Alfa Financial Software ups special dividend as interim earnings surge

(Alliance News) - Alfa Financial Software Holdings PLC on Thursday reported increased revenue and profit for the first half of the year and said it is on track to meet full year expectations.

The London-based provider of software to automotive finance providers said revenue increased 20% to GBP62.5 million in the six months to the end of June from GBP52.3 million a year ago.

Pretax profit was up 34% to GBP21.5 million from GBP16.1 million, giving basic earnings per share of 5.38 pence, an increase of 33% from 4.05p.

Alfa Financial said annual recurring revenue was up 16% to GBP41.6 million from GBP35.8 million. Subscription revenues were 17% higher than the prior year.

The company declared a special dividend of 5.0p per share, up 19% from 4.2p a year ago, due to "sustained strong growth in cash generation and continued capital allocation discipline".

"We are delighted to have met our bold expectations for the first half of 2025. We have delivered strong growth and made strategic progress across the business. Alfa Systems 6 has been the frictionless upgrade for our customers that we planned and we now have nine of them live on this version," said Chief Executive Officer Andrew Denton.

"Continued investment in our software and our people is expanding our competitive advantage as well as our serviceable and target addressable markets, particularly in US auto originations, commercial finance and fleet."

Looking ahead, Alfa said it is working under letters of engagement with "a number of customers in the late-stage pipeline" and expects to continue this work in the second half before signing full contract packs.

The firm noted that the strong performance in the first half of the year was driven by an expected large increase in software engineering revenues, which it expects to be lower in the second half.

It also sees an impact from planned increases in headcount investment and salary costs.

The company said it remains confident in its full year expectations, despite currency headwinds and wider macro uncertainty.

CEO Denton added: "Our consistent track record of growth and delivery over the last five years shows that we have the right strategy and we remain confident in the outlook for the business."

Shares in Alfa Financial Software were up 0.7% at 219.00p on Thursday morning in London.

By Michael Hennessey, Alliance News reporter

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