Shares in Alpha Group International PLC (AIM:ALPH) rose after the fintech published results and appointed financial sector veteran Dame Jayne-Anne Gadhia as chair designate as the company prepares to move from AIM to London's main market.
The figures showed revenues grew 12% last year to £110.4 million, as expected, with £186,000 from one month of Cobase, the group's first acquisition.
Total income increased 73% to £186 million and pre-tax profit 148% to £115.9 million, marginally better than the £115 million indicated in the last trading update.
On the outlook, the company said it expects markets to "slowly pick up" through 2024 with higher interest rates continuing to provide a significant bottom-line tailwind for the group.
At the same time, any easing of monetary policy may or may not release the brakes on currently suppressed activity levels of its corporate and institutional clients.
Gadhia, former Virgin Money boss from 2008 to 2018, will replace current chair Clive Kahn when his term ends at the company's 2025 AGM.
House broker Liberum said: "The market continues to underestimate the strength of Alpha’s business model and the cash generation that results."
Analyst Nick Anderson said the company is perfectly set up to "exploit the unbundling of the banking value chain" and its natural interest rate hedge "remains misunderstood, resulting in next to no value being ascribed to interest income".
Liberum's EPS estimates have been materially hiked to reflect an accounting change.
"Valuation remains compelling in absolute terms (15%+ free cash flow yield) and relative to Wise," the analyst said, reiterating a share price target of 2,675p.