Alfa Financial Software Holdings PLC has released its audited results for the year ended 31 December 2023, showcasing robust financial performance and strategic advancements. The company reported a 9% increase in revenue, driven by a 16% surge in subscription revenues. Operating profit saw a 2% rise, with a record Total Contract Value (TCV) of £165.3m, up 16% from the previous year. Alfa maintained a strong cash position, with £21.8m and no bank debt, and declared a special dividend of 2.0 pence per share, alongside proposing a final ordinary dividend up 8% to 1.3 pence per share.
The company's strategic highlights include an accelerating transition to a subscription model, marked by a 16% growth in subscription revenues and a 28% increase in subscription TCV. Alfa also invested £35m in product development, launched Alfa Systems 6 with 10 new modules, and demonstrated a commitment to sustainability by having emission reduction targets validated by SBTi and pledging to achieve net-zero by 2050.
Furthermore, Alfa showcased a diversification of its customer base, with the top five customers generating 35% of revenues, down from 61% in 2019. The company also experienced strong sales and delivery momentum, with a record year for software delivery, including seven customer go-lives and 28 other deliveries.
Looking ahead, Alfa anticipates mid to high single-digit revenue growth in 2024, primarily driven by the continued strong growth in subscription. The company remains confident in its outlook and strategy, intending to invest in technology and people while returning cash to shareholders through sustainable, progressive dividends.
Andrew Denton, Chief Executive Officer of Alfa Financial Software Holdings PLC, expressed confidence in the company's outlook, emphasizing the strong growth in the subscription business, a resilient late-stage pipeline, and the inherent robustness of the asset finance software market. He highlighted the company's reduced customer concentration, diversified market presence, and the conversion of the late-stage pipeline as indicators of a promising second half in 2024 for their services.