Alfa Financial Software Holdings PLC, a provider of software for the asset finance industry, has released its audited results for the 12 months ending on 31 December 2023, demonstrating significant progress both financially and strategically.
Alfa reported a notable 9% increase in revenue, reaching £102 million compared to £93.3 million in the previous year. This growth was primarily driven by a 16% increase in subscription revenues. Operating profit also saw a modest rise of 2% to £30.1 million, reflecting the company’s continued investment in its platform to support future growth initiatives. Alfa also achieved a record Total Contract Value (TCV) of £165.3 million, marking a 16% increase from the previous year.
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Strategically, Alfa has made strides in several key areas. The company transitioned towards a subscription-based model, with subscription revenues experiencing 16% growth and subscription TCV increasing by an impressive 28%. Alfa also continued its investment in product development, with £35 million allocated to this endeavour, including the launch of Alfa Systems 6, which introduced ten new modules to the software suite. Furthermore, the company remained committed to enhancing its workforce, achieving high staff retention rates of 97% and maintaining strong employee engagement levels.
In line with its commitment to sustainability, Alfa announced its pledge to achieve net-zero emissions by 2050, aligning with the Science Based Target initiative. The company’s efforts in customer diversification were evident, with the top five customers contributing 35% of revenues, down from 61% in 2019, demonstrating reduced customer concentration.
Looking ahead, Alfa expects mid to high single-digit revenue growth in 2024, primarily driven by continued subscription growth. The company intends to maintain its focus on technology and talent investment while returning cash to shareholders through sustainable dividends.
Andrew Denton, Chief Executive Officer of Alfa, said: “The business is supported by a growing subscription revenue base and the conversion of the late-stage pipeline points to a strong second half in 2024 for our services. This alongside the inherent robustness of the asset finance software market and our continued investment in high-quality people, underpins our strong confidence in the outlook for the business.”
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