REG - Alfa Financial Soft - Q4 25 Trading update

Alfa Financial Software HoldingsAnnouncement

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RNS Number : 7927Q  Alfa Financial Software Hldgs PLC  29 January 2026

29 January 2026

Alfa Financial Software Holdings PLC

Q4 25 Trading update

Strong Q4 performance - FY25 revenue and profit outperformance

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 quarter ended 31 December 2025 in
advance of the announcement of full year audited results, for the twelve
months ended 31 December 2025, on Thursday 12 March 2026.

 

 

FY 2025 highlights (unaudited)

 

·      Revenue of £126.5m, c.£2m ahead of market expectations and up
15% on the prior year (17% on a constant currency basis).

·      Operating profit growth for FY25 of 17% to £40.0m, c.£3m ahead
of market expectations.

·      TCV of £227m up 3% on FY24.

·      Strong late-stage pipeline comprising ten prospects (Q4 24: eight
prospects), eight of which have achieved preferred supplier status

 

 

Strong Q4 trading

 

Revenue continued to grow strongly to £32.5m for the quarter, up 11% (12% at
constant currency) on last year.

 

Key financial highlights for Q4:

·      Continued strong growth in Subscription revenues, up 15% versus
Q4 last year.

·      Delivery revenues in Q4 grew strongly, up 16% versus Q4 last
year, with better project chargeability than forecast.

·      As expected, Software Engineering revenues were down versus last
year but a c.7% reduction was smaller than anticipated as some customers
pulled forward chargeable development work originally planned for FY2026.

 

 

Continued strong operational execution

 

In Q4 we completed nine deliveries. In APAC we had Alfa Systems 6 go-live for
an Australian customer that opened a brand-new operation in New Zealand, with
the time between definition and go-live being less than 10 months, a great
achievement.

 

Upgrades to Alfa Systems 6 have continued both effectively and at pace. We now
have twenty customers live on Alfa Systems 6.

 

 

Robust pipeline & TCV

 

We saw further progress in our late-stage pipeline in the quarter with another
two prospects added since the Q3 trading update, so that there are now ten
prospects in the late-stage pipeline.

 

One prospect is for a country expansion for a European OEM. The implementation
project is expected to be relatively small for both implementation and
development work as it is an additional country for an existing customer.
However, given the size of the customer when fully live, it would generate
significant additional subscription revenues. The other prospect is a large
project for a new customer in European Equipment Finance, and we are one of
the remaining two bidders in the process. Overall, we are preferred supplier
for eight out of the ten prospects and are already working with five of them.

 

TCV increased 3% in the quarter to £227m. Subscription TCV continued to grow
and is now 18% higher than this time last year. Delivery TCV also grew
slightly in the quarter but is down versus last year as we have been working
through some large implementations, which would be offset as we convert
prospects from the late-stage pipeline. Software Engineering TCV as previously
highlighted is down as a result of having completed required customer
development and is 42% below the level at last year end.

 

Overall, we are pleased with the combination of the late-stage pipeline and
TCV. They point to continued growth in Subscription and Delivery revenues
across all regions in 2026, with an expected reduction in Software Engineering
revenues as our focus moves to further investment in our product.

 

 

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
sellable software solutions for all three end-markets.

 

Originations was sold to and developed in conjunction with a key customer and
it is planned to be implemented after Servicing capability has gone live. We
are in active discussions with a number of other customers who are interested
in purchasing this new module and this will drive further investment into
extending the product capabilities.

 

Our Fleet development has generated a lot of interest with a number of
demonstrations having been delivered and scheduled and we are confident that
this will drive future sales.

 

Our development work in Commercial Finance is building long-term capability,
however some of the developed functionality already has use cases with
existing customers. In particular, we are having discussions with a number of
customers who wish to utilise the new syndications functionality.

 

 

Andrew Denton, Chief Executive Officer

 

"I am delighted that we have delivered a really strong performance in the
quarter and have finished 2025 so strongly. We remain confident in the
strength of our markets and our position within those markets and despite
obvious currency headwinds we are well positioned to drive overall growth in
2026. Our pipeline and TCV will support further growth in our subscription and
delivery revenues and we will continue to make further investment into our
product to continue to drive revenue growth in future years."

 

 

 

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

 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

 

 

 

 

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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