Smaller Related Party Transaction

RNS Number : 3362U

Alfa Financial Software Hldgs PLC

01 August 2022

 

  1 August 2022

Alfa Financial Software Holdings PLC

Smaller Related Party Transaction

Alfa Financial Software Holdings PLC ("Alfa" or the "Company"), a leading developer of mission-critical software for the asset finance industry, today announces that it has reached agreement for the assignment of its lease to the 9th floor of 1 Fore Street Avenue, London to CHP Software and Consulting Limited ("CHP"), a 66% shareholder in Alfa.

Background

Alfa has leases for the 9^th, 10^th and 11^th floors at 1 Fore Street Avenue, London that run through to 2030. This is the head office of Alfa. The 9^th floor lease was entered into in 2018 and at the time just under half of the floor was sublet to a third party. The tenant gave notice and moved out in February 2022.

Alfa expects continued substantial growth in headcount in all of its locations, but having looked at its new hybrid working arrangements has concluded that it no longer requires the 9^th floor, and in 2022 has consolidated all its in-person activities onto the 10^th and 11^th floors. Alfa has therefore been looking for options for the 9^th floor.

CHP has been looking for increased office space.

The lease assignment

Agreement has been reached between Alfa and CHP for the 9^th floor lease to be assigned from Alfa to CHP. There is no consideration for the transaction, with CHP taking on all the rights and liabilities for the 9^th floor from Alfa. The assignment of the lease will result in the de-recognition of the right to use asset and lease liability, which will crystallise a one-off gain of £0.5m which will be posted in H2 2022. The assignment will reduce ongoing rent costs by £1.0m per annum, which is a £0.5m improvement versus 2021, when just under half of the floor was sub-let to a third party.

As CHP is a substantial shareholder of Alfa, it is a 'related party' of the Company for the purposes of Listing Rule 11.1.4R. The entry into the lease assignment by Alfa constitutes a 'smaller related party transaction' for the purposes of Listing Rule 11.1.10R.

Enquiries

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

LEI : 213800C5UOZHUTNUGA28

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 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 live in 37 countries where it is supporting a portfolio where the customers' end clients are located.  Alfa has offices in Europe, Australasia and North America.  For more information, visit www.alfasystems.com .

 

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