Annual Financial Report

Alpha Growth PLC

30 April 2024

 

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 (as in force in the United Kingdom pursuant to the European Union (Withdrawal) Act 2018). Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Alpha Growth Plc

("Alpha", the "Company" or the "Group")

Release of 2023 Annual Report

Alpha Growth Plc (LSE: ALGW and OTCQB: ALPGF), a leading financial services specialist in the growing longevity asset class and insurance linked asset management business, is pleased to announce the release of its Annual Report & Financial Statements for the twelve months ended 31 December 2023 (the '2023 Annual Report'). The 2023 Annual Report is available at www.algwplc.com.

As at 31 December 2023, the Group had significant cash reserves of c.£7.42 million (excluding amounts held within life policies).

The Board has adopted new Key Performance Indicators (KPIs) as detailed on page 14 of the 2023 Annual Report, which demonstrated stability following the acquisitions at the end of 2022. The Group's assets under administration and management reached $619 million, a small advance towards the Board's $2 billion goal, whilst the surplus in net current assets over regulatory capital requirements amounted to £2.7 million, reflecting a healthy financial position. 

In further positive news, the Company has fully repaid its borrowings and is now debt free.

The Company anticipates no current need for further equity capital as it advances towards its established goal of managing over $2 billion in assets by 2025. Both Alpha International Life Assurance Company (Guernsey) Ltd ("AILAC") and Providence Life Assurance Company Ltd ("PLAC") achieved credit ratings in the past year, positioning these entities as potential financing vehicles for acquisitions, if required. This development marks a substantial leap forward for the Company, bolstering its M&A strategy significantly.

The Company's path forward includes adding to Alpha's core management team in the positions of fund and life insurance marketing. The Company is encouraged by independent feedback in the industry of the life insurance linked wealth management "ecosystem" it has assembled. The updated Alpha website (www.algwplc.com) has also received many compliments regarding how it explains the "ecosystem" the Company is building. The Directors are confident that this recognition will, in due course, translate into increased market value as a wider audience becomes more acquainted with Alpha and its offerings.

The Board draws shareholders' attention to the Audit Report contained in the 2023 Annual Report issued by PKF Littlejohn LLP ("PKF"), which includes a disclaimer of opinion due to PKF being unable to assess the potential impact of IFRS 17 on the accounts. Management's view is that the treatment of all contracts issued by AILAC and PLAC as investment contracts in accordance with IFRS 9 is both consistent with prior years and has no material impact on the reported loss or net assets. Accordingly, the financial statements are consistent with UK adopted International Accounting Standards.

The Company continues to actively evaluate and pursue a number of acquisition opportunities and the board looks forward to updating shareholders in due course.

Gobind Sahney, Executive Chairman, commented, "I am proud of our team for what has been accomplished in 2023. In particular, achieving an investment grade rating for our insurance companies is a significant step forward for the organisation and will play an important role as we accelerate our buy and build strategy.  Additionally, the integration of AILAC into our Group and the ongoing development of our organisation further reinforce our trajectory for sustained growth."

The 2023 Annual Report will in due course also be available for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

** ENDS **

For more information, please visit www.algwplc.com or contact the following:

Alpha Growth plc	[phone]
Gobind Sahney, Executive Chairman	[e-mail]
Allenby Capital Limited	[phone]
Amrit Nahal (Sales and Corporate Broking)
Nick Athanas / Piers Shimwell (Corporate Finance)
UK Investor Relations - Mark Treharne	[e-mail]

About Alpha Growth plc

Specialist in Longevity Assets

Alpha Growth plc is a financial advisory business providing specialist consultancy, advisory, and supplementary services to institutional and qualified investors globally in the multi-billion dollar market of longevity assets. Building on its well-established network, the Alpha Growth group has a unique position in the longevity asset services and investment business, as a listed entity with global reach. The group's strategy is to expand its advisory and business services via acquisitions and joint ventures in the UK and the US to attain commercial scale and provide holistic solutions to alternative asset institutional investors who are in need of specialised skills and unique access to deploy their financial resource in longevity assets.

Longevity Assets and Non-correlation

As a longevity asset, it is non-correlated to the real estate, equity capital and commodity markets.  Its value is a function of time because as time passes the value gets closer to the face value of the policy. Hence creating a steady increase in the net asset value of the investment. This makes it highly attractive to investors wishing to counteract volatility within an investment portfolio and add yield.

Note: The Company only advises on and manages Longevity Assets that originate in the USA where the structured and life settlement market is highly regulated.

Forward Looking Statements Disclaimer

Certain statements, beliefs and opinions in this document are forward-looking, which reflect the Company's or, as appropriate, the Company's directors' current expectations and projections about future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward- looking statements, which speak only as of the date of this document.  Readers should not treat the contents of this document as advice relating to legal, taxation or investment matters, and are to make their own assessments concerning these and other consequences, including the merits of information and the risks.  Readers of this announcement are advised to conduct their own due diligence and agree to be bound by the limitations of this disclaimer.

Important Notice

The content of this announcement has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (FSMA). This announcement has been issued by and is the sole responsibility of the Company. The information in this announcement is subject to change.

 

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