REG - Alfa Financial Soft - Q1 Trading update

Alfa Financial Software HoldingsAnnouncement

Tue 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250429:nRSc4934Ga&default-theme=true

RNS Number : 4934G  Alfa Financial Software Hldgs PLC  29 April 2025

29 April 2025

 

Alfa Financial Software Holdings PLC

Q1 Trading update

Strong trading performance, TCV reaches new record, 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 2025
("Q1").

 

 

Strong trading

 

Revenue grew to £31m for the quarter, up 20% on the first quarter of last
year, or 21% at constant currency in line with management's expectations.

 

Key financial highlights:

●  Continued strong sequential growth in Subscription revenues, up 6% on Q4
2024 and 21% versus Q1 last year.

●  Software Engineering revenues were up 79% versus Q1 last year following
a shift back towards client-led enhancement work undertaken in H2 last year.

●    Delivery revenues grew 8% versus Q1 last year.

●   TCV at the end of the quarter was a record £227m, up from the previous
record £221m at 31 December 2024 and versus £190m at Q1 last year.

 

 

Operational performance continues to impress

 

Following the successful release of Alfa Systems 6, we have generated strong
interest in the new additional modules available as part of the product suite,
with incremental module sales closed or in progress with 17 existing
customers. We continue to invest in the product with a strong focus on
client-led functional enhancements, which will allow us to maintain our lead
over the competition. We have 5 customers live on Alfa Systems 6 already,
which demonstrates both ease of upgrade and demand for the new modules
available as part of the product.

 

 

Robust pipeline development

 

Following a record number of wins in 2024 our late-stage pipeline remains very
strong, with one new European Equipment prospect added in Q1. Since the start
of the year, one AsiaPacific Retail prospect moved back to the mid-stage
pipeline resulting in 8 prospects in our late-stage pipeline. We are the
preferred supplier with 7 of these and working under letters of engagement
with 6.

 

We remain very confident in the overall strength of the pipeline from early
stage through to late stage and are continuing with our recruitment plans
across the UK, Europe and the US to accommodate the strong demand for our
services.

 

The imposition of tariffs on the movement of goods has no direct impact on our
business. We have also seen no change in buying behaviour from any of our
customers as a result of actual or threatened imposition of tariffs and
continue to believe that the underlying market conditions driving potential
customers to implement new systems remains positive.

 

 

Andrew Denton, Chief Executive Officer

 

"We've had a strong start to the year across all revenue streams as we deliver
for new customers, upgrade existing customers to Alfa Systems 6 and work with
late-stage prospects through the sales process. We continue to see fantastic
sequential growth in our Subscription revenues, up 6% on last quarter and 21%
on the same quarter last year. We continue to invest in the product and our
people to further enhance our leading position in the market and our excellent
delivery track record. We have seen no change in customer buying behaviour as
a result of current macro-economic uncertainty and we are well positioned 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

 Panmure Liberum Ltd                       +44 (0)20 3100 2000

 Rupert Dearden

 James Sinclair-Ford

 

 

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) .

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  TSTBUGDSCSDDGUI