Alfa Financial confident for full year as quarterly revenue rises
Alfa Financial Software Holdings PLC on Thursday issued an optimistic trading update for its first quarter, proclaiming ‘a good start to 2026’ despite the ‘volatile macroeconomic backdrop’.
The London-based provider of software to automotive finance providers reported £31.9 million in revenue for the three months to March 31, up 3% from the previous year’s ‘very strong’ first quarter when revenue jumped 20% to £31 million. At constant currency, revenue increased 5% on-year, slowing from 21% in 2025 but ‘in line with management’s expectations.’
Alfa Financial said Subscription revenue showed further ‘strong growth,’ rising 13% compared with the prior year’s 21% increase. Delivery revenue growth was unchanged at 8%, while Software Engineering revenue fell 35%. However, Alfa said this was ‘as expected’ and also ‘versus a very strong quarter last year,’ when the segment’s top line surged 79% higher.
Alfa noted that the quarter included ‘a successful go-live for a long-standing customer who upgraded from v4 onto AS6,’ which ‘further reinforces Alfa’s ability to deliver complex, multi-country migrations at scale on Alfa Cloud.’ Additionally, the firm said it won a contract ‘for the Canadian operations for a global OEM’ during the period, and that it has nine prospects in its late-stage pipeline. Its total contract value was £232.4 million at March 31, up 2% from the ‘record’ £227 million reached by the same day one year prior.
Going forward, Alfa said it is confident that it can meet expectations for the full year, although it noted: ‘We are conscious of the uncertainties in the global political and economic environment, and whilst there is no direct impact on our business we remain alert to potential changes in discretionary spending and the impact of FX.’
Chief Executive Officer Andrew Denton, meanwhile, commented: ‘I am pleased that we have made a good start to 2026. We are operating against a volatile macroeconomic backdrop but our focus remains on delivering exceptional performance to our customers and continuing to develop our products further to retain our advantage over the competition...we are well placed to benefit from developments in AI and we are confident in our growth expectations for 2026 and beyond.’
Shares in Alfa Financial were down 2.0% at 151.20 pence late on Thursday morning in London.
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