Q3 Trading Update

RNS Number : 7101R

Alfa Financial Software Hldgs PLC

09 November 2021

 

9 November 2021

Alfa Financial Software Holdings PLC

Scheduled Q3 trading update

Momentum in the business continues

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.

Revenue and Cash

Revenue in the third quarter was strong at £20m, significantly ahead of £16m for the same period last year with high levels of chargeability which has continued through October.  Our net cash generation has remained strong.

Delivery

Delivery performance has remained excellent. We had delivered fifteen successful go-lives of Alfa Systems at the time of the half year results in September. This has now increased to twenty three, the most significant of which was a new implementation go-live for a large US automotive client with the successful migration of well over 1 million contracts.

Pipeline and TCV

At the time of our half-year results on 22 September 2021 we had seven prospects in our late stage pipeline. We are continuing to make progress on converting prospects into signed contracts and in addition have added a large prospect in Europe so the late stage pipeline currently sits at eight prospects.

We have had two wins so far in H2, which were announced at the time of the half year results in September. These, along with the signing of additional statements of work, net of work performed has resulted in our TCV ("Total Contracted Value") increasing from £125m at 30 June 2021 to £128m at 30 September 2021.

Outlook

Overall, given the strength of the revenue performance in Q3 and the chargeability through October, we now expect to exceed our revenue estimates for 2021 by a further circa 3%.

Andrew Denton, Chief Executive Officer of Alfa said:

"This has been an outstanding quarter in what has been an outstanding year for Alfa.  We are delighted to see continued good progress across all areas of the business. Already this year more new customers have started using Alfa Systems in more geographies than any year in our history.  We have continued to develop the Alfa Systems to evolve their functionality and technical capability to maintain our leadership position in the markets we serve and we were delighted to be able to update the market on the strength of our intellectual property at our recent investor event. These foundations, our financial performance and the strength of our pipeline means that we continue to have growing confidence in the outlook for the business".

Enquiries

Alfa Financial Software Holdings PLC Andrew Denton, Chief Executive Officer Duncan Magrath, Chief Financial Officer	[phone]
Tulchan Communications LLP James Macey White Victoria Boxall	[phone]

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 spanning three decades, 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 used by customers or has live implementations in 26 countries and Alfa has offices in Europe, Australasia and North America.  For more information, visit www.alfasystems.com.

 

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