(Alliance News) - Alfa Financial Software Holdings PLC on Tuesday resumed its dividend payments for 2020, following a sharp boost in annual profit and revenue, ahead of expectations.
Alfa - which provides software to the asset finance industry - posted a 78% rise in pretax profit to GBP23.2 million from GBP13.0 million in 2019, on revenue that grew 22% to GBP78.9 million from GBP64.5 million, on a reported as well as constant currency basis.
The group noted strong growth in all areas of its business, but particularly in Maintenance and Ongoing Development & Services.
Maintenance revenue rose 29% to GBP19.2 million, driven by annual maintenance price rises, and a higher volume of contracts being supported for certain customers.
Meanwhile, revenue from the ODS business increased 38% to GBP32.4 million, due to a rise in new customers, as well as upgrade and expansions of ODS projects within 2020 from existing customers.
Alfa declared an ordinary dividend of 1.0 pence per share, after paying none for 2019, and had paid a special dividend of 15p per share in November 2020.
Looking ahead, the group expects revenue for 2021 to be in line with 2020's figure on a constant currency basis. However, profitability will be affected by increasing travel and marketing expenses as lockdowns start to ease.
"I reflect on 2020 as being a difficult year for many people, but a year in which Alfa made real progress in developing momentum for future success. We delivered for our customers, continued to improve our digitally-enabled world class software and strengthened and supported our internal and external communities, whilst continuing to grow both revenues and our order book," said Chief Executive Officer Andrew Denton.
Shares in Alfa Financial Software were up 1.5% at 138.00 pence on Tuesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Alfa Fin (ALFA)