1st Sep 2022 11:22
(Alliance News) - Alfa Financial Software Holdings PLC on Thursday posted a rise in interim profit and revenue on the back of subscription growth and offered a sunny outlook for the year ahead despite potential macro-economic headwinds.
In the six months that ended June 30, the financial software developer posted a pretax profit of GBP13.8 million, up 25% against GBP11.0 million the previous year.
Revenue climbed 6.8% to GBP43.9 million from GBP41.1 million. The firm said the figure benefited from favourable currency movements, despite total chargeable days being impacted by increased holidays and sickness days.
Alfa added that it has continued to reduce its dependency on key customers, with its top five customers representing 35% of first half revenue, down from 43% the previous year.
Subscription revenue has continued to grow, rising 18% against the previous year and now contributing 31% of total revenue. Software and Services revenue grew more modestly, up 5% and 2% respectively against the prior year.
Looking forward, Alfa said the macro-economic outlook was uncertain due to rising inflation and the risk of recession. Despite this, the firm said it believes the asset finance software market will remain "robust".
Assuming no significant change in conditions, Alfa said it is confident in achieving its full-year expectations, adding that it also has the opportunity to exceed them through the second half of the year.
Shares in were up 0.4% at 172.09 pence on Thursday morning in London.
By Heather Rydings; [email protected]
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