Alfa Financial trading in line as subscriptions, delivery revenues grow

(Sharecast News) - Alfa Financial Software said on Thursday that first-quarter trading was in line with expectations, supported by growth in subscription and delivery revenues and a higher total contract value. The FTSE 250 asset finance software provider said revenue rose 3% year on year to £31.9m in the three months ended 31 March, against what it described as a very strong prior-year quarter.

On a constant currency basis, revenue increased 5%, in line with management expectations.

Subscription revenue rose 13% from the first quarter of 2025, while delivery revenue increased 8%.

Software engineering revenue fell 35%, as expected, against a strong comparative period.

Alfa said total contract value stood at £232.4m at the end of March, up 2% during the quarter.

Delivery TCV increased 7% and subscription TCV rose 1%, while software engineering TCV declined 5%.

The company converted one prospect into a win during the quarter, covering the Canadian operations of a global automotive original equipment manufacturer.

Alfa said the new implementation would include the retail auto and commercial fleet lease and loan book.

It already had live operations for the same OEM in three other countries and was carrying out paid work on a new multi-country programme in another region.

Alfa said it now had nine prospects in its late-stage pipeline, of which it was the preferred supplier for seven and carried out paid work for four.

The company also reported a successful go-live for a long-standing customer upgrading from version 4 to AS6.

The project involved migrating portfolios in two countries onto a single segregated instance on Alfa Cloud, helping the customer simplify its internal systems infrastructure.

Alfa said the migration reinforced its ability to deliver complex, multi-country migrations at scale on Alfa Cloud.

It also said it continued to strengthen product leadership through additional artificial intelligence features and use cases, including agentic integration.

Chief executive Andrew Denton said Alfa had made "a good start to 2026".

"We are operating against a volatile macroeconomic backdrop but our focus remains on delivering exceptional performance to our customers and continuing to develop our products further to retain our advantage over the competition," he said.

The company said it was pleased with the combination of its late-stage pipeline and TCV, and continued to see good activity in the early-stage pipeline.

It said there had been no direct impact on the business from global political and economic uncertainty, although it remained alert to potential changes in discretionary spending and foreign exchange effects.

The board said it remained confident of meeting expectations for the year.

"The modern architecture and the integral position of Alfa Systems at the heart of our customers' businesses means that we are well placed to benefit from developments in AI and we are confident in our growth expectations for 2026 and beyond," Denton said.

At 1010 BST, shares in Alfa Financial Software Holdings were down 1.82% at 151.4p.

Reporting by Josh White for Sharecast.com.

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