14th Nov 2024 12:22
(Alliance News) - Alfa Financial Software Holdings PLC reaffirmed on Thursday that it expects its 2024 operating profit to exceed prior expectations after "strong" revenue growth during the third quarter.
Alfa Financial shares were up 3.8% at 266.25 in London on Thursday afternoon.
For the three months to September 30, the London-based provider reported revenue of GBP28 million, reflecting growth of 14% year-over-year and 16% at constant currency. In comparison, Alfa Financial posted revenue of GBP25 million in the third quarter of 2023, marking an 11% increase to this year.
Alfa said it anticipates continued strong growth in the fourth quarter, despite currency headwinds expected to impact revenue by one or two percentage points.
The company also expects full-year costs to come in GBP1 million below earlier projections. As a result, Alfa Financial reiterated its second-quarter forecast that its 2024 operating profit will exceed the previous expectation by GBP1 million. The company had initially projected mid to high single-digit revenue growth for the full year.
Alfa reported a notable pipeline conversion, with total contract value reaching GBP205 million as of September 30, a 56% increase from the same period last year and the highest level recorded by the company.
Alfa said performance during the third quarter was "strong", with all six components of its Alfa Systems 6 now live. The final additions, Intelligent Automation and Collaborative Ecosystem, provide AI-driven decision-making and system integration.
Chief Executive Officer Andrew Denton said: "The launch of Alfa Systems 6 is a major milestone for the company and I am delighted with the reaction that we have already received. We are well placed to achieve our increased expectations for the year and we remain confident in 2025's performance and in the longer-term outlook for the business."
By Eva Castanedo, Alliance News reporter
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