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Highlights

  • Alfa secured a record 8 new customers and delivered 26 successful projects in FY24
  • The company’s FY24 revenue increased by 7.7% YoY, reaching GBP 109.90 million, driven by growth in subscription and software engineering revenue
  • The company’s cash position at the end of FY24 was GBP 20.5 million, with a cash conversion rate of 89%.
  • Alfa enters 2025 with a record TCV and a positive outlook for continued double-digit revenue growth

Alfa Financial Software Holdings PLC (LSE:ALFA) is a UK-based company listed on the FTSE 250. It provides software solutions for the global asset and automotive finance industry. The company offers its flagship product, Alfa Systems, along with development services, implementation support, and ongoing maintenance.

Alfa Financial Software accelerated its shift to a SaaS subscription model, achieving an 18% growth in subscription revenue, driven mainly by existing customers, with further acceleration expected after go-live and a 14% increase in subscription TCV. Subscription revenues now represent 34% of total revenue. The company also secured a record 8 new customers, successfully delivered 26 projects, and closed the year with a robust late-stage sales pipeline.

FY24 Financial Performance

In the financial year 2024 (FY24), Alfa Financial Software reported a revenue of GBP 109.90 million, a 7.7% increase compared to FY23. . Delivery revenues rose by 1% YoY, totalling GBP 55.0 million, with higher growth anticipated in 2025. Software Engineering revenue surged 70% in H2, reaching GBP 17.4 million, marking a 12% increase year-on-year and supported by a healthy 2025 pipeline.

The company’s cash position stood at GBP 20.5 million at the end of FY24, a slight decrease from GBP 21.8 million in FY23. Cash conversion dropped to 89% from 115% in 2023, which had benefited from high year-end receipts. With the expansion of the SaaS model, cash conversion is expected to stabilise between 90% and 100% in the future.

Company Outlook

Alfa Financial Software enters 2025 with a record TCV, supporting its growth. Subscription revenues are anticipated to grow in the mid-teens. Delivery and software engineering revenues are also showing good momentum, driving overall double-digit growth. The successful launch of Alfa Systems 6  provides the company with a positive outlook for continued progress and value creation in 2025 and beyond.

Top 10 Shareholders

The top 10 shareholders of ALFA together account for approximately 87.34% of the company's total shareholdings. CHP Software and Consulting, Ltd. holds the largest stake with around 54.66%, while Liontrust Investment Partners LLP follows with a 9.14% shareholding.

Stock Information

Over the past month, the stock has dropped by roughly 9.18%. In contrast, it has gained about 8.85% over the last six months. The stock's 52-week range spans from a low of GBX 155.10 to a high of GBX 250.00. As of 31 March 2025, the stock is trading above the average of its 52-week high and low, with a closing price of GBX 217.5.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 31 March 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.