Alpha Group International (LON: ALPH) announced today (Monday) its intentions to launch a share buyback program with a capital allocation of up to £20 million from its cash reserves. The company will purchase the shares at 0.2 pence a piece, which is about a 35.5 percent premium on its closure of Friday.

Alpha Group Launches Share Buyback

“The Buyback Programme will be effective from the date of this announcement [today] and will expire on the date of the Company's next Annual General Meeting, or earlier, if the maximum aggregate consideration of £20 million has been reached,” the official announcement stated. It has contracted Liberum Capital Limited to handle the share buyback process on its behalf.

The company highlighted that the buyback program will be effected within certain pre-set parameters. This will include a “maximum price paid per Ordinary Share shall be the higher of 105 percent of the average trailing 5-day mid-market closing price or an amount equal to the higher of the price of the last independent trade of an Ordinary Share and the highest current independent bid for an Ordinary Share.”

Listed in London, Apha Group has a market cap of about £641.16 million. The company pointed out that the buyback of shares may represent about 25 percent of the average daily trading volume, thus it would not benefit from any exemptions.

Expanding Business

Alpha Group’s offerings include FX Risk Management and alternative banking solutions to corporates and institutions internationally. It is performing exceptionally well and has recorded solid gains in revenue for several consecutive quarters. It expanded its offerings by launching an alternative banking platform in 2021.

It further launched a new Fund Finance division last year and opened two Corporate FXRM offices: one in Madrid and another in Munich. The group additionally acquired Cobase last year, which was its first acquisition.

The share buyback decision followed a week after the company's announcement regarding its impressive financial results when generating revenue of £110 million, an increase of 12 percent. The pre-tax profits also jumped 140 percent to about £115 million.

Participate in Our Fraud Survey: Your Opinion Matters!

We invite you to participate in our joint survey conducted by FXStreet and Finance Magnates Group, which explores prevalent online financial fraud types, platforms used for fraudulent activities, effectiveness of countermeasures, and challenges faced by companies in tackling such fraud. Your valuable insights will help inform future strategies and resource allocation in combating financial fraud.

Social Media Scams: Help Shape the Fight with Your 2024 Survey Participation