Alfa Financial Software Hldgs PLC Trading Update and Notice of Results (3707M)
September 16 2019 - 1:01AM
UK Regulatory
TIDMALFA
RNS Number : 3707M
Alfa Financial Software Hldgs PLC
16 September 2019
16 September 2019
Alfa Financial Software Holdings PLC
Trading Update and Notice of Results
Alfa Financial Software Holdings PLC ('Alfa') provides the
following update on trading, ahead of its interim results which
will be released on Thursday 26 September. Revenues for the half
year are expected to be approximately GBP31m (2018: H1 GBP32.9m)
with operating profit of approximately GBP5m (2018: H1 GBP8.6m),
reflecting delays in the implementation of particular projects and
a reduction in customer spend on optional upgrades and non-critical
work driven by the broader macro uncertainty.
Notwithstanding these delays, Alfa has successfully gone live
with a project for a global OEM in Europe and has carried out work
with two new EMEA customers in advance of finalising licence
agreements. All of these customers contributed significant revenues
in the first half. Alfa has a strong installed customer base, solid
recurring revenues and committed implementation projects.
Looking forward, the Board anticipates baseline revenue for the
full year to be in the region of GBP63-GBP65m, based on existing
customer agreements and assuming that the challenging market
conditions that prevailed in the first half of the year continue.
This range does not include potential revenue upside of up to
approximately GBP4m, partly relating to finalising new licence
agreements and partly relating to finalising licence and
maintenance settlement arrangements with an existing customer. Each
of these is well advanced but the timing and recognition of these
items remains uncertain.
Competition for talent is high across our markets and
consequently we expect to award remuneration increases for our
delivery teams in excess of general inflation rates. Additionally,
we expect to incur some one-off legal costs in the second half of
2019.
As a result, the Board now expects Alfa's full year profit for
2019 to be significantly below its previous expectations.
Alfa continued to generate significant levels of cash in H1 and
remains in a strong financial position, ending H1 with net cash of
GBP53.3m (2018: H1 GBP44.9m). Whilst we remain cautiously
optimistic regarding pipeline development, we anticipate the
broader macro uncertainty impacting our markets extending into
2020.
Alfa will announce its interim results for the period ended 30
June 2019 on Thursday 26 September. A presentation will be held for
analysts on the day of the results. For further information, please
contact alfa@tulchangroup.com.
Alfa Financial Software Holdings PLC 0207 588 1800
Andrew Denton, Chief Executive Officer
John Miller, Interim Chief Financial Officer
Andrew Page, Executive Chairman
Tulchan Communications LLP 0207 353 4200
James Macey White
Matt Low
Hollie Ralston
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014) ("MAR") prior to its release as part
of this announcement and is disclosed in accordance with the
Company's obligations under Article 17 of MAR.
Notes to Editors
Alfa has been delivering systems and consultancy services to the
global asset and automotive finance industry since 1990. Our best
practice methodologies and specialised knowledge of asset finance
mean that we deliver the largest software implementations and most
complex business change projects. With an excellent delivery
history over nearly three decades in the industry, Alfa's track
record is unrivalled.
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 client systems on a 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, the opportunities that Alfa
Systems presents to asset finance companies are clear and
compelling.
Alfa Systems is supporting portfolios in 20 countries and Alfa
has offices in Europe, Asia-Pacific and North America. For more
information, visit www.alfasystems.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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