Strong Q3 trading full-year expectations increased
10 November 2022
Alfa Financial Software Holdings PLC
Strong Q3 trading, full-year expectations increased
Alfa Financial Software Holdings PLC ("Alfa" or the "Company"), a leading developer of mission-critical software for the asset finance industry, provides this update on trading for the third quarter of the year ended on 30 September 2022.
Operational performance
Operational delivery has continued at pace in the third quarter with seven upgrades delivered in the period. We continue to develop and expand our partner program and have made significant progress in the US where this month we have our first partners working on projects.
Our Smart Hub in Portugal is now live and we are accelerating recruitment of additional developers in Lisbon.
Alfa Systems Version 5.7 has been launched. This was an opportunity to tell the market about two years of technical and functional innovation that is already bringing enormous benefits to Alfa customers.
We were also delighted to be ranked number four in the UK's Top 100 Most Loved Workplace list by Newsweek, a great external endorsement of the continuing strength of the Alfa culture.
Q3 Trading
As noted in our trading update on 20 September 2022, trading since the half year has been strong. We finished Q3 with revenues for the quarter of £25m. This was 25% up on the £20m we recorded for the same period last year, driven by strong levels of chargeability in both our Implementation and Product Engineering teams, the latter delivering record levels of development for customers.
We continue to be a highly cash generative business and our net cash balance at 31 October 2022 was £21m, having paid the Special Dividend of £10.5m on 7 October 2022.
Outlook
We finished September strongly and this performance continued into October. As a consequence our expectations for full year revenue have increased by approximately £1.5 million Sterling, with all of this falling through to operating profit. The Board remains confident that the Group's strong intellectual property, strategy and business model will maintain its market-leading position, financial performance and continued growth.
Andrew Denton, Chief Executive Officer of Alfa, said:
"I am delighted that we continue to perform very strongly both operationally and financially and that our expectations for the year have increased further. The strength of our order book, our sales execution and our pipeline continue to give us confidence in our future prospects."
Enquires
Alfa Financial Software Holdings PLC +44 (0)20 7588 1800
Andrew Denton
Duncan Magrath, Chief Financial Officer
And
Tulchan Communications LLP +44 (0)20 7353 4200
James Macey White
Ed Cropley
This announcement may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements reflect the Company's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Group's business, results of operations, financial position, liquidity, prospects, growth or strategies. Forward-looking statements speak only as of the date they are made.
Notes to Editors
Alfa has been delivering software systems and consultancy services to the global asset and automotive finance industry since 1990. Our best practice methodologies and specialised knowledge of asset finance facilitates 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 finance companies. Key to the business case for each implementation is Alfa Systems' ability to replace multiple customer systems with our single platform. 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. An 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 37 countries. Alfa has offices in Europe, Australasia and North America. For more information, visit www.alfasystems.com.
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