Yahoo Finance Alpha Growth plc (LON:ALGW) Could Be Less Than A Year Away From Profitability
Alpha Growth plc (LON:ALGW) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Alpha Growth plc focuses on providing advisory services, strategies, performance monitoring, and analytical services to holders of senior life settlement assets in North America. With the latest financial year loss of UK£1.2m and a trailing-twelve-month loss of UK£1.3m, the UK£13m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Alpha Growth's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
See our latest analysis for Alpha Growth
Expectations from some of the British Capital Markets analysts is that Alpha Growth is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of UK£588k in 2023. The company is therefore projected to breakeven around 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 42% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Alpha Growth's growth isn’t the focus of this broad overview, though, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we’d like to point out is that Alpha Growth has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on Alpha Growth, so if you are interested in understanding the company at a deeper level, take a look at Alpha Growth's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further research:
Historical Track Record: What has Alpha Growth's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Alpha Growth's board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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