		£		£
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 £0,001 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 £0,001 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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