Alpha Group International posted a 34% jump in
revenue to £86.2 million for the first half of 2025, driven by strong
performance in its corporate division as the financial services firm awaits
completion of its acquisition by Corpay Inc.
The London-listed company (LSE: ALPH), which
provides banking alternatives to corporate and private market clients, saw its
corporate division revenues surge 68% to £50.1 million compared
to £29.8 million in the same period last year. The growth came as
businesses increasingly turned to active currency risk management amid
prolonged macroeconomic uncertainty.
Clive Kahn, Source: Alpha Group
“Total revenues in the first half of the
year continued to show strong growth rates despite ongoing macroeconomic
uncertainty,” said Clive Kahn, Alpha’s Chief
Executive Officer. “Our Risk Management businesses benefited from
increased market volatility as well as benefiting from significant prior-year
investments, robust growth strategies, and market-leading teams.”
Related: New
CEO Inherits a Money-Making Machine as Alpha Group Reports £123.1M Profit
Alpha’s
acquisition by U.S. payments company Corpay received shareholder approval
in September and remains on track to complete in the fourth quarter, pending
final regulatory approvals.
Corporate Clients Drive
Revenue Acceleration
The corporate division’s performance reflected
what Alpha described as a shift in business behavior. Rather than waiting for
clarity amid ongoing macro uncertainty, companies have adapted to the new
normal and become more active in managing currency risk.
Corporate client numbers grew 9% to 1,029, while
average
annualized revenue per client jumped 49% to £100,000. The division expanded
its front office headcount by 38% to 148 people and opened a new office in
Austria, bringing its international presence to eight global offices.
However, profit margins in the division
compressed to 45% from 48% in the prior year as the company paid higher
commission costs on new business wins, which typically carry higher commission
rates than existing client revenue.
Key Financial Performance Overview
Metric
H1 2025
H1 2024
FY 2024
Revenue (£m)
86.2
64.3
135.6
Underlying
profit before tax (£m)
27.9
22.3
47.4
Statutory
profit before tax (£m)
48.5
60.8
123.1
Basic
earnings per share (p)
82.0
104.3
215.7
Underlying
basic earnings per share (p)
49.7
37.1
86.4
Private Markets Show
Resilience
Alpha’s private markets division posted more
modest growth, with revenues increasing 2% to £34.1 million despite what the
company called “suppressed market conditions.” The division serves
private equity, venture capital, real estate and other alternative investment
firms.
Client numbers in the division’s FX risk
management business grew 23% to 332, though average revenue per client dropped
25% to £89,000 as new clients came on board during challenging market
conditions. The fund finance business signed 24 mandates during the period, up
from 16 in the prior year.
Deal activity in private markets fell to a
five-year low during the first half, dampened by trade policy uncertainty and
broader market headwinds.
Segment Performance Breakdown
Segment
Revenue H1 2025 (£m)
Revenue H1 2024 (£m)
Underlying Profit H1 2025 (£m)
Underlying Profit H1 2024 (£m)
Margin H1 2025 (%)
Margin H1 2024 (%)
Corporate
50.1
29.8
22.5
14.3
45
48
Private Markets
34.1
33.3
6.0
9.4
18
28
Cobase
2.1
1.3
-0.6
-1.4
-28
-113
Treasury Income Provides
Buffer
Net treasury income from client and own balances
totaled £39.2 million, down from £42.4 million in the prior year but still
providing a substantial income stream. The revenue comes from interest earned
on client balances held across Alpha’s accounts and payments business.
Client balances averaged £2.2 billion during the
second quarter, unchanged from the first quarter, with blended interest rates
of 3.4% compared to 3.9% in the same period last year.
A few months ago, the financial services
provider said it was considering
expansion into Singapore and the United States as part of its long-term
growth strategy.
The soon-to-be owner of Alpha, Corpay, has
recently been focusing not only on acquisitions but also on partnerships with
football clubs, as shown by its agreements with New
Zealand Football and West
Ham.
Alpha Group International posted a 34% jump in
revenue to £86.2 million for the first half of 2025, driven by strong
performance in its corporate division as the financial services firm awaits
completion of its acquisition by Corpay Inc.
The London-listed company (LSE: ALPH), which
provides banking alternatives to corporate and private market clients, saw its
corporate division revenues surge 68% to £50.1 million compared
to £29.8 million in the same period last year. The growth came as
businesses increasingly turned to active currency risk management amid
prolonged macroeconomic uncertainty.
Clive Kahn, Source: Alpha Group
“Total revenues in the first half of the
year continued to show strong growth rates despite ongoing macroeconomic
uncertainty,” said Clive Kahn, Alpha’s Chief
Executive Officer. “Our Risk Management businesses benefited from
increased market volatility as well as benefiting from significant prior-year
investments, robust growth strategies, and market-leading teams.”
Related: New
CEO Inherits a Money-Making Machine as Alpha Group Reports £123.1M Profit
Alpha’s
acquisition by U.S. payments company Corpay received shareholder approval
in September and remains on track to complete in the fourth quarter, pending
final regulatory approvals.
Corporate Clients Drive
Revenue Acceleration
The corporate division’s performance reflected
what Alpha described as a shift in business behavior. Rather than waiting for
clarity amid ongoing macro uncertainty, companies have adapted to the new
normal and become more active in managing currency risk.
Corporate client numbers grew 9% to 1,029, while
average
annualized revenue per client jumped 49% to £100,000. The division expanded
its front office headcount by 38% to 148 people and opened a new office in
Austria, bringing its international presence to eight global offices.
However, profit margins in the division
compressed to 45% from 48% in the prior year as the company paid higher
commission costs on new business wins, which typically carry higher commission
rates than existing client revenue.
Key Financial Performance Overview
Metric
H1 2025
H1 2024
FY 2024
Revenue (£m)
86.2
64.3
135.6
Underlying
profit before tax (£m)
27.9
22.3
47.4
Statutory
profit before tax (£m)
48.5
60.8
123.1
Basic
earnings per share (p)
82.0
104.3
215.7
Underlying
basic earnings per share (p)
49.7
37.1
86.4
Private Markets Show
Resilience
Alpha’s private markets division posted more
modest growth, with revenues increasing 2% to £34.1 million despite what the
company called “suppressed market conditions.” The division serves
private equity, venture capital, real estate and other alternative investment
firms.
Client numbers in the division’s FX risk
management business grew 23% to 332, though average revenue per client dropped
25% to £89,000 as new clients came on board during challenging market
conditions. The fund finance business signed 24 mandates during the period, up
from 16 in the prior year.
Deal activity in private markets fell to a
five-year low during the first half, dampened by trade policy uncertainty and
broader market headwinds.
Segment Performance Breakdown
Segment
Revenue H1 2025 (£m)
Revenue H1 2024 (£m)
Underlying Profit H1 2025 (£m)
Underlying Profit H1 2024 (£m)
Margin H1 2025 (%)
Margin H1 2024 (%)
Corporate
50.1
29.8
22.5
14.3
45
48
Private Markets
34.1
33.3
6.0
9.4
18
28
Cobase
2.1
1.3
-0.6
-1.4
-28
-113
Treasury Income Provides
Buffer
Net treasury income from client and own balances
totaled £39.2 million, down from £42.4 million in the prior year but still
providing a substantial income stream. The revenue comes from interest earned
on client balances held across Alpha’s accounts and payments business.
Client balances averaged £2.2 billion during the
second quarter, unchanged from the first quarter, with blended interest rates
of 3.4% compared to 3.9% in the same period last year.
A few months ago, the financial services
provider said it was considering
expansion into Singapore and the United States as part of its long-term
growth strategy.
The soon-to-be owner of Alpha, Corpay, has
recently been focusing not only on acquisitions but also on partnerships with
football clubs, as shown by its agreements with New
Zealand Football and West
Ham.
