Alpha Group International (LON: ALPH) unveiled its plan on Monday to initiate a share buyback initiative with a capital allocation of up to £20 million from its cash reserves.
The company will repurchase shares at a price of 0.2 pence each, reflecting a substantial 35.5 percent premium compared to Friday’s closing price.
According to the official announcement, “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.”
Alpha Group International has enlisted Liberum Capital Limited to manage the share buyback process on its behalf.
The company emphasized that the buyback program will be carried out within specific pre-established parameters.
These parameters 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.”
Alpha Group, listed in London, boasts a market capitalization of approximately £641.16 million. Notably, the buyback of shares could represent around 25 percent of the average daily trading volume, making it ineligible for any exemptions.
Alpha Group International is renowned for providing FX Risk Management and alternative banking solutions to corporate clients and institutions worldwide.
The company has consistently delivered impressive financial results, reporting robust revenue growth for several consecutive quarters. In 2021, it expanded its portfolio by introducing an alternative banking platform.
Furthermore, in the previous year, the company launched a new Fund Finance division and established two Corporate FXRM offices, one in Madrid and another in Munich.
Additionally, Alpha Group made its first acquisition by acquiring Cobase last year.
The decision to initiate the share buyback program closely follows the company’s announcement of remarkable financial performance, with revenue reaching £110 million, marking a substantial 12 percent increase.
Pre-tax profits also surged by an impressive 140 percent to approximately £115 million.