An interesting RNS slipped through last week. The essence of it being that LON:ALFA revenue/profit for 2020 is going to be +£4m due to accounting adjustments. This equates to it's forecast profit rising to ~£17m from ~£13m.
This will put ALFA on a more modest P/E and further emphasises how difficult it can be to value software companies on a conventional basis.
I doubled down on ALFA in Feb and August last year and with the Special Dividend have now, as speculated, doubled my money on those investments. I was going to take some profits when it got to 130p but I am now thinking I will will wait and maybe even top up. Rationale, ALFA is still cheap on an historical basis, has a super rock solid balance sheet, is likely to either pay another special dividend or resume regular dividends and has returned to growth. I think we could see a return to 200p
I would be interested in the views of other holders.
