Alfa Financial Software Holdings PLC Provides Q1 Trading Update

28 April 2023

Alfa Financial Software Holdings PLC

Q1 trading update

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 on 31 March 2023.

Operational performance

In the first quarter we have seen excellent delivery for our customers, with eight deliveries during the quarter and a further three after the quarter end. These included two new customer go-lives in Q1, one of which was an Alfa Start customer.  Since the quarter end we have gone live with an existing customer in Mexico, taking the total number of countries in which Alfa Systems is live to 38.

We announced at the time of our full year 2022 results that we had added a new prospect to our pipeline taking the total in the late stage pipeline to ten and it remains at this high level. We have started work with two major US prospects during the quarter. Along with the two large European prospects we started last year we are now doing paid work with four prospects, with some of that work contracted into H2. This gives us continued confidence in the strength of our pipeline.

Q1 trading

We have seen excellent revenue growth in the first quarter across all revenue streams with total revenue of £27.0m up 20% on this time last year (2022: £22.5m) or 14% at constant currency.

Growth has been particularly strong in Services benefiting from the second-half weighted growth in headcount last year. The very strong performance at the end of 2022 in Software development has continued into 2023 along with continuing excellent growth in Subscription revenues, and good cash generation.

The revenue performance in Q1 is tracking ahead of our expectations by approximately £1m. Most of that increase will benefit operating profit performance.

Andrew Denton, Chief Executive Officer of Alfa, said:

"Last year we had a strong second half both operationally and financially and it is pleasing to see that strong performance carrying into the first quarter of 2023 to give an excellent start to the year. We are also pleased to continue our sales momentum from last year as we start work with two new important prospects. The strength of the late stage pipeline reflects robust demand in the sector and the competitive strength of our proposition gives us confidence in our expectations for the full year."

Enquiries

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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