REG - Alfa Financial Soft - Q1 Trading update

Alfa Financial Software HoldingsAnnouncement

30/04/2024 07:00

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RNS Number : 4678M  Alfa Financial Software Hldgs PLC  30 April 2024

30 April 2024

 

Alfa Financial Software Holdings PLC

Q1 Trading update

Strong growth in TCV, full year expectations unchanged

 

Alfa Financial Software Holdings PLC ("Alfa" or the "Company"), a leading
developer of mission-critical software for the asset finance industry provides
an update on trading for the first quarter of the year ended 31 March 2024.

 

Strong operational performance

In the first quarter we have seen excellent delivery for our customers with
seven deliveries comprising one v4 to v5 upgrade and six regular
upgrades.

We have continued to progress the Alfa Systems 6 launch which covers ten new
modules and is being released in six functional instalments. In the first
quarter of 2024 we released the second and third instalments:

·      Total Capability, which includes important additions to
Originations functionality, and opens the functionality up to the US Auto
market which increases our addressable market.

·      Sustainability, which includes Scope 3 emissions reporting and
pay per use capability.

 

Encouraging development of pipeline

Our pipeline has continued to develop strongly since the announcement of our
FY 23 results last month.

We have converted one large US automotive prospect and one very large
multi-country European equipment prospect, both on Alfa Cloud resulting in a
strong boost to TCV which is up 15% to £190m from £165m at December 2023.

We have also continued the momentum in the late-stage pipeline with one new
prospect bringing the current total to ten. We are working with six of these,
up from five at the time of our FY23 results announcement. We remain very
confident in the overall strength of the pipeline from early stage through to
late stage.

 

Q1 trading as expected, expectations unchanged

Trading in Q1 was in line with expectations and overall we continue to expect
mid to high single digit revenue for the year as a whole.

As previously highlighted 2023 revenue performance was unusually strongly
first half weighted. We entered 2024 expecting revenue performance to revert
to a more normal pattern of second half weighting. In line with these
expectations, revenue for the first quarter of £26m was down (2)% on a
constant currency basis versus a very strong quarter last year. This was due
to lower services revenues as new projects ramp up and lower software revenues
as we have focused on investing and delivering Alfa Systems 6 functionality.
Subscription revenue has continued to show strong mid-teens percentage growth.

 

Andrew Denton, Chief Executive Officer of Alfa, said:

"We have had a strong start to the year, securing two exciting new customers
and starting work with a number of prospective clients in the late stage
pipeline. At the same time, we continue to invest in the competitive
differentiation of our product with three of the six instalments of Alfa
Systems 6 launched to date. Additionally, we continue to see strong sequential
growth in our subscription revenue stream. As a result, we are well placed to
achieve our expectations for the year."

 

 

Enquiries

 

 Alfa Financial Software Holdings PLC      +44 (0)20 7588 1800
 Andrew Denton, Chief Executive Officer

 Duncan Magrath, Chief Financial Officer

 Andrew Page, Executive Chairman

 Teneo                                     +44 (0)20 7353 4200
 James Macey White

 Victoria Boxall

 Barclays                                  +44 (0)20 7623 2323
 Robert Mayhew

 Anusuya Gupta

 Investec                                  +44 (0)20 7597 4000
 Patrick Robb

 Virginia Bull

 

 

Notes to Editors

 

Alfa has been delivering software systems and services to the global asset and
automotive finance industry since 1990.  Our agile methodologies and
specialised knowledge of asset and automotive finance enables the delivery of
large software implementations and highly complex business change projects.
With an excellent delivery track record now into its fourth decade, Alfa's
experience and performance is unrivalled in the industry.

 

Alfa Systems, our class-leading technology platform, is at the heart of some
of the world's largest asset and automotive finance companies. Alfa Systems
supports both retail and corporate business for auto, equipment, wholesale and
dealer finance on a multijurisdictional basis, including leases/loans,
originations and servicing. A cloud-native, end-to-end solution with
integrated workflow and automated processing using business rules, Alfa
Systems provides compelling solutions to asset finance companies.

 

Alfa Systems is currently live in 37 countries.  Alfa has offices in Europe,
Australasia and North America.  For more information, visit
www.alfasystems.com (http://www.alfasystems.com) .

 

 

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