Alpha Group H1 2025: 34% revenue growth, resilient income mix, and Corpay deal on track
Alpha Group International’s interim numbers show a business firing in its core Corporate franchise, steady in Private Markets despite sector headwinds, and accelerating in Cobase. The headline: revenue up 34% to £86.2 million, total income up 17% to £125.4 million, and underlying profit before tax up 25% to £27.9 million. The proposed all-cash acquisition by Corpay progressed too, with shareholder approvals secured on 2 September and completion expected in Q4 2025, subject to regulatory approvals.
There is plenty to like here, with a few moving parts to understand – not least the distinction between reported profit and the company’s “underlying” view.
Key numbers investors should know
| Metric | H1 2025 | H1 2024 | Change |
|---|---|---|---|
| Revenue | £86.2m | £64.3m | +34% |
| Total income | £125.4m | £106.8m | +17% |
| Underlying PBT | £27.9m | £22.3m | +25% |
| Underlying PBT margin | 32% | 35% | -3pp |
| Statutory PBT | £48.5m | £60.8m | -20% |
| Underlying basic EPS | 49.7p | 37.1p | +34% |
| Net treasury income (NTI) | £39.2m | £42.4m | -7% |
| Adjusted net cash | £234.5m | £179.8m | +30% |
| Average client balances | £2.2bn | £2.1bn | +5% |
Quick jargon check: “Underlying” excludes items the Board views as non-core to trading, notably non-cash share-based payments, net interest earned on client balances (see NTI below), certain M&A and listing costs, and amortisation of purchased intangibles. NTI is interest earned on client and own funds; it can move with market rates and cash balances.
Corpay acquisition: where things stand
Alpha confirmed the Board-recommended, all-cash acquisition by Corpay. Shareholders have already voted in favour of the scheme and the acquisition on 2 September. Completion is expected in Q4 2025, subject to regulatory approvals. The consideration is not disclosed in this RNS. In my view, shareholder approval de-risks the path to completion, but it is not a done deal until the regulators sign off.
Corporate division: big step-up in client activity and revenue
The Corporate division delivered an excellent half, with revenue up 68% to £50.1 million. Client numbers in FX risk management (FXRM) rose 9% to 1,029, and average annualised revenue per client jumped 49% to £100k. Front Office headcount was up 38% to 148, supporting the “land and expand” strategy across eight global offices.
What changed? Management points to a sharp rise in FX volatility after heightened political events, which nudged more CFOs from “wait and see” to active hedging. That plays to Alpha’s strengths. The trade-off: underlying PBT margin dipped to 45% (from 48%) due to higher commissions on new wins – a healthy sign that growth is coming from fresh clients, albeit at a near-term cost.
Private Markets: resilient revenue, subdued deals, lower margin
Private Markets revenue edged up 2% to £34.1 million despite a tough backdrop and a five-year low in M&A deal activity. FXRM client numbers rose 23% to 332, and account numbers grew 6% to 7,431, but average revenue per FXRM client fell 25% to £89k as new cohorts onboard and macro headwinds persist. The division’s underlying PBT margin was 18% (down from 28%) as Alpha continued to invest in operations and fund finance softened.
Interest income still doing heavy lifting
The same rate environment squeezing deals helped NTI on client balances: £38.6 million (H1 2024: £41.8 million). Average Private Markets client balances were steady at around £2.2 billion through H1, with blended rates drifting lower from 3.6% in Q1 to 3.4% in Q2.
Cobase: traction building with clients and cross-sell
Cobase, Alpha’s treasury platform, posted 63% revenue growth to £2.1 million, and client numbers grew 45% to 245. Most new clients still come direct, but referrals from Alpha’s Corporate and Private Markets teams are now kicking in. The segment remains small but is scaling in the right direction.
Profit bridge: why statutory PBT fell while underlying rose
Statutory PBT fell 20% to £48.5 million, largely because of non-underlying items:
- £11.9 million non-cash charge related to the Founder Incentive Scheme (funded by shares from Morgan Tillbrook’s personal holding and therefore non-dilutive).
- £1.7 million non-contingent M&A fees linked to the Corpay transaction.
Strip those and other non-underlying items out, and underlying PBT was up 25% to £27.9 million. Underlying EPS increased 34% to 49.7p, underlining the strength in the core businesses.
Cash, liquidity and working capital mechanics
Cash and cash equivalents were £209.9 million at 30 June, with adjusted net cash of £234.5 million. The adjusted measure removes swings from collateral and mark-to-market items tied to client hedging, which can mask the underlying liquidity. Variation margin posted to banking counterparties rose significantly in the half, which is typical in volatile markets and explains some of the cash movement.
Governance tidying and dividends
Alpha spent time in H1 clearing up historic administrative issues around buybacks and interim dividends that had been made otherwise than in accordance with the Companies Act 2006. The company implemented remedial steps, including deeds of release approved at the May AGM and formalising historic purchases. It also paid a 14.0p final dividend for 2024 (£6.1 million) and does not intend to declare an interim dividend in September 2025.
Operational momentum at a glance
- Group Front Office headcount up 32% to 207, supporting future growth.
- Corporate FXRM clients up 9% to 1,029; Private Markets FXRM clients up 23% to 332.
- Private Markets account numbers up 6% to 7,431.
- Cobase clients up 45% to 245.
- New Corporate office launched in Austria; Board strengthened with a new Non-Executive Director in February.
My take: why this update matters
- Positive – Core engine running hot: The Corporate division’s 68% revenue growth and higher revenue per client are the standout. New-client commissions trimmed margins, but that is exactly the kind of cost you want to see when the top line is compounding.
- Mixed – Rate tailwind is easing: NTI fell to £39.2 million from £42.4 million as blended rates nudged down. Alpha still benefits from sizeable client balances, but investors should expect this line to be more rate-sensitive than the rest of the P&L.
- Negative – Private Markets margin pressure: Revenue is holding up, yet the 18% margin (from 28%) shows the headwinds are real. The counterpoint is clear client growth and mandate wins, which can convert when deal flow revives.
- Neutral – Stat vs underlying: The 20% drop in statutory PBT is largely accounting-driven and non-cash. Underlying EPS up 34% better reflects trading momentum.
- Deal watch – Corpay acquisition: With shareholder votes done, regulatory approval is the last hurdle. The RNS does not disclose the cash terms here, but completion in Q4 2025 is the stated expectation.
- Balance sheet strength: £234.5 million adjusted net cash and no debt give Alpha ample capacity to invest – and comfort while the deal process runs.
What to watch into H2 2025
- Regulatory timeline and any conditions for the Corpay deal.
- Corporate revenue durability if volatility cools, and whether margins rebuild as the new-cohort commission mix normalises.
- Private Markets pipeline conversion as M&A activity stabilises, and the trajectory of fund finance mandates.
- Direction of NTI as interest rates and client balances evolve.
Bottom line
Alpha has delivered a strong trading half, powered by Corporate FX risk management and supported by robust client balances. The numbers show a high-growth engine with sensible liquidity and a pragmatic approach to disclosure. If the Corpay acquisition completes as expected in Q4, shareholders may soon crystallise value; if not, the underlying business looks well placed with momentum, cash, and a growing client footprint.
