Is Alpha Group a profitable investment?

Alpha Group Expands Horizons with Acquisition and Growth

Alpha Group International, a technology company listed on the London Stock Exchange (LSE: ALPH), has been making waves in the financial industry. Since graduating to the main market in May, the company's stock has seen a 20% rise, currently trading at 2,560p.

The company, which focuses on using technology to help companies and institutions manage foreign exchange (forex) risk, has been experiencing significant growth. In 2020, Alpha's sales were more than four times the level of 2018, and profits increased nearly tenfold compared to the same period. The part of Alpha's business serving the alternative investment industry currently accounts for 29% of revenue.

Alpha Group is not resting on its laurels. The company is expanding its business to provide payment services to the alternative investments industry, including hedge funds, private equity, and venture capital firms. This move is expected to contribute to the diversification of its business, as demonstrated by its recent acquisition of Cobase.

Cobase is a bank-connectivity company that establishes links between companies' accounting systems and their banks. This acquisition is expected to further strengthen Alpha's position in the market. The company's return on capital employed is over 40%, reflecting its efficiency and profitability.

However, Alpha's shares have been volatile over the past three years. A suggested stop-loss for Alpha's shares is 1,660p. The company has no debt, trading at a valuation of 16 times 2025 earnings.

Alpha Group believes that a more bespoke approach will win it a large amount of business in the alternative investments industry. The company is working to grow its core risk-management business and is also looking to provide opportunities for cross-selling through its acquisitions.

As of now, the bank and financial services provider listed on the London Stock Exchange's main market since May 2021, focusing on risk management and payment services for the alternative investments industry, is not explicitly identified in the provided search results.

In conclusion, Alpha Group International is a company on the rise, with significant growth in sales and profits, a successful acquisition, and a focus on expanding its business to serve the alternative investments industry. Despite its volatility, the company's strong performance and strategic moves make it an interesting investment opportunity for many.