REG - Alfa Financial Soft - Q3 2025 Trading update

Alfa Financial Software HoldingsAnnouncement

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RNS Number : 3119H  Alfa Financial Software Hldgs PLC  13 November 2025

13 November 2025

 

Alfa Financial Software Holdings PLC

Q3 25 Trading update

Strong trading performance, full year profit expectations raised

 

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 third quarter ended 30 September 2025
("Q3").

 

Strong trading

 

Revenue of £31.7m for Q3 was up 12% on the third quarter of last year, or 14%
at constant currency. This was in line with our expectations.

 

Q3 financial highlights:

·    Subscription revenues: continued strong growth, up 16% on Q3 2024

·    Delivery revenues: up 26% versus Q3 2024, with our delivery teams
busy across all three regions

·    Software Engineering revenues: as expected, revenues were down 30%
versus a strong Q3 last year. This was due to moving our focus to investment
having completed the required customer development to achieve delivery
milestones

·    TCV ended the quarter at a record of £222m, up from £211m at 30
June 2025 and versus £205m at the end of Q3 last year

 

Our focus on tight cost control resulted in lower costs in the period than
expected owing to a carefully managed expansion in headcount along with some
underspend on travel, conferences and IT costs.

 

Robust pipeline & TCV

 

Our late-stage pipeline remains strong with a net increase in the number of
prospects from seven to eight. We are the preferred supplier for seven of
these and have commenced paid work under letters of engagement with five.
Since announcing our half year results we have converted an Equipment OEM in
Australia & New Zealand into a win. We have also added two new prospects,
an Auto OEM covering a multi-country South American project and a UK high
street bank.

 

Overall TCV showed a pleasing increase in Q3. Delivery TCV benefited from
expanded work with existing customers and the conversion from the late-stage
pipeline of the Equipment OEM noted above. Subscription TCV increased due to a
two-year extension to a contract along with continued underlying growth in
Subscription revenues. Software TCV was lower in the period reflecting the
shift in our focus to investment having completed the required customer
development to achieve delivery milestones.

 

We are pleased with the overall strength of the pipeline from early stage
through to late stage and in all geographies.

 

Focused operational execution

 

In Q3 we completed 10 deliveries, including an Alfa Systems 6 go-live for an
existing OEM customer in the Nordics, upgrading from v4. Immediately after the
quarter end we also delivered a go-live in New Zealand, further demonstrating
our success in working with customers across multiple territories.

 

Conversions to Alfa Systems 6 have continued both effectively and at pace. We
now have 14 customers on Alfa Systems 6.

 

Progress on expanding markets

 

We have made good progress in developing our Originations and Fleet
capabilities, which expands our Serviceable Addressable Market and also with
Commercial Finance which expands our Total Addressable Market. We now have
demonstrable software solutions for all three end-markets and we are further
encouraged by feedback received during the industry conferences we have
attended over the last two months.

 

Outlook

 

We have increased our operating margin and profit expectations for the full
year by c.£2m. Our revenue expectations for the year to December 2025 remain
unchanged. Our cost discipline driving the underspend on costs in Q3 is
expected to continue through Q4. We now expect costs for the full year to be
c.£2m less than previously estimated, thereby increasing our operating margin
and profit expectations for the full year accordingly.

 

Andrew Denton, Chief Executive Officer

 

"We are very pleased with our third quarter performance and I am delighted
that we are able to increase our expectations for the full year. Alongside
delivering this strong financial performance we have also continued to invest
in our product and our people to enhance our leading position in the market.
We remain confident in the strength of our pipeline and the future prospects
for the business."

 

 

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 Gupta

 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

 

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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