Alfa Financial Software Hldgs PLC Smaller Related Party Transaction (3362U)
01 August 2022 - 4:02PM
UK Regulatory
TIDMALFA
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 GBP0.5m which will be posted in H2 2022. The
assignment will reduce ongoing rent costs by GBP1.0m per annum,
which is a GBP0.5m 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 +44 (0)20 7588 1800
Tulchan Communications LLP
James Macey White
Matt Low +44 (0)20 7353 4200
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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