TIDMALFA
RNS Number : 4372J
Alfa Financial Software Hldgs PLC
27 April 2022
27 April 2022
Alfa Financial Software Holdings PLC
Q1 trading update and Special Dividend
Alfa Financial Software Holdings PLC ("Alfa" or the "Company"),
a leading developer of mission-critical software for the asset
finance industry provides an update on trading for the first
quarter of the year ended 31 March 2022 and is also pleased to
announce an additional Special Dividend of 3 pence per share.
Operational performance
In the first quarter we have seen further strong delivery for
our customers, with one go-live as well as three upgrades. We have
delivered a further go-live and two upgrades since the period
closed.
We have seen significant progress with our partner program and
have nearly doubled the number of chargeable partner days this
quarter compared with the same quarter last year.
Plans for our Smart Hub in Portugal have also progressed during
the quarter. We have placed job adverts for remote developers based
in the Lisbon area and we are actively recruiting. We remain
confident of our first recruits joining us in the second half of
this year to boost our Product Engineering capability.
As we announced at the time of our full year 2021 results, we
have converted one prospect from the late stage pipeline to a win,
and have added a new prospect. We have also seen three prospects in
the late stage pipeline move to 'preferred supplier' status. We
continue to add prospects into the pipeline and it further
strengthens our confidence for our future growth ambitions.
Q1 trading
We have seen strong revenue growth in the first quarter with
revenue of GBP22.5m up more than 10% on this time last year (2021:
GBP20.2m). In the month of March, we worked more chargeable days
than at any time in the Company's history and we expect these high
levels of chargeability to continue.
As expected, we saw continued strong growth in subscription
revenues. Software revenues were also up significantly over last
year. Services were in line with last year, largely due to extra
vacation days taken this year compared with the very low level
taken in the first quarter last year. This revenue performance is
consistent with our expectations and cash generation has remained
strong.
Return of capital
On 18 January 2022 we announced a share buyback program of up to
GBP18m over the next 18 months. This was due to the Company having
a very cash generative business model, significant net cash
balances and future cash projections showing generation of more
cash than the Company needs for its current plans.
Even after allowing for the share buyback program and the
payment of the regular dividend, it is clear that we continue to
generate excess cash and our cash balances are continuing to grow.
We have therefore decided to declare a Special Dividend of 3 pence
per share, equivalent to a GBP9m return to shareholders. This
follows on from the Special Dividends of 15 pence per share paid in
November 2020 and 10 pence per share paid in November 2021.
This 3 pence Special Dividend will be paid on 16 June 2022 to
holders on the register as at 6 May 2022. The shares will be marked
ex-dividend on 5 May 2022. This Special Dividend is in addition to
the proposed final dividend of 1.1 pence per share, which if
approved by shareholders at the AGM on 12 May 2022, will be paid on
24 June 2022.
Andrew Denton, Chief Executive Officer of Alfa, said:
"2021 was an outstanding year for delivery across the Company,
and it is pleasing to see that strong performance has carried into
the first quarter of 2022. The strength of our order book, our
sales execution and our pipeline all give us confidence that the
high demand for our services will continue. Whilst we are operating
in a competitive market for the exceptional talent we seek to
recruit and retain, we are currently performing well and in line
with our plans in these areas and we are seeing significant
progress in the number of partner resources in use. Whilst there is
a significant degree of macro-economic uncertainty, we are
confident in our expectations for the full year and believe that we
have the opportunity to exceed them as the year continues."
Enquiries
Alfa Financial Software Holdings
PLC
Andrew Denton, Chief Executive
Officer
Duncan Magrath, Chief Financial
Officer +44 (0)20 7588 1800
Tulchan Communications LLP
James Macey White
Matt Low +44 (0)20 7353 4200
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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