Alfa Financial Software Holdings Regulatory News (ALFA)

10 May 2021

Alfa Financial Software Holdings PLC

AGM trading update

Alfa Financial Software Holdings PLC ("Alfa" or the "Company"), a leading developer of mission-critical software for the asset finance industry provides this update on trading in advance of its AGM to be held later today at 3:00 p.m, at Moor Place, One Fore Street Avenue, London, EC2Y 9DT, which shareholders can join via webcast.

2021 has seen a continuation of our excellent delivery performance. At the end of March, our second UK Alfa Start project went live for a UK Equipment finance company with the project being delivered in a 24 week timeframe. At the same time we also saw a go-live for a UK bank for its corporate loans business.

At the time of our 2020 results publication on 23 March 2021 we announced that we had a strong late stage pipeline. Since that time we have not lost any customers from this pipeline and we have converted one to preferred bidder status. We have continued to work with a number of prospects under letters of engagement including for two new prospects in Q1 as we progress towards signing full contract packs to secure those projects. This work has underpinned our Q1 revenue performance.

We have seen good revenue growth in the first quarter with revenue of £20m despite some currency headwinds from Sterling strengthening. As expected, we saw growth in both Maintenance (including Cloud Hosting revenues) and ODS revenues and a decline in Implementation revenues with resultant lower licence income. Overall revenue performance is consistent with our expectations for a strong first half where we have good contractual cover, and a weaker second half until contractual cover increases.

Andrew Denton, Chief Executive Officer of Alfa, said:

 "Overall we have started the year well, both operationally and financially. We continue to believe that we have the opportunity to outperform, but in an environment where it is taking longer to secure contractual commitments we remain cautious until greater contractual cover is secured."

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Notes to Editors

Alfa has been delivering software systems and consultancy services to the global asset and automotive finance industry since 1990. Our best practice methodologies and specialised knowledge of asset finance facilitates delivery of large software implementations and highly complex business change projects. With an excellent delivery track record spanning three decades, Alfa's experience and performance is unrivalled in the industry.

Alfa Systems, our class-leading technology platform, is at the heart of some of the world's largest asset finance companies. Key to the business case for each implementation is Alfa Systems' ability to replace multiple customer systems with our single platform. Alfa Systems supports both retail and corporate business for auto, equipment, wholesale and dealer finance on a multijurisdictional basis, including leases/loans, originations and servicing. An end-to-end solution with integrated workflow and automated processing using business rules, Alfa Systems provides compelling solutions to asset finance companies.

Alfa Systems is currently used by customers or has live implementations in 26 countries and Alfa has offices in Europe, Australasia and North America. For more information, visit www.alfasystems.com.