29th Oct 2020 10:45
(Alliance News) - Alfa Financial Software Holdings PLC said Thursday it has signed two new contracts and been awarded a five-year extension to an existing contract.
Shares in Alfa Financial Software, which provides software for the asset finance industry, were up 6.6% at 132.15 pence on Thursday in London.
The two new contracts are for an unnamed US auto finance customer and for a US retail bank that is providing equipment finance in its home market. The first contract is considered top tier in value by the financial software provider, while the second ranks in the middle tier.
In addition, Alfa has won a five-year extension to a maintenance and licence subscription from an existing client, which will help 2020 revenue as well as giving an additional underpin to maintenance revenue through to 2025.
Trading for the third quarter to the end of September was "good", Alfa said, with revenue at GBP16 million. This was in line with the prior year, but down from the run-rate for the interim period due to an increase in holidays taken by employees.
As a result of this, as well as the new contracts and extension, Alfa expects earnings before interest and tax for 2020 to exceed 2019, when Ebit came in at GBP13.7 million.
The company said it remains cautious for 2021, but expects the additional contracts to benefit its financial performance for the year.
"We are delighted to see the improved contract momentum has continued with very strong recent pipeline conversion. It is particularly encouraging to see the progress we have made in the US. Our contract win with a US auto finance customer builds on our already strong presence in the US automotive market where we also recently announced Alfa Start for US Auto as well as our first go-live with that product. Our win in US equipment finance is with one of the most prestigious names in another highly strategic market for Alfa and positions us well to increase our share in that market," said Chief Executive Officer Andrew Denton.
By Dayo Laniyan; [email protected]
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