Alfa Financial Software Holdings PLC has released its Q1 trading update, indicating strong growth in Total Contract Value (TCV) and maintaining unchanged full-year expectations. The company has demonstrated excellent operational performance, with seven deliveries in the first quarter, including the launch of Alfa Systems 6, covering ten new modules released in six functional instalments. Notably, the Sustainability module includes Scope 3 emissions reporting and pay-per-use capability, expanding the company's addressable market.
The pipeline has shown encouraging development, with a 15% increase in TCV to £190m, driven by the conversion of one large US automotive prospect and one very large multi-country European equipment prospect, both on Alfa Cloud. Additionally, the late-stage pipeline has gained momentum, with one new prospect, bringing the total to ten, of which six are being actively pursued.
Q1 trading was as expected, with revenue of £26m, down (2)% on a constant currency basis compared to the previous year. This was primarily due to lower services revenues as new projects ramp up and lower software revenues as the company focused on investing and delivering Alfa Systems 6 functionality. However, subscription revenue has continued to show strong mid-teens percentage growth.
Andrew Denton, Chief Executive Officer of Alfa, expressed confidence in the company's performance, stating, "We have had a strong start to the year, securing two exciting new customers and starting work with a number of prospective clients in the late-stage pipeline." He also highlighted the company's continued investment in product differentiation and the strong sequential growth in the subscription revenue stream, positioning them well to achieve their expectations for the year.
Alfa Financial Software Holdings PLC has been delivering software systems and services to the global asset and automotive finance industry since 1990. Their class-leading technology platform, Alfa Systems, supports both retail and corporate business for auto, equipment, wholesale, and dealer finance on a multijurisdictional basis, providing compelling solutions to asset finance companies.