REG - Alfa Financial Soft - Q1 26 Trading update

Alfa Financial Software HoldingsAnnouncement

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RNS Number : 4637C  Alfa Financial Software Hldgs PLC  30 April 2026

30 April 2026

 

Alfa Financial Software Holdings PLC

Q1 26 Trading update

Trading in line with expectations

 

Alfa Financial Software Holdings PLC ("Alfa" or the "Company"), a leading
developer of mission-critical software for the asset finance industry provides
a scheduled update on trading for the first quarter ended 31 March 2026 (the
"quarter" or "Q1").

 

Robust pipeline & TCV

 

We converted one prospect into a win during the quarter and now have nine
prospects in our late-stage pipeline. Alfa is the preferred supplier with
seven of these prospects and is conducting paid work for four of them.

 

The win was for the Canadian operations for a global OEM. This is a new
implementation and includes the retail auto and commercial fleet lease and
loan book. We currently have live operations for this global automotive OEM in
three other countries and are doing paid work on a new multi-country program
in another region.

 

Total Contract Value ("TCV") at 31 March 2026 was £232.4m, up 2% in the
quarter. TCV benefitted from the win noted above which offset work executed in
the quarter. Delivery TCV grew 7%, Subscription TCV grew 1% with Software
Engineering TCV down 5%.

 

In line trading

 

Key financial highlights for Q1:

·    Revenue of £31.9m in the quarter, up 3% versus a very strong quarter
last year.

·    Constant currency revenue growth of 5% in line with management's
expectations.

·    Continued strong growth in Subscription revenues, up 13% versus Q1
last year.

·    Delivery revenues grew 8% versus Q1 last year.

·    Software Engineering revenues as expected were down 35% versus a very
strong quarter last year.

 

Continued strong operational execution

 

In the quarter we had a successful go-live for a long-standing customer who
upgraded from v4 onto AS6. The go-live involved migrating portfolios in two
different countries onto a single segregated instance on Alfa Cloud, allowing
them to simplify their own internal systems infrastructure along with the
product benefits of moving onto AS6. This further reinforces Alfa's ability to
deliver complex, multi-country migrations at scale on Alfa Cloud.

 

We also continue to strengthen our product leadership, including additional AI
product features and use cases, such as agentic integration.

 

Outlook

 

We are pleased with the combination of the late-stage pipeline and TCV and
continue to see good activity in the early-stage pipeline. We are conscious of
the uncertainties in the global political and economic environment, and whilst
there is no direct impact on our business we remain alert to potential changes
in discretionary spending and the impact of FX. Notwithstanding the
macroeconomic backdrop the Board is confident of meeting expectations for the
year.

 

Andrew Denton, Chief Executive Officer

 

"I am pleased that we have made a good start to 2026. We are operating against
a volatile macroeconomic backdrop but our focus remains on delivering
exceptional performance to our customers and continuing to develop our
products further to retain our advantage over the competition.

 

The modern architecture and the integral position of Alfa Systems at the heart
of our customers businesses means that we are well placed to benefit from
developments in AI and we are confident in our growth expectations for 2026
and beyond."

 

 

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

 Barclays                                  +44 (0)20 7623 2323

 Robert Mayhew

 Anusuya Nayar

 Investec                                  +44 (0)20 7597 4000

 Patrick Robb

 Virginia Bull

 Panmure Liberum Ltd                       +44 (0)20 3100 2000

 Rupert Dearden

 James Sinclair-Ford

 Teneo                                     +44 (0)20 7353 4200

 James Macey White

 Matt Low

 

 

Notes to Editors

 

Alfa has been delivering leading-edge technology to the global asset finance
and leasing industry since 1990. Our specialised expertise enables us to
deliver the most challenging systems transformation projects successfully.

 

Alfa Systems, our class-leading SaaS platform, is at the heart of the world's
largest and most progressive asset finance operations. Supporting all types of
automotive, equipment and wholesale finance, Alfa Systems is proven at volume
and across borders, and trusted by leading brands to manage complex
portfolios, drive efficiency and sustainability, and enhance the customer
experience.

 

With full functionality for originations, servicing and collections, Alfa
Systems is live in 37 countries, representing an integrated point solution, a
rapid off-the-shelf implementation, or an end-to-end platform for the complex
global enterprise.

 

Alfa maintains exceptional customer satisfaction through an impeccable track
record, with our experience and performance unrivalled in the industry. Our
customers stick with us for the long term, because we deliver value that lasts
for decades.

 

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

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