H1 Trading update

Alfa Financial Software Hldgs PLC

30 July 2026

 

30 July 2026

 Alfa Financial Software Holdings PLC

H1 Trading update

Strong TCV growth and new customer wins, on track to meet full year expectations

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 half year ended 30 June 2026 ("H1").

Trading in line with expectations

Revenue of £33.2m for Q2 was up 6% year-on-year. This was in line overall with higher than expected Software Engineering revenues, driven by increased work for new implementations, offsetting lower Delivery revenues as a result of some customer implementation delays on projects.

Key H1 financial highlights:

●     Revenue of £65.1m, up 4% on last year (5% at constant currency)

o  Subscription revenues were £24.1m, up 14% on last year

o  Software Engineering revenues were £8.6m, down 17% year-on-year following an expected reduction in client-led enhancement work

o  Delivery revenues were £32.4m, up 5%

●     TCV saw strong growth, up 17% year-on-year and 6% in Q2, to £247.0m at 30 June 2026

Strong growth in TCV

We secured a win in the second quarter with a major European automotive manufacturer in the UK, adding to the momentum from the win we achieved in the first quarter. This helped drive TCV to £247.0m.

Strong TCV growth was a result of a combination of strong growth in Subscription TCV and Delivery TCV, up 21% and 22% respectively, offset by a drop in Software Engineering TCV of 29%.

There was one loss from the late-stage pipeline which was an existing v4 customer. This was replaced by two additions to the pipeline: an equipment finance implementation at a large US bank, for which we are already implementing the Auto finance book; and a new customer in UK equipment finance. In total, the late-stage pipeline remains strong, with nine prospects. Alfa is the preferred supplier with eight of the nine prospects and we are working under letters of engagement with three of these prospects.

The continued growth in TCV and strength of the late-stage pipeline provide good visibility over future revenue growth.

Excellent operational execution

H1 saw another excellent operational performance and the strength of our delivery teams remains a key competitive advantage. In the first half we had two go-lives, one in Q1 for an existing v4 customer upgrading onto Alfa Systems 6 and one in Q2 for a new marquee US Auto Finance customer.

This Q2 go-live was for a limited new-business pilot, with a ramp up in new business volumes expected over the coming months. Migrations of the existing finance book are expected to follow, resulting in due course in our largest Alfa Cloud implementation. We expect this customer to be an important part of our growth for the coming years.

Cost focus

We continually assess the resources we need to efficiently deliver to customers. In the first half, this resulted in 31 non-voluntary departures, mainly from Product Engineering. We incurred one-off costs in H1 of £1.6m but the savings in H2 will outweigh these costs to give a small favourable impact on operating profit for 2026 as a whole and with a more significant benefit in 2027. We have continued to recruit where demand is stronger, including into cloud hosting operations and delivery, with both graduate and experienced hire recruitment.

Andrew Denton, Chief Executive Officer

"We are delighted to have won a very prestigious European automotive manufacturer, which we believe will be an excellent proof point as we expand further into the fleet market and this win has contributed to a strong level of TCV. Our delivery teams have continued to execute successfully and we remain confident in the strength of our pipeline. We are well positioned to achieve our expectations for the year."

Notice of results

Alfa intends to announce its results for the six-month period ended 30 June 2026 on Thursday 3 September 2026.

Enquiries

Alfa Financial Software Holdings PLC Andrew Denton, Chief Executive Officer Duncan Magrath, Chief Financial Officer Andrew Page, Executive Chairman	[phone]
Barclays Robert Mayhew Anusuya Gupta	[phone]
Investec Patrick Robb Virginia Bull	[phone]
Panmure Liberum Ltd Rupert Dearden James Sinclair-Ford	[phone]
Teneo James Macey White	[phone]

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 Systems 6, a breakthrough iteration of our software platform, was launched in 2024.

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.

 

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