- Alfa Financial Software Holdings
- 13 November 2025 10:31:10
Source: Sharecast
The FTSE 250 asset-finance software specialist posted revenue of £31.7m for the three months ended 30 September, up 12% on the same period last year, or 14% at constant currency, in line with its expectations.
Subscription revenue grew 16%, while delivery revenue rose 26% as implementation teams remained busy across all three regions.
Software engineering revenue fell 30% against a strong comparator period, which the company said reflected its planned shift toward investment following the completion of customer development work required for delivery milestones.
Total contract value reached a record £222m at the end of the quarter, up from £211m at 30 June and £205m a year earlier.
Alfa said cost discipline contributed to a better-than-expected margin performance, with lower spending on travel, conferences, IT and a carefully managed expansion in headcount.
The company reported continued strength in its late-stage pipeline, which grew from seven to eight prospects.
It was the preferred supplier for seven of these and had started paid work under letters of engagement with five.
Since its half-year results, Alfa has secured a win with an equipment OEM in Australia and New Zealand and added two new prospects: a South American multi-country auto OEM and a UK high street bank.
Delivery TCV benefited from expanded work with existing clients and the conversion of the new equipment-OEM prospect, while subscription TCV increased following a two-year contract extension and underlying growth in recurring revenue.
Software TCV fell, consistent with the shift in focus toward investment rather than customer-funded engineering work.
Operationally, Alfa completed 10 deliveries in the quarter, including an Alfa Systems 6 go-live for an existing Nordic OEM upgrading from version 4.
A further go-live in New Zealand followed immediately after the quarter end.
The company said it now had 14 customers running Alfa Systems 6.
It also reported progress on Originations and Fleet capabilities, which expand its serviceable addressable market, and on Commercial Finance, which enlarges its total addressable market.
Alfa raised its full-year operating margin and profit expectations by around £2m, with revenue guidance unchanged.
Cost discipline seen in the third quarter was expected to continue into the fourth, leaving full-year costs roughly £2m lower 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 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.”
At 1009 GMT, shares in Alfa Financial Software Holdings were up 3.8% at 232p.
Reporting by Josh White for Sharecast.com.
