Alpha Group reports strong results, but cautious about interest rates

(Sharecast News) - Fintech and consultancy group Alpha Group International reported double-digit growth across the board for 2023 and said that 2024 has started well, but sounded a note of caution about how the year will play out as monetary policy begins to ease.

Higher interest rates have generated significant net treasury income for the company - coming in at £73m for 2023, up from £9.3m the year before - but have also worked to suppress underlying trading activity.

"While higher interest rates will continue to provide a significant bottom-line tailwind for the group, driving exceptional levels of net treasury income, we do not know to what extent any easing of monetary policy will release the brakes on currently suppressed activity levels of both our corporate and institutional clients," said chief executive Morgan Tillbrook.

Group revenues in 2023 were up 12% at £110.4m, with FX Risk Management revenues rising 10% to £76.3m and Alternative Banking revenues jumping 18% to £33.9m.

Underling pre-tax profit, which excludes things like one-off costs as well as net treasury income, rose 11% to £43m.

The company, which intends to move from AIM to the premium list of the main market this year, declared a final dividend of 12.3p per share, taking the total dividend for the year to 16p, up from 14.4p previously.