Alpha Strategic PLC - Half Yearly Report

RNS Number : 9479J

Alpha Strategic PLC

11 December 2008

Alpha Strategic PLC

(“Alpha Strategic” or the “Company”)

Interim Results for the period ended 30th September 2008

Highlights

· Excellent performance by the Global Futures Fund of over 19% in calendar year to date.

· Low overheads kept under strict control.

· Cash and liquid assets balance of £2.3 million.

· Management team strengthened.

To obtain a copy of this report, and for comprehensive

information on the company and its directors, please

visit our website at:

www.alphastrategic.co.uk

Enquiries:

Alpha Strategic plc Colin Barrow, Chairman Nicola Meaden-Grenham, Chief Executive Officer	Tel: 020 7222 3005
Evolution Securities - Stuart Andrews	Tel: 020 7071 4300

Alpha Strategic PLC

(“Alpha Strategic” or the “Company”)

Interim Results for the period ended 30th September 2008

Dear Shareholder

During the last 6 months your company has continued to pursue its stated business model of acquiring revenue holdings in the highest quality hedge fund management businesses with a view to combining those income streams to achieve diversification and hence value in the market.

Our first half has been set against the backdrop of global financial turmoil the like of which we have never seen. As banks collapsed across the world, markets plunged, and governments reached for their wallets, you will be pleased to know that the Global Futures Fund more than held its own, with estimated year to date returns to 1^st December of between approximately 19% and 22% across the various share classes available.

We received a good level of performance fee for our first quarter, but performance then dipped below the high water mark for the second quarter. Consequently the Company has recorded a small loss for the half on turnover of £181,000. Pleasingly performance is now well above high watermark as I write, and hence we anticipate performance fees resuming for the second half, notwithstanding that past performance is not indicative of future results.

Unsurprisingly, with a global liquidity crisis, and despite stellar performance, the Global Futures Fund, which offers weekly liquidity, has experienced some redemptions as so many investors need cash to fund losses elsewhere. Hence funds under management currently stand at approximately USD $33.8m, although due to recent favourable sterling dollar exchange rate movements the impact of redemptions should be limited.

During the half, our former chief executive, Kit Malthouse handed over the day-to-day reins to Nicola Meaden as new chief executive, and moved to the position of finance director.

Despite the uncertain times, or perhaps because of them, we have seen a significant increase in interest in the Alpha model from potential partners and a favourable change in attitude by hedge fund managers. We pursue all relationships and opportunities with vigour and we are engaged in a number of encouraging discussions.

A low cost base combined with the exceptional performance of Winton Capital Management Limited in their conduct of the Global Futures Fund, mean that the Board believes Alpha is well placed to benefit from developments in the hedge fund industry in the months to come.

Colin Barrow

Chairman

11 December 2008

Alpha Strategic PLC
Consolidated Income Statement
For the 6 months ended 30 September 2008
	Six Months	Six Months	Year
	ended	ended	ended
	30 September	30 September	31 March
	2008	2007	2008
	(Unaudited)	(Unaudited)	(Audited)
	£'000	£'000	£'000

Revenue	181	249	669

Administrative expenses
Other administrative expenses	(245)	(243)	(505)
Aborted acquisition costs	-	-	(239)
	(245)	(243)	(744)

(Loss)/Profit from operations	(64)	6	(75)

Finance income
Interest receivable and similar income	49	59	115

(Loss)/Profit before tax	(15)	65	40

Tax expense	-	(14)	(12)

(Loss)/profit for the period attributable to equity holders of the Company	(15)	51	28

Basic (loss)/earnings per share	(0.46) p	1.51 p	0.85 p
Diluted (loss)/earnings per share	(0.46) p	1.49 p	0.76 p

Alpha Strategic PLC
Consolidated Balance Sheet
As at 30 September 2008
	As at	As at	As at
	30 September	30 September	31 March
	2008	2007	2008
	(Unaudited)	(Unaudited)	(Audited)
	£'000	£'000	£'000
Assets
Non-current assets
Intangible assets	415	415	415
Property, plant and equipment	13	2	8

Total non-current assets	428	417	423

Current assets
Trade and other receivables	56	158	348
Available-for-sale financial assets	1,935	1,990	1,891
Cash and cash equivalents	368	283	163

Total current assets	2,359	2,431	2,402

Total assets	2,787	2,848	2,825

Liabilities
Current liabilities
Trade and other payables	(60)	(95)	(83)
Current tax liabilities	(12)	-	(12)

Total liabilities	(72)	(95)	(95)

Total net assets	2,715	2,753	2,730

Capital and reserves attributable to the equity holders of the Company
Share capital	83	83	83
Share premium reserve	2,649	2,649	2,649
Merger reserve	323	323	323
Retained earnings	(340)	(302)	(325)

Total capital and reserves	2,715	2,753	2,730

Alpha Strategic PLC
Consolidated Cash Flow Statement
For the 6 months ended 30 September 2008
	Six Months	Six Months	Year
	ended	ended	ended
	30 September	30 September	31 March
	2008	2007	2008
	(Unaudited)	(Unaudited)	(Audited)
	£'000	£'000	£'000
Cash flows from operating activities
(Loss)/Profit after tax for the period	(15)	51	28
Finance income	(49)	(59)	(115)
Tax expense	-	14	12
Depreciation	1	-	1

Cash flows from operating activitiesbefore changes in working capital	(63)	6	(74)

Decrease/(increase) in trade and other receivables	292	(119)	(309)
(Decrease)/increase in trade and other payables	(23)	28	30

Cash generated/(used) by operating activities	206	(85)	(353)

Cash flows from investing activities
Purchases of plant and equipment	(6)	(2)	(9)
Interest received	49	59	115

Cash flow from investing activities	43	57	106

Net increase/(decrease) in cash and cash equivalents	249	(28)	(247)
Cash and cash equivalents at beginning of period	2,054	2,301	2,301

Cash and cash equivalents at end of period	2,303	2,273	2,054
Cash and cash equivalents comprise:
Available-for-sale financial assets	1,935	1,990	1,891
Cash	368	283	163
	2,303	2,273	2,054

Alpha Strategic PLC
Consolidated Statement of Changes in Equity
For the 6 months ended 30 September 2008
	Share	Share	Share	Merger	Retained	Total
	capital	capital	premium	reserve	earnings	equity
		‘A’ shares
	£'000	£’000	£'000	£'000	£'000	£'000
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)

At 1 April 2007	33	50	2,649	323	(353)	2,702

Profit for the period	-	-	-	-	51	51

At 30 September 2007	33	50	2,649	323	(302)	2,753

Loss for the period	-	-	-	-	(23)	(23)

At 31 March 2008	33	50	2,649	323	(325)	2,730

Loss for the period	-	-	-	-	(15)	(15)

At 30 September 2008	33	50	2,649	323	(340)	2,715

Share capital is the amount subscribed for ordinary shares and “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 amount subscribed for share capital over the nominal value of ordinary shares issued in respect of the acquisition of Winton Advisers Limited in accordance with the Companies Act 1985.

Retained earnings represent cumulative losses of the Group attributable to equity holders. There were no changes in equity in the prior year other than the loss for the period.

Alpha Strategic PLC

Notes to the interim results

For the 6 months ended 30 September 2008

1 The Group

The Group invests in first division hedge fund managers to build a diversified portfolio of income streams.

The Company is a public limited company incorporated and domiciled in England and Wales.

The Company has its listing on the Alternative Investment Market (“AIM”) of the London Stock Exchange.

2 Basis of preparation

These unaudited consolidated interim financial statements are for the six month period ended 30 September 2008. They do not include all the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 March 2008, which were prepared under International Financial Reporting Standards (“IFRS”) as adopted by the European Union (“EU”).

These interim consolidated financial statements have been prepared in accordance with accounting policies consistent with those set out in the Group’s financial statements for the year ended 31 March 2008 and are consistent with the accounting policies the Group will use to prepare its financial statements for the year ended 31 March 2009.

The comparative amounts in these interim consolidated financial statements include extracts from the Group’s financial statements for the year ended 31 March 2008. These extracts do not constitute statutory accounts under section 240 of the Companies Act 1985 (the “Act”).

The financial information for the full preceding period is basedon the statutory accounts for the period ended 31 March 2008. Those accounts, onwhich the auditors issued an unqualified opinion,have been delivered to the Registrar of Companies.

3 Dividends

No dividend is proposed for the six months ended 30 September 2008.

4 (Loss)/earnings per share

The basic loss per share has been calculated by dividing the loss for the period of £15,000 (six months to 30 September 2007: profit of £51,000; year to 31 March 2008: profit of £28,000) by the weighted average number of ordinary shares, 3,308,500 (six months to 30 September 2007: 3,308,500; year to 31 March 2008: 3,308,500) in issue during the period.

Diluted earnings per share for the six months to 30 September 2008 is the same as the basic loss per share as the inclusion of conversion rights and warrants would have an anti-dilutive effect on the calculation.

The comparatives reported are based upon the net profit after tax attributable to ordinary shareholders for the six months to 30 September 2007 £51,000 and the year to 31 March 2008 £28,000 and a weighted average number of ordinary shares in issue during those periods, as adjusted for the maximum shares that could be in issue following conversion of the A ordinary shares and allotments under the warrants, for the six months to 30 September 2007: 3,356,585 and for the year ended 31 March 2008 3,692,408.

INDEPENDENT REVIEW REPORT TO ALPHA STRATEGIC PLC

Introduction

We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2008 which comprises the consolidated income statement, consolidated balance sheet, consolidated cash flow statement,consolidated statement of changes in shareholders' equity, and related notes.

We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

Directors’ responsibilities

The interim report, including the financial information contained therein, is the responsibility of and has been approved by the directors. The directors are responsible for preparing the interim report in accordance with the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market which require that the half-yearly report be presented and prepared in a form consistent with that which will be adopted in the company's annual accounts having regard to the accounting standards applicable to such annual accounts.

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Our report has been prepared in accordance with the terms of our engagement to assist the company in meeting the requirements of the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market and for no other purpose. No person is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of our terms of engagement or has been expressly authorised to do so by our prior written consent. Save as above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all such liability

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, ‘‘Review of Interim Financial Information Performed by the Independent Auditor of the Entity’’, issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2008is not prepared, in all material respects, in accordance with the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market.

BDO Stoy Hayward LLP

Chartered Accountants and Registered Auditors

London

11^th December 2008

This information is provided by RNS

The company news service from the London Stock Exchange

RNS news service provided by Hemscott Group Limited.