Alfa Financial Software Hldgs PLC H1 Trading update (5702G)
July 20 2023 - 2:00AM
UK Regulatory
TIDMALFA
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.
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