REG - Alfa Financial Soft - H1 Trading update

Alfa Financial Software HoldingsAnnouncement

20/07/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230720:nRST5702Ga&default-theme=true

RNS Number : 5702G  Alfa Financial Software Hldgs PLC  20 July 2023

20 July 2023

 

Alfa Financial Software Holdings PLC

H1 Trading update

Strong first half, full year expectations reiterated

 

Alfa Financial Software Holdings PLC ("Alfa" or the "Company"), a leading
developer of mission-critical software for the asset finance industry provides
this scheduled update on trading for the half year ended 30 June 2023. The
half-year results are expected to be announced on Thursday 31 August 2023.

The Board is pleased with the progress made during the first half of the year,
across all aspects of the business.  This has been reflected both in a strong
financial performance in the period and a robust pipeline looking forward.

 

Trading

The strong growth we saw in Q1 has continued through Q2.  We have continued
to deliver chargeable development days for customers. Last year chargeable
customer development was more weighted towards the second half. This year we
expect it will be more weighted towards the first half, with our second half
this year having a greater focus towards future product roadmap development as
we prepare to announce our next major version release - only the sixth in our
history. This will further strengthen our software and drive incremental sales
in future years. One-off licence payments were slightly up on H1 last year and
are still running at a relatively low level and so any incremental sales would
be an upside against the current position.

Double digit growth in Subscription revenues has continued along with good
growth in Services, benefiting from the strong growth in headcount last year.
Cash generation has remained strong.

 

Software and delivery highlights

We have continued to develop our software in the period.  We have made
progress in several eye-catching new areas, such as Alfa Compose and
Environmental Accounting, that will be headline items for our next major
version release due to be announced in the autumn. This has been accelerated
by improvements to the Alfa Development Model, including our Lisbon Smart Hub,
which is now fully up and running.

In the second quarter we have seen strong delivery for our customers with six
further go-live events, including a go-live in Mexico, a new country for Alfa.
This follows on from the eight go-live events in the first quarter. We have
also made good progress with starting to replicate the success of our European
partner program in the US, with a second US partner now onboard and
operational.

 

Pipeline and Outlook

We are doing paid work with four late-stage prospects, with the initial
go-live for one of these prospects expected in the coming months, which
illustrates how projects are increasingly moving towards agile implementations
with contracting running in parallel to execution.

In addition, we have won another UK Equipment Finance Start customer, which
was not already in our late-stage pipeline, and work with them has commenced,
demonstrating how these projects are not only quick to implement but also
quick to contract.

The strong H1 performance and the strength of the late-stage pipeline means we
remain confident of achieving our expectations for the full year. The strength
of the Group's intellectual property, aligned with its focused strategy and
increasingly robust business model gives the Board confidence in the Company's
ability to maintain its market-leading position, financial performance and
continued growth.

 

 

Andrew Denton, Chief Executive Officer of Alfa, said:

"I am delighted that we have continued to make good progress across all
aspects of our business in the first half of 2023 and this has been supported
by the strong financial performance. The strength of our order book, our sales
execution and our pipeline all give us confidence in our expectations for the
full 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

 Ed Cropley

 Barclays                                  +44 (0)20 7623 2323
 Robert Mayhew

 Tom MacDonald

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

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTBLGDRUBBDGXC