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Alfa Financial Software beats FY forecasts on 'strong' Q4 performance

(Sharecast News) - Asset finance industry software developer Alfa Financial Software said on thursday that it had delivered a "strong Q4 performance", with full-year revenue and profits both outperforming expectations. Alfa Financial said unaudited revenues had grown 15% to £126.5m in the twelve months ended 31 December, putting it roughly £2m ahead of market expectations, while operating profits grew 17% to £40m, ahead of the roughly £37m expected by analysts.

Total contract value was up 3% at £227m, underpinned by a growing late‑stage pipeline in which most prospects have already reached preferred‑supplier status.

Alfa said fourth‑quarter software engineering revenue declined as expected, though it noted the reduction was smaller than forecast as some customers accelerated development work originally planned for next year.

The FTSE 250-listed firm also said its pipeline continued to strengthen, with ten prospects now in late‑stage discussions - including a country expansion for a major European OEM and a large European equipment‑finance project where the group was one of two remaining bidders.

Subscription TCV rose sharply year‑on‑year on Q4, delivery TCV ticked higher and software engineering TCV fell, reflecting the completion of required customer development.

Looking ahead, Alfa said the combination of pipeline strength and TCV supports further growth in subscription and delivery revenue in 2026, even as software engineering moderates.

Chief executive Andrew Denton said: "I am delighted that we have delivered a really strong performance in the quarter and have finished 2025 so strongly. We remain confident in the strength of our markets and our position within those markets and despite obvious currency headwinds we are well positioned to drive overall growth in 2026. Our pipeline and TCV will support further growth in our subscription and delivery revenues and we will continue to make further investment into our product to continue to drive revenue growth in future years."

As of 0850 GMT, Synthomer shares were up 1.42% at 215p.

Reporting by Iain Gilbert at Sharecast.com

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