Alpha Group advances to LSE’s premium listing, eyes FTSE index

Foreign exchange service provider Alpha Group International plc (AIM: ALPH) today confirmed its upgrade to the premium list of the London Stock Exchange’s main market.

The firm, which initially listed on the LSE’s Alternative Investment Market (AIM) in 2017, announced on Thursday that it would transition its ordinary shares to be traded on the main market and be admitted to the LSE’s premium listing segment.

The AIM is known for its more flexible criteria for entrepreneurial companies regarding aspects such as minimum free float.

This move aligns with the company’s previously stated plans and involves cancelling its AIM listing effective from today, coinciding with its admission to the main market. The shift to the premium market segment, which imposes more stringent revenue requirements, is said to enable Alpha Group to expand its operations and qualify for inclusion in the FTSE index.

The UK-listed broker launched a share buyback program of £20 million earlier in January, which will be held in its treasury. The company was able to amass a total revenue of £110 million in 2023, up 27% from a year ago.

Profit before tax also increased by 140%, or £115 million, up from £47.2 million in FY 2022. The underlying profit before tax grew by 10% to about £42 million. Despite various market challenges, the company maintained a consistent underlying profit margin of 39%.

Another noteworthy aspect of Alpha Group’s financial performance was its other operating income from interest on client balances, which exceeded £73 million, well above the £9.3 million reported in FY 2022. Additionally, the company’s balance sheet and liquidity position remained very strong, with adjusted net cash increasing by over £60 million to more than £177 million.

During the year, the company launched a new Fund Finance division and opened new Corporate FXRM offices in Madrid and Munich.

Earlier in December, Alpha Group finalized its acquisition of Financial Transaction Services, operating as Cobase. The acquisition, initially announced in September, involves Alpha purchasing an 85% stake in Cobase for €9.4 million in cash, a transaction that was subject to approval by De Nederlandsche Bank, the central bank of the Netherlands.

The deal also includes provisions for Alpha to acquire the remaining 15% stake through a performance-based earn-out scheduled between 2025 and 2028.