Alpha Group registers 23% Y/Y growth in revenues in FY 2024
Alpha Group International plc (LON:ALPH), a global provider of high-tech, high-touch financial solutions to corporates and institutions, today provided a trading update for FY 2024.
Revenue from underlying activities increased 23% to approximately £135 million (FY 2023: £110m).
Total Income amounted to circa £221 million (2023: £186m), growth of about 18%, including income from interest on client and own balances of about £85 million (FY 2023: £76m).
The Group performed strongly in 2024, with revenue growth of 23% despite a continuing difficult economic backdrop. Pleasingly, the growth was delivered across the business with both Corporate and Institutional divisions up by c. 20% year on year, driven by increasing contributions from overseas offices and new product offerings.
Cobase also contributed strongly in its first year with the Group, following its acquisition in December 2023. H2’s revenue performance was aided by a gradual market recovery and a more normalised seasonal pattern of activity in the Corporate market.
Throughout 2024 the Corporate division continued to adapt to the more challenging macroeconomic conditions by supporting clients with their FX hedging strategies and decisions while maintaining a disciplined approach to credit risk. Corporate revenues grew by 20% to c. £64m (£53m), with client numbers increasing by 16% to 974 (2023: 838).
All overseas offices showed excellent YoY growth except Canada, which was flat. A new Canadian leadership team was installed in late 2023. Canada began to reflect the benefits of this change in 2024, with revenues growing sequentially in H2 over H1, giving confidence that the right structure is in place to return to growth in 2025. The collective growth rate of Alpha’s remaining overseas offices meanwhile was nearly 60%, highlighting the merit of the Group’s global expansion strategy.
Institutional 2024 revenues grew by c. 20% to c. £69m (2023: £57m).
At a divisional level, the Institutional FXRM team delivered another strong performance. Revenue increased 17% in the period, with client numbers increasing 33% to 311 (December 2023: 233).
Alternative Banking revenues increased by 20%, and account numbers increased to over 7,100 (2023: 6,467) despite the subdued levels of deal activity within the market and the knock-on effect this had on the need for accounts.
The Fund Finance team continues to see strong interest in its service and is winning increasingly larger value mandates, which has resulted in revenues increasing by over 130%.
Clive Kahn, CEO, commented:
“I am pleased to start my tenure as CEO by confirming strong growth and an impressive result, particularly given the challenging macro-economic backdrop. The fact that Alpha has produced such levels of growth in challenging economic times is the greatest accolade to the strength of our model and team, particularly with the strong cash generation aided by the continuing high-interest rate environment. The Group’s focus will be to build on the strong foundations already established, by maintaining investment in innovation to scale the business even further, whilst continuing to deliver high returns for shareholders.”