I’ve done a bit more digging on Alfa Financial Software Holdings (LON:ALFA) and thought I would post it as a specific discussion rather than leave people to find it the SCVR.
Please note, the following will only make sense if you read Paul's write up and comments on LON:ALFA in the SCVR below.
CHP Software and Consulting Ltd, own 65% of ALFA. Though beyond that I have to say I’ve found it difficult to be certain as to CHP’s exact size and structure.
One source indicates 300+ employees, others 10. It lays claim to be the software developer for ALFA but there is no company web site and nothing about careers (pretty essential in the S/w developer world). Which leaves me to conclude the headcount numbers are one and the same as ALFAs.
On the plus side CHP has £306m cash on its books so it looks to me like ALFA has even deeper cash buffers than Paul has indicated.
On the minus side, I am a little nervous if the software that is developed for ALFA is actually controlled, or worse owned by a third party. I’ve seen this structure before, but it was in place for tax reasons. Anyone know more?
I’ve also looked further at the trading update.
H1 – H1 Revenue forecast £38m+ vs £33.6m +13%
H1- H1 EBIT £10m+ vs £7.85 +27%
My instinct is this is going to run up. Disclosure bought on the trading update, however my in-price 112p is still under water.
