Alfa Financial Software edges up guidance due to tight cost control

(Alliance News) - Alfa Financial Software Holdings PLC on Thursday raised its operating margin and profit expectations as it reported increased revenue for the third quarter.

The London-based provider of software to automotive finance providers said revenue climbed 12% in the third quarter to GBP31.7 million from GBP28 million. The firm said revenue was 14% higher at constant currency, in line with its expectations.

Alfa Financial said subscription revenue was up 16% on the third quarter, while delivery revenue advanced 26%.

As expected, revenue in Software Engineering was down 30% against a strong third quarter last year.

"Our focus on tight cost control resulted in lower costs in the period than expected owing to a carefully managed expansion in headcount along with some underspend on travel, conferences and IT costs," the company said.

Alfa Financial said its late-stage pipeline "remains strong" with a net increase in the number of prospects to eight from seven.

The company said it has increased its operating margin and profit expectations for the full-year by around GBP2 million, while its revenue expectations for 2025 remain unchanged.

The cost discipline, which led to the underspend on costs, is expected to continue through the fourth quarter, Alfa Financial said.

It now expects costs for the full-year to be GBP2 million less than previously estimated.

"We are very pleased with our third quarter performance and I am delighted that we are able to increase our expectations for the full year," said Chief Executive Officer Andrew Denton.

"Alongside delivering this strong financial performance we have also continued to invest in our product and our people to enhance our leading position in the market. We remain confident in the strength of our pipeline and the future prospects for the business."

Shares in Alfa Financial Software were up 2.7% at 229.50 pence at midday on Thursday in London.

By Michael Hennessey, Alliance News reporter

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