Alfa Financial Software Holdings Plc · LSE:ALFA
Alfa Financial Software — H1 2025 Earnings Presentation
40 slides from Alfa Financial Software's earnings presentation, Sep 4, 2025
Slide 1: 2025 Half Year Results
2025 Half Year Results 4 September 2025 Leading software | Smart people Unrivalled delivery | Exceptional IP
Slide 2: Disclaimer
Disclaimer The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. Information in the fo
Slide 3: Agenda
Agenda Introduction and Key Highlights 4 1 Andrew Denton, CEO Financial Review 2 7 Duncan Magrath, CFO 3 Operational Delivery 18 Matthew White, COO 4 Business and Sales Update 23 Andrew Denton, CEO Summary 5 26 Andrew Denton, CEO 2025 has been a strong period of 6 Q&A 28 successful execution 7 Appen
Slide 4: Introduction and Key Highlights
Introduction and Key Highlights Andrew Denton, CEO 4
Slide 5: Overview: Strategic highlights
Overview Strategic highlights Growing SaaS subscription Strong sales and delivery momentum • Subscription revenue stream, up 17% • Strong late-stage pipeline with seven prospects • 12% growth in subscription TCV vs H1 2024 • Working with six of seven customers in late-stage pipeline • ARR of £42m up
Slide 6: Highlights
Highlights £62.5m +22% +17% £210.7m +9% 1 Subscription 112% Total Contract Revenue NRR3 revenue growth Value2 2024 H1: £52.3m 2024 H1: 106% 2024 H1: +18% 2024 H1: £193.3m +33% 35% £21.6m Operating profit 37% £23.9m Operating profit EBITDA margin Cash margin 2024 H1: £16.2m 2024 H1: 33% 2024 H1: £22.
Slide 7: Financial Review
Financial Review Duncan Magrath, CFO 7
Slide 8: Income Statement
Income Statement • Revenues up 20% at actual and Strong overall financial performance 22% on constant currency basis Key Financial Metrics (£m) 2025 H1 2024 H1 Change % • Gross proit margin percentage up Revenue 62.5 52.3 20% 130bps to 64.2% Cost of sales (22.4) (19.4) 15% Gross profit margin (%) 64
Slide 9: Total Contract Value (TCV)
Total Contract Value (TCV) Strong growth in Overall and next 12 months TCV • 9% growth in Total TCV vs Jun-24; £m Subscription up 12%, Software Total TCV £m Next 12 months TCV Engineering up 12% and Delivery in 235 100 96 221 line with Jun-24 TCV 211 90 210 90 193 • Next 12 months TCV up 24% vs Jun-
Slide 10: ARR and NRR
ARR and NRR Annual Recurring Revenue and Net Revenue Retention – new metrics Annual Recurring Revenue Net Revenue Retention (NRR) 44 115% £Millions 112% 42 42 • ARR £41.6m up 16% vs last year 110% (H1 2024: £35.8m) consistent 40 106% with strong growth in 38 Subscription revenue stream 105% 104% 38
Slide 11: Subscription revenues
Subscription revenues Continuing sequential growth in subscription revenues £m Subscription Revenue £m Subscription TCV • Subscription revenue up 17% on H1 2024, making up 34% of our 24.0 160 revenues +12% 145 +17% 140 129 20.0 21.2 • 76% of Subscription revenues coming from customers live on 120 18
Slide 12: Software Engineering revenues
Software Engineering revenues Strong jump in chargeable development work for new customers £m £m Software Engineering TCV • Software Engineering revenues Software Engineering Revenue up 72% from 2024 H1 12.0 22 +12% 10.3 19 • Customised licence revenue flat 10.0 0.2 19 17 as perpetual licence projec
Slide 13: Delivery revenues
Delivery revenues Delivery revenue up 10%, TCV flat as contracted work being delivered • Delivery revenues up 10% year on Delivery Revenue Delivery TCV year £m £m 35.0 60 +10% • 40% of Delivery revenues relates to +0% new customers in definition or 30.0 implementation stage (2024 H1: 31.0 50 47 47 2
Slide 14: Net Operating Expenses
Net Operating Expenses • Cost of sales up 15% and SG&A up Continuing to invest in our people and product to drive growth 11% £m 2025 H1 2024 H1 Change % • Salary costs up £3.2m (+12%) over last year as a result of 7% growth in Salaries, pensions, on-costs and partner costs 23.2 20.7 12% average head
Slide 15: Cash Flow
Cash Flow Cash conversion in line with expectations £m 2025 H1 2024 H1 Cash generated from operations 22.0 18.8 • Cash conversion of 88% for the half year, down slightly on prior year, in Adjusted for: line with expectations for this year Principal element of lease payment (0.2) (0.8) with cash rece
Slide 16: Capital allocation
Capital allocation • We continue to generate excess Strongly cash generative business with strong track record of returns cash, even after allowing for investment in the business Cumulative dividends paid Dividends paid in period • Balance between ordinary and special dividends allows us to 180 8.0
Slide 17: Modelling guidance
Modelling guidance Outlook Currency • Success in conversion of pipeline and the record level of TCV at • 2025 full year currency sensitivity (no change) year end will drive continued growth in our business, in particular new customer Delivery and Software Engineering • Revenue work • 1 US cent = c.£
Slide 18: Operational Delivery
Operational Delivery Matthew White, COO 18
Slide 19: Our strategy
Our strategy Sell Simplify Enable profitable growth by focussing on: Enable more concurrent Alfa Systems • Alfa Systems on Alfa Cloud; implementations, more efficiently, by: • Subscription revenue; • Simplifying our product; • Incremental sales; • Simplifying our implementations; • Commitment to our
Slide 20: People
People Strengthening our fantastic team • Continuing to grow our team – average headcount up 7% vs H1 2024 • Focus on talent development • Investors in People Gold accreditation • High employee retention rate 97% • Employee engagement rate 78% • Smart Hub model proved in Lisbon, starting up new oper
Slide 21: Delivery
Delivery Maintaining our strong delivery track record • Delivered 11 upgrades in H1 with 9 customers already on Alfa Systems 6 • Continuing to build our gold standard Cloud hosting operations – 23 customers now on Alfa Cloud • Investing in Partner Led Delivery (PLD), building our Start product which
Slide 22: Product
Product Extending our product differentiation and expanding addressable market • Developing new functionality for existing customers • Working with our customers to invest in future functionality to access markets: Increases Increases Timeframe SAM TAM US Auto ✓ Now Originations Fleet ✓ Now Commerci
Slide 23: Business and Sales Update
Business and Sales Update Andrew Denton, CEO 23
Slide 24: Late stage pipeline update
Late stage pipeline update Strong late stage pipeline, working with six out of seven prospects • Eight new customer wins in 2024 have kept our Delivery teams fully utilised in H1 2025 • TCV remains strong at £211m • Seven prospects now in late-stage pipeline; we are preferred supplier with all seven
Slide 25: Positive Outlook
Positive Outlook • Demand for asset and automotive finance software remains robust, as our pipeline demonstrates • 2024 customer wins driving growth in Delivery and Software Engineering and future increase in Subscription • Continuing to invest in our product, increasing our technical and functional
Slide 26: Summary
Summary Andrew Denton, CEO 26
Slide 27: Overview: Strategic highlights
Overview Strategic highlights Growing SaaS subscription Strong sales and delivery momentum • Subscription revenue stream, up 17% • Strong late-stage pipeline with seven prospects • 12% growth in subscription TCV vs H1 2024 • Working with six of seven customers in late-stage pipeline • ARR of £42m up
Slide 28: Q&A
Q&A 28
Slide 29: Appendices
Appendices 29
Slide 30: Late stage pipeline update
Late stage pipeline update Key: Won New in late stage Moved back Lost Project Annual Status Status Potential Client descriptor Territory Comment Revenues Subscription Mar-25 Sep-25 Retail Bank I ROW Working Working Talks Auto OEM J NA Contracting Contracting Workshops and contracting on
Slide 31: Strong customer retention & win acceleration
Strong customer retention & win acceleration Acceleration of customer wins underpinning growth 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 • Strong customer retention: • Of our v5/AS6 customers that have gone live, only two have left Alfa, where the customers exit
Slide 32: Balance sheet
Balance sheet Robust balance sheet with £23.9m of cash £m 2025 H1 2024 FY • Trade receivables up slightly from Dec Total non-current assets 44.1 42.9 2024 to £8.7m Current assets Trade receivables 8.7 8.6 • Prepayments, accrued income and Prepayments, accrued income and other receivables 13.2 9.9 ot
Slide 33: Revenue profiles
Revenue profiles Strong base of revenue of a recurring nature • Subscription customers all recurring Revenue from existing and new customers revenues; 34% of overall revenues 2025 H1 By Stream • 46% of Software Engineering revenues Sub Soft Del Total from existing customers; 15% of overall revenues
Slide 34: Market & customer diversification
Market & customer diversification Improved revenue quality Revenue 2025 H1 – by market No. Customers > £2m annual revenue 25 23* • Continued strong diversification of 21 customer base across regions and market segments 20 19 17 US Auto Captive UK Equipment Bank • Strength of customer base continues
Slide 35: Background information
Background information 35
Slide 36: Revenue streams
Revenue streams Our strategy is to grow subscriptions by continuing to enhance our product, Better reflecting underlying nature of revenues unlocking more markets and ultimately delivering more Alfas to new customers Software Product investment Engineering • Software Engineering1 revenues largely ar
Slide 37: Customer life cycle
Customer life cycle Illustrative customer journey • Definition work may commence before Typical customer revenue profile final contracts are signed Final go-live • Once contracts are signed, subscription Software development fees build up with volume of contracts and environments utilized • Delivery
Slide 38: Subscription growth: TCV at 2x scale of revenue
Subscription growth Subscription is our fastest growing Subscription revenues and TCV ramp up over time revenue stream, with growth coming from: • Growth in existing customers portfolio volumes, migration of Illustrative Customer Subscription Profile* business onto Alfa and purchase of new software
Slide 39: Fundamental Strategic Change, Achieved Incrementally
Fundamental Strategic Change, Achieved Incrementally Watch our CEO and CTO discuss the evolution of our best-in-class technology here 2010 Today Alfa Systems v5 launched Alfa Systems 6 launched Deployed on-premise Single-tenant SaaS deployment Significant hardware deployment effort Alfa Systems avai
Slide 40: Definitions
Definitions Measures not specifically defined by IFRS Constant currency Total Contract Value (TCV) When the Company believes it would be helpful for understanding trends TCV is calculated by analysing future contract revenue based on the following in its business, the Company provides percentage inc
Alfa Financial Software Holdings — H1 2025 Earnings Presentation on 6ix