Alfa Financial Software Hldgs PLC Q3 Trading update (2813T)
14 Noviembre 2023 - 1:00AM
UK Regulatory
TIDMALFA
RNS Number : 2813T
Alfa Financial Software Hldgs PLC
14 November 2023
14 November 2023
Alfa Financial Software Holdings PLC
Q3 Trading update
Performance in line with expectations
Alfa Financial Software Holdings PLC ("Alfa" or the "Company"),
a leading developer of mission-critical software for the asset
finance industry provides this scheduled update on trading for the
quarter ended 30 September 2023.
Trading
Trading since the half year remains strong and in line with
expectations, with revenue of GBP25m consistent with the same
period last year.
The financial highlights were:
-- Double digit growth in Subscription revenues continued the
strong sequential growth we have seen since we started to migrate
away from perpetual licences.
-- Software revenue is down versus strong chargeability in the
third quarter last year. As expected, we have seen a lower run-rate
than the first half with reduced chargeable development days as a
result of our H2 focus on product investment and the reduction in
the customised licence revenue recognition as we transition to a
subscription licence model.
-- Services revenue was slightly up on the same period last year.
Operational highlights
As planned, following a strong first half for chargeable
development, we are now focusing our engineering efforts towards
future product roadmap development as we release Alfa Systems 6
over the next twelve months. This new version is a step-change in
functionality on the existing technical platform and is therefore
available to existing customers through their standard upgrade
process. Feedback from our customers at our US and European user
groups was overwhelmingly positive and we are confident that the
new version will drive incremental module sales.
With the increasing focus on Artificial Intelligence ("AI")
across our client base we have decided to integrate our development
of AI more closely with our product roadmap. We will therefore
transfer the activities of Alfa iQ into core Alfa to be marketed
alongside our existing products under the same brand name.
In the third quarter we have continued the strong delivery pace
from the first half with nine further go-live events, including a
v4 to v5 go-live for a long-standing UK banking customer and a
go-live for the commercial asset finance book of a bank. Since the
end of the quarter we have had a successful new UK Alfa Start
go-live.
Pipeline and Outlook
At the end of August we had eleven prospects in the late stage
pipeline, of which ten were at preferred bidder status. Since then
this has further improved with the addition of another opportunity
from the mid-stage pipeline.
We have just signed full contract packs for the European arm of
a major US automotive manufacturer and they will shortly go-live,
illustrating how the contracting process now often runs alongside
paid delivery work under individual letters of engagement. We are
close to signing complete contracts with two more from the
late-stage pipeline.
Looking forwards the pattern of Q3 is expected to continue
through into Q4. We expect strong growth in subscription revenues
and more modest growth in services revenues as new projects start
to ramp up. Software revenues will be down due to a continued focus
on non-chargeable product development work by our internal team
along with reduced customised licence revenue recognition as a
result of our ongoing migration to a subscription revenue model.
Overall our expectations for the full year to 31 December 2023
remain unchanged.
Andrew Denton, Chief Executive Officer of Alfa, said:
"I am delighted that we have continued to drive the business
forwards maintaining a high delivery cadence while evolving our
product in line with our roadmap. The marketing of Alfa Systems 6
has received strong positive reactions from customers. Our pipeline
remains as strong as I have ever seen it, and I am excited to have
welcomed yet another prestigious global automotive brand into the
Alfa family. The Board remains confident in its expectations for
the full year and in our prospects beyond that."
Enquiries
Alfa Financial Software Holdings
PLC +44 (0)20 7588 1800
Andrew Denton, Chief Executive
Officer
Duncan Magrath, Chief Financial
Officer
Andrew Page, Executive Chairman
Teneo +44 (0)20 7353 4200
James Macey White
Victoria Boxall
Barclays +44 (0)20 7623 2323
Robert Mayhew
Tom MacDonald
Investec +44 (0)20 7597 4000
Patrick Robb
Virginia Bull
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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