Asset finance software company Alfa Financial Software has posted a mixed bag of results in a preliminary trading update for the first half of the year, although it maintained its full year revenue forecast.
The FTSE 250 firm said its total contract value (TCV) in the second quarter of 2024 was in line with the strong growth it saw in the first quarter.
“This is significantly above year end and up more than 35 per cent compared with this time last year,” Alfa Financial said on Wednesday. Last year, it posted a record TCV of £165.3m and its subscription TCV grew 28 per cent.
The company’s software platform helps businesses manage retail and corporate operations, including contract management.
Subscription revenues grew “strongly” in the first half, with high teens growth compared to the same period last year.
But software revenues were significantly down on 2023 due to investment in its Alfa Systems 6 product.
Alfa added that services revenue was also lower than last year but it expects this to improve in the second half as new projects increase their budgets.
It said the board continues to expect mid to high single digit revenue growth for the full year.
Andrew Denton, chief executive officer of Alfa, said: “We are pleased with our performance in the first half of the year and are looking forward to an exciting second half of the year with several significant projects ramping up and the release of the final two pillars of Alfa Systems 6.
“This combined with strong sequential growth in Subscription revenues and an encouraging late-stage pipeline means we are well placed to achieve our expectations for the year and remain confident in the longer-term outlook for the business,” he added.
In March, the firm reported a pretax profit of £29.6m in 2023, up slightly from £28.9m in 2022. It reported net cash of £21.8m and no bank debt.
Alfa Financial shares have climbed over 30 per cent year to date.