Alfa Financial Software Holdings PLC
LSE:ALFA
Alfa Financial Software Holdings PLC
Alfa Financial Software Holdings Plc engages in the provision of software and software-related services to the asset finance industry. The firm is focused on subscriptions, software and services. The firm operates in approximately 26 countries and is located in Europe, Australasia and North America.
Alfa Financial Software Holdings Plc engages in the provision of software and software-related services to the asset finance industry. The firm is focused on subscriptions, software and services. The firm operates in approximately 26 countries and is located in Europe, Australasia and North America.
Outstanding First Half: Alfa delivered a very strong H1 2025, with revenue up 22% in constant currency and major improvements across key metrics.
Subscription Growth: Subscription revenue rose 17% and annual recurring revenue (ARR) increased 16% to GBP 42 million, with net revenue retention (NRR) at a robust 112%.
Margin Expansion: Operating margin reached 35%, up from 31% last year, driven by higher chargeability, especially in Software Engineering.
Raised Dividend: The Board declared a special dividend of 5p per share, up 19% year-on-year.
Unchanged Outlook: Management reiterated full year expectations, expecting double-digit revenue growth and continued momentum in subscription.
Strategic Investments: Alfa continued to invest in product development, talent acquisition, and expanding its addressable markets, notably in commercial finance, originations, and fleet.
AI as an Enabler: Management views AI as a tool for simplification and efficiency, not a near-term competitive threat.
Strong Pipeline: The late-stage sales pipeline remains robust, with 7 prospects and ongoing strong demand across end markets.
