Alfa reports increased profit expectation for FY23

Alfa Financial Software (Alfa) has today reported strong performance in Q4, consistent with the third quarter.

Financial highlights include double-digit growth in subscription revenues; software revenue down compared with last year due to a changing focus to internal product investment; and service revenue in line with the same period last year.

Overall revenue growth for FY23 was in line with expectations, up 9% on FY22. But with costs expected to be £1m lower, operating profit for FY23 will be c.£1m ahead of original expectations.

Alfa’s delivery performance continued in Q4, with 11 further go-lives plus upgrades, bringing the total for the year to 35, beating the previous best of 28 delivered in 2022.

In FY23, Alfa reported seven new customer go-lives, with three major new customers including the UK subsidiary of a global automotive OEM, the automotive subsidiary of a major US bank, and the Australian subsidiary of a global automotive OEM.

Maintaining a strong late-stage pipeline through the year, Alfa reported progress at the end of the year in converting two of these into wins, with a full set of signed contracts. Total Contract Value (TCV) is expected to finish the year significantly ahead of 2022 driven by strong growth in subscription TCV.

Andrew Denton, Chief Executive Officer of Alfa, said: “I am delighted that in 2023 we have continued to drive the business forwards with strong revenue growth, a record number of deliveries and an exciting product roadmap. Our pipeline remains strong and we have seen strong growth in subscription TCV driving overall TCV growth. The Board remains confident in the future prospects for the business.”