Alpha Strategic PLC

Audited results

for the year ended 31 March 2010

Financial highlights

. Second acquisition completed with guaranteed income in the first year.

· IKOS Asset Management joins Winton Capital as Alpha Strategic shareholder.

· Revenue rises following acquisition to £441,000 (2009: £342,000).

· 23% Net Asset growth to £3.2 million (2009: £2.6 million).

· IFRS requirement to amortise guaranteed G10 income on receipt widens loss per share, despite good overhead control.

· Healthy cash and debtor balance at £1.3 million (2009: £2.2 million).

· Global Futures Fund has disappointing year, but bounces back in 2010/11.

· G10 Currency Fund continues to perform well.

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Chairman's statement

Dear Shareholder,

The company is pleased to announce its final results to year end 31 March 2010.

The most significant event during the year was the agreement that Alpha Strategic plc (the Company) concluded with IKOS Asset Management (IKOS) in July 2009. IKOS has been a leading global alternative investment manager for many years and we are extremely pleased to strengthen the Company's thesis with the IKOS agreement.  Despite the uncertain and volatile economic and financial climate, in the nine months to the end of March 2010 the IKOS G10 Currency Fund (G10 Fund) delivered strong performance of an estimated 17.66%. The G10 Fund was awarded the 2009 EuroHedge award for the best performing fund in the Managed Futures and Currency category. Calendar year to date 2010 is proving to be another positive year with the G10 Fund up an estimated 16% in the first six months.  

Having delivered very strong performance in 2008, Winton produced their first negative calendar year of performance in 2009.  For the twelve months to the end of March 2010 the Global Futures Fund (GFF) was down an estimated 2.40%.  However, performance in 2010 is bouncing back and GFF is up 6.21% in the six months to the end of June. As you may recall, assets under management shrank in early 2009 as investors took advantage of GFF's then weekly liquidity to gather cash.  GFF's liquidity terms changed on 1 July 2010 from weekly to daily.  The effect of this is to substantially broaden the range of investors, both private and institutional, to whom GFF can be offered. Despite the disappointing performance during most of last year, GFF's performance continues to outperform the Swiss stock market index.

From a financial point of view the company has performed satisfactorily during the year. Following the acquisition from IKOS, our income rose to £441,000 (2009: £342,000) and our net assets increased substantially to £3.2 million (2009: £2.6 million). This net asset figure would have been higher were it not for the requirement under IFRS for us to amortise the income guaranteed from the G10 Fund as it is received. This treatment served to both reduce net assets and widen the reported trading loss. Absent this debit, our overhead control has been good with a marginal increase in running costs to £569,000 (2009: £515,000). Shareholders will be aware that we used some of our cash pile to effect the most recent acquisition and hence the balance fell to a nevertheless still healthy £1.1 million (2009: £2.1 million).

We have recently had a couple of changes to our board.  On 17 June 2010, the Company accepted the resignation of Colin Clark as a non-executive Director, for personal reasons. On behalf of the board I would like to thank Colin most sincerely for his dedicated and significant contribution during his time with the Company, and wish him well for the future. Also on 17 June we were delighted to welcome Florence Lombard as a non-executive Director. Ms Lombard brings a wealth of knowledge and understanding of the investment services industry and her expertise will be an extremely valuable resource for the Company.

The Company remains committed to its thesis of building a diversified portfolio of income streams acquired from top quality investment managers. The Alpha Strategic model continues to be actively marketed and discussions, both early stage and advanced, are in progress with a number of investment managers. The Board is confident in the longer term prospects for the Company and that significant progress will be made to bring some of these discussions to successful completion, thereby delivering growth in both earnings and shareholder value.

Colin Barrow

Chairman

Share Capital is the amount subscribed for ordinary shares at nominal value. Share Capital 'A' shares is the amount subscribed for 'A' ordinary shares at nominal value.

Share premium represents the excess of the amount subscribed for share capital over the nominal value of these shares net of share issue expenses.

The merger reserve comprises the excess of the amount subscribed for share capital over the nominal value of ordinary shares issued in respect of the acquisition of subsidiaries in accordance with the merger relief provisions of the Companies Act 1985 and the Companies Act 2006.

Accumulated deficit represent cumulative losses of the Group attributable to equity holders.

1.  Basis of preparation

Whilst the financial information included in this announcement has been prepared in accordance with International Financial Reporting Standards (IFRS), this announcement does not contain sufficient information to comply with IFRS.  The Company will publish full financial statements that comply with IFRS in July 2010.

The financial information set out in the announcement does not constitute the Company's statutory accounts for the year ended 31 March 2010 or the year ended 31 March 2009. The financial information for the year ended 31 March 2009 is extracted from the statutory accounts of Alpha Strategic plc.  The auditors, BDO LLP, reported on those accounts; their report was unqualified and did not contain a statement under section 237(2) or 237(3) of the Companies Act 1985.

The summarised balance sheet at 31 March 2010 and the summarised income statement, summarised cash flow statement and associated notes for the year then ended have been extracted from the group's financial statements. Those financial statements have not yet been delivered to the Registrar.

The 2010 accounts have been prepared on a basis consistent with the accounting policies set out in the 2009 accounts,except for the adoption of IAS 1 Revised, Presentation of Financial Statements, and IFRS 8, Operating Segments.

The IASB has issued the following revised and updated standards that are applicable to the Group and that resulted in changes in presentation for this accounting period; IAS 1 (revised) 'Presentation of financial statements' and IFRS 8 'Operating Segments'.

IAS 1 (revised) updates the presentation of the key statements of performance and position for the Group.

IFRS 8 introduces new requirements for segmental reporting to be based on the information provided to the Chief Operating Decision Maker (CODM). It also introduces additional disclosure and reconciliation requirements.

2.  Loss per share

The calculation of the basic loss per share is based upon the loss after tax attributable to ordinary shareholders of £393,000 (2009: loss £160,000) and a weighted average number of shares in issue for the year of 4,188,533 (2009: 3,308,500).

The diluted loss per share in 2010 and 2009 is the same as the basic loss per share as the losses in the years have an anti-dilutive effect.

3.  Dividend

The directors do not recommend a dividend for the year.

4.  Copies of the financial statements

Copies of the financial statements will be available on the company website, www.alphastrategic.co.uk, in due course or can be obtained by contacting the Company Secretary at 66 Buckingham Gate, London SW1E 6AU.