Alfa earnings surge as it implements new software

The FTSE 250 company’s adjusted EBIT surged 26% over 2016 to £41.2m, while adjusted EBIT at constant currency was up 17% at £39.6m.

Adjusted diluted earnings per share were 38% higher than in the prior year at 11p.

On a statutory basis, revenue rose 20% to £87.8m, and operating profit steamed ahead 104% to £33.8m.

Statutory profit for the period rocketed 162% to £25.9m, with basic statutory earnings per share 225% higher than in 2016 at 9.1p.

Looking at operations, Alfa completed five successful software implementations during 2017, adding that it had a “strong pipeline” and diversity of prospects, giving the board confidence for 2018.

It increased its headcount to 329 by year-end, from 269 at the end of 2016, which Alfa said gave it increased fee earning capacity.

The board added that the digitalisation and “functional evolution” of Alfa continued to drive its sales pipeline.

“This has been a significant year for Alfa with the successful delivery of five software implementations and the continued expansion of our customer base,” said chief executive Andrew Denton.

“Despite the weakening dollar in the last quarter of the year, we have delivered revenue of £87.8m, at the top end of our guidance of underlying high double-digit top line growth and a 2017 adjusted EBIT margin of 47%, which we believe is testament to the quality of our product and delivery teams.”

Denton said the company was continuing to focus on delivering value to shareholders through the successful execution of its growth strategy.

“We are committed to continuing to invest in and develop Alfa, expand our customer base and build the business for the future through broadening the geographic footprint and securing further market share.

“We have recently executed a global framework agreement with a customer in the equipment finance vertical, which will further our continued aim to diversify our portfolio and to be the leader across all asset finance market verticals and geographies.”

Building on its recent customer wins, Denton added that Alfa expected to continue to deliver on its “highly differentiated” strategy, serving an addressable market of more than $3bn.

“Against a backdrop of a weakening dollar, the board expects to report low double-digit top line growth on a budget rate, or mid double-digit growth on a constant currency basis.

“Alfa continues to see a strong and diverse pipeline of opportunities which underpin the board's confidence through 2018, with revenue growth weighted to the second half of the year as the full benefit of recent wins is felt.”