Alfa Financial Software Reports First-Half Earnings Amid Subscription Growth
Alfa Financial Software reported first-half revenue of £65.1 million, a 4% increase year-over-year at actual exchange rates and 5% at constant currency. The company saw strong growth in subscription revenue, which rose by 14% to £24.1 million, representing 37% of total revenue as it continues its shift toward recurring income models. Annual recurring revenue climbed 17% to £48.5 million with a net retention rate of 110%. Total contract value also increased by 17% year-over-year to £247 million, supported by customer wins and an active late-stage pipeline involving nine prospects across multiple regions. Despite these gains, operating profit fell 15% to £18.4 million due to a decline in software engineering activity, severance costs of £1.6 million, and foreign-exchange hedge losses totaling £2 million compared with the prior year. Management remains confident about its full-year outlook, citing expected recovery in software engineering revenue and continued investment in AI for medium-term margin expansion.
Tickers: $ALFA
Topics: AI investment operating profit decline revenue growth subscription revenue